DENA BANK WELCOMES YOU AT ANALYST MEET€¦ · RETAIL LENDING 22 [`cr] [`cr] Dec 11 Dec 12 Y-o-Y Growth % Direct Retail 4,765 6,202 30.17 Total Retail 6,614 7,666 15.90 % of Gross

DENA BANK

WELCOMES YOU

AT ANALYST MEET

30TH JANUARY 2013

DENA BANK

PROUDLY

CELEBRATES

PLATINUM JUBILEE

1938 - 2013

2

3

DENA BANK will emerge as

the most preferred Bank of

customer choice

in its area of operations,

by its reputation and

performance.

VISION

4

DENA BANK will provide its

Customers - premier financial services of great value,

Staff - positive work environment and opportunity

for growth and achievement,

Shareholders - superior financial returns,

Community - economic growth

MISSION

SHARE HOLDING PATTERN

Govt. of India

55.24%

Mutual Funds1.42%

FI & Banks0.03%

Ins Cos8.50%

FIIs17.83%

Indian Public13.74%

Corp. Bodies2.75%

NRIs & OCBs0.49%

• Share Capital ` 350.06 cr

•No. of Shares 35.01cr

•Net worth ` 4781.35 cr

•B. V. per share ` 141.66

•Return on Equity 18.29 %

(annualised)

5

Govt. of India 55.24

LIC 8.50

GMO Emerging Markets Fund 2.14

Acacia Partners LP 1.70

Samlam Asset Mgmt (Ireland) Ltd. 1.64

Jupiter India Fund 1.15

Macquarie Bank Ltd. 1.12

Top Shareholders [%]

BRANCH NETWORK

Bank has opened 14 newbranches during the Quarterand total 89 branches during9 Months ending Dec 12.

[` cr] March 12 Dec 11 Dec 12

Branches 1342 1307 1431

Ext. Counters

12 12 7

ATMs 543 535 576

6

Category 31.12.12 % share

Rural 517 36

Semi Urban 293 20

Urban 284 20

Metro 337 24

Total 1431 100%

2008

Dec

2009

Dec

2010 Dec

2011Dec

26.28% 29.38% 14.09%

CAGR 24.13% . Business Growth 2.4 times in 4 yrs.[ ` cr]

7

BUSINESS GROWTH

2012

Dec

27.23%

` 62,297 ` 78,767` 1,01,905 ` 1,47,922` 1,16,267

Dec 12

Dec 11

Dec 10

Dec 09

` 187 cr

` 155 cr

` 135 cr

Dec 12

Dec 11

Dec 10

Dec 09

` 393 cr

` 316 cr

` 198 cr

NET PROFIT

Operating PROFIT

8

PROFITABILITY

` 206 cr

` 443 cr

KEY INDICATORS

9

[` cr]

Full Year QuarterIncrease

[%]

Nine MonthsIncrease

[%]Dec 11 Dec 12March 12 Dec 11 Dec 12

Operating Profit

1528 393 443 12.69 1053 1338 27.09

Net Profit 803 187 206 10.58 548 685 24.87

Total Income 7376 1810 2408 33.05 5210 7015 34.65

Total Expenses

5848 1417 1965 38.69 4157 5677 36.56

Provisions & Contingencies

725 206 237 14.6 505 653 29.5

INCOME

10

[` cr]


[%]

Nine MonthsIncrease


Total Income 7376 1810 2408 33.05 5210 7015 34.65

Interest Income 6794 1676 2264 35.06 4838 6595 36.31

Advances 5161 1293 1742 34.76 3696 5082 37.52

Investments 1544 375 519 38.42 1118 1463 30.9

Other 89 9 3 [65.16] 25 50 100.76

Non Interest Income

582 134 144 7.83 372 420 12.99

NON INTEREST INCOME

11

[` cr]


[%]

Nine MonthsIncrease


Comm. Exchange, Brokerage

159 40 45 14.46 110 132 20.28

Exchange Earned on Forex

82 22 21 [4.62] 55 61 12.35

Profit on Sale of Investment

35 10 23 131.22 15 74 384.30

Recovery in written off a/cs 70 15 13 [12.01] 38 28 [26.56]

Process Fee 106 22 20 [7.33] 55 60 9.99

Other Income 130 25 21 [15.78] 99 64 [35.44]

EXPENSES

12

[` cr]

Full Year Quarter Increase

[%]

Nine Months Increase


Total Expenses 5848 1417 1965 38.69 4157 5677 36.56

Interest Expenses

Deposits 4528 1093 1571 43.75 3221 4574 41.99

Others 165 42 78* 85.15 114 200* 75.16

Operating Expenses

1155 282 316 6.05 821 903 9.93

a. Salaries 715 171 192 12.52 502 543 8.34

b. Other

Operating

Expenses

440 111 124 11.60 320 360 12.42

* Increase is partly due to Interest of Rs 19.61 cr per Qtr paid on

Lower Tier II Bonds of Rs 850 cr raised in June 12.

NET INTEREST INCOME

13

[` cr]

Full Year Quarter Nine Months

March 12 Dec 11 Dec 12 Dec 11 Dec 12

Net Interest Income

2101 541 615 1503 1821

Net Interest Margin [%]

3.17 3.33 2.88 3.16 2.92

283

466

515

615

200

300

400

500

600

700

Dec 09 [Q] Dec 10 [Q] Dec 11 [Q] Dec 12 [Q]

PROVISIONS & CONTINGENCIES

14

[` cr]



NPA 262 69 76 156 230

Tax Expense 163 82 80 233 289

Investment Depreciation 104 21 [8] 68 [44]

Standard Assets 85 24 45* 22 76*

FITL 51 12 29 14 65

NPV of Restructured A/cs 46 0 15 0 37

Others 15 0 0 11 1

Total Provisions 725 206 237 505 653

* Includes additional provision of ` 29.15cr @ 0.75% on standard restructured

assets.

RESOURCES /DEPLOYMENT

15

[` cr]

March 12 Dec 11 Dec 12Growth

[%]

Current Deposits 7,273 5,554 6,083 9.52

Savings Deposits 19,317 18,293 20,216 10.51

CASA Deposits 26,590 23,847 26,299 10.28

Term Deposits 47,250 42,482 55,061 29.61

Aggregate Deposits 73,840 66,329 81,360 22.66

CASA [%] to

Total Deposits34.46 34.90 30.98

Inter Bank Deposits 3,327 2,009 3,522 75.31

TOTAL DEPOSITS 77,167 68,338 84,882 24.21

GROSS ADVANCES 57,159 47,928 63,040 31.53

BUSINESS MIX 134326 116268 147922 27.23

RESOURCES

16

[` cr]

Bank has witnessed CAGR of 10.84% in

CASA Deposits over last two years

Bank has witnessed CAGR of 18.47% in

Total Deposits over last two years

10,00012,00014,00016,00018,00020,00022,00024,00026,00028,00030,000

Dec'10 Dec'11 Dec'12

21,40623,847

26,299

CASA Deposits

40,000

50,000

60,000

70,000

80,000

90,000


60,47968,338

84,882

Total Deposits

DEPOSITS

17

Total Deposits growth by24.21% y-o-y at ` 84882 cr.

Term Deposits growth by29.61% y-o-y at ` 55061 cr.

CASA growth by 10.28% y-o-y at ` 26299 cr.

CASA share in Total Deposits at 30.98%.

ADVANCES

18

[` cr]

March 12 Dec 11 Dec 12

Gross Advances

[Growth %]

57,159

[26.56]

47,928

[15.70]

63,040

[31.53]

Priority Sector

[Growth %]

15,501

[24.60]

13,146

[3.17]

17,806

[35.45]

Direct Agriculture

[Growth% ]

3,875

[31.13]

3,399

[7.17]

4,934

[45.15]

MSME

[Growth %]

8,291

[22.22]

7,368

[17.60]

9,481

[28.68]

Retail

[Growth %]

7,282

[18.68]

6,614

[13.02]

7,666

[15.90]

CD Ratio [%] 74.07 70.13 74.27

ADVANCES

19

[` cr]

Bank has witnessed CAGR of 23.36% in Advances over last two years.

10,000

20,000

30,000

40,000

50,000

60,000

70,000


41,42647,928

63,040

Advances

COMPOSITION OF ADVANCES

20

Parameter Outstanding as ofGrowth over

Dec 11 % to Total Advances

Dec 11 Dec 12 Amt %

Agriculture 4,199 6,589 2,390 56.91 10.45

MSME 7,368 9,481 2,113 28.68 15.04

Large Industries

14,830 19,500 4,669 31.48 30.93

Retail 6,614 7,666 1,052 15.90 12.16

Food Credit 1,000 1,185 185 18.48 1.88

Others 13,917 18,619 4,703 33.79 29.54

Total 47,928 63,040 15,112 31.53 100.00

[` cr]

LOAN BOOK - BREAKUP

21

MSME15.04%

Food Credit1.88%

Others *29.54%

Retail Credit 12.16%

Large Industries 30.93%

Agriculture Credit10.45%

RETAIL LENDING

22

[` cr]

[` cr] Dec 11 Dec 12 Y-o-Y Growth

%

Direct Retail 4,765 6,202 30.17

Total Retail 6,614 7,666 15.90

% of Gross Advances

10.49 12.16

Segment Amount % To Total Retail

Housing 4,568 59.58

Vehicle 570 7.44

Education 331 4.32

Mortgage 1,078 14.06

Personal 44 0.58

Dena

Trade709 9.25

Doctor + 11 0.15

Others 355 4.62

Total 7,666 100.00

Housing 59.58%

Vehicle 7.44%

Education

4.32%

Mortage14.06

Personal 0.58%

Dena Trade9.25%

Doctor Plus

0.15%

Others 4.62%

PRIORITY SECTOR LENDING

23

Sr No Parameters Dec 11 Dec 12 Y-o-Y

1 Agriculture 4,199 6,589 56.92%

Direct 3,399 4,934 45.16%

Indirect 800 1,655 106.88%

2 MSE 6,369 8,114 27.40%

3 Others 2,578 3,103 20.36%

Total PSL 13,146 17,806 35.45%

PSL % to ANBC 29.53 31.31

[` cr]

INVESTMENTS

24`

[` cr]Dec 11 Dec 12 % to Total

GROSS INVESTMENTS 20551 26857 100

SLR INVESTMENTS

Treasury Bills 0 99 0.37

CG securities 11519 15791 58.80

State Govt. SecuritiesOther Approved Securities

5648 6714 25.000.07

Total 31 19 84.24

NON-SLR INVESTMENTS 17198 22624

PSU Bonds 1.41

Corporate Debentures 273 379 2.09

CDs 302 563 2.91

CPs 258 781 0.57

Shares of PSUs /Corporates & Others

88 153 0.84

Regional Rural Banks 715 225 0.19

Units of MF 22 48 0.02

Venture CF 15 6 0.08

RIDF /SIDBI /NHB 19 20 7.65

Investment Outside India 1662 2056 0

Total 3353 4233 15.76

TREASURY MANAGEMENT

25

[` cr]

Dec 11 Dec 12 % Growth % to Total Investment

Aggregate Investment 20551 26857 30.68 100

Of which (i) HFT 31 130 420.30 0.49

(ii) AFS 3345 6234 86.39 23.21

(iii) HTM 17176 20493 19.31 76.30

SLR Invt 17198 22624 31.55 84.24

Non-SLR Invt 3353 4233 26.24 15.76

of which – Rated 536 909

– Unrated 115 135

- RIDF/NHB/SIDBI 1662 2056

Average Yield on all Investments %

7.38 7.65

Trading Profit 10 15 49.25

VAR 204 243Duration (Yrs)

AFS

HTM

HFT

3.64

4.52

7.30

4.69

4.48

1.86

ADVANCES - CLASSIFICATION

26

Dec 11 Dec 12

Asset Category Amount % age Amount % age

Standard 47,043 98.15 61,723 97.91

Sub Standard 361 0.75 627 0.99

Doubtful 437 0.92 589 0.94

Loss 87 0.18 101 0.16

Total 47,928 100 63,040 100

[` cr]

MOVEMENT OF NPA



Gross NPA

Opening Balance842 830 1171 842 956

Less:

Cash recoveries 223 40 42 165 143

Up gradations 191 32 24 159 100

Write off 194 47 26 111 114

Total Reductions 608 119 92 435 357

Add:

Slippage & Debit Operations 722 174 238 478 718

GROSS NPA 956 885 1317 885 1317

GROSS NPA [%] 1.67 1.85 2.09 1.85 2.09

NET NPA 572 524 817 524 817

NET NPA [%} 1.01 1.10 1.31 1.10 1.31

Recovery in w/o A/cs 70 15 14 38 28

27

[` cr]

EXPOSURE TO MAJOR INDUSTRIES

28

Dec 11 Dec 12

Sector Amount % age Amount % age

Infrastructure 10,202 21.29 12,675 20.11

Power 8,422 17.57 9,814 15.57

Telecom 432 0.90 883 1.40

Roads & Ports 748 1.56 774 1.23

Other Infra 600 1.25 1,204 1.91

Metal incl Iron &

Steel

2,677 5.59 3,499 5.50

Textiles 2,268 4.73 2,779 4.41

Chemical & Chemical

Products

1,149 2.40 1,567 2.49

All Engineering 1,306 2.72 2,140 3.40

Gems & Jewellery 636 1.33 655 1.04

Food Processing 502 1.05 896 1.42

Construction 69 0.14 186 0.29

[` cr]

RESTRUCTURED ADVANCES

29

Dec 11 Dec 12

Sector Amount % age Amount % age

Agriculture 55 2.97 56 1.17

Power 0 0 2204 45.94

Textiles 173 9.35 490 10.21

Cement & Products 213 11.56 284 5.91

Iron & Steel 401 21.71 250 5.21

Telecom 0 0 358 7.47

Civil Aviation 0 0 182 3.80

Hotel 105 5.71 103 2.15

Petro Chemical 108 5.87 19 0.40

Other Infrastructure 182 9.85 90 1.88

Others 609 32.98 761 15.86

Total 1845 100 4,797* 100.00

[` cr]

*Out of this, ` 2,062 cr [43%] covered by Govt. Guarantee.

CAPITAL ADEQUACY

[` cr] 31.03.2012 31.12.2011 31.12.2012

Net Worth 4256 3937 4781

Risk Weighted Assets

50574 42453 56770

Total Capital Funds 5822 4918 6513

Tier I Capital 4482 3628 4322

Tier II Capital 1340 1290 2191

30

Capital Adequacy Ratio

[` cr] 31.03.2012 31.12.2011 31.12.2012

Under Basel I 10.07 10.12 9.86

Under Basel II 11.51 11.58 11.47

Tier I 8.86 8.54 7.61

Tier II 2.65 3.04 3.86

HEAD ROOM AVAILABLE

31

[` cr]

March 12 Dec 12

HEAD ROOM Tier I

Equity Capital 29 29

Perpetual Debt [IPDI] 291 422

PNCPS 1252 1057

Total Head Room Tier I 1572 1508

HEAD ROOM Tier II

Upper Tier II Bonds 1621 1469

Lower Tier II Bonds 1521 663

Total Head Room Tier II 3142 2132

Total Head Room Available 4714 3640

During June-12, Bank raised Lower Tier –II Bonds of ` 850 cr.

SHAREHOLDERS’ RETURNS

32

KEY RATIOS

Ratios [%]



A Cost of Deposits [%] 7.06 7.09 7.75 6.92 7.69

B Cost of Funds [%] 7.11 7.16 7.79 6.99 7.73

C Yield on Advances [%] 11.77 12.18 11.97 11.82 11.91

D Yield on Investments 7.39 7.38 7.65 7.36 7.64

E Yield on Funds [%] 9.78 9.97 10.14 9.69 10.13

F Net Interest Margin 3.17 3.33 2.88 3.16 2.92

GProvision Coverage Ratio

[Incl Tech W/O]75.53 76.56 70.57 76.56 70.57

33

KEY RATIOS

Ratios [%]

Full Year

Quarter Nine Months

March 12

Dec 11 Dec 12 Dec 11 Dec 12

A. Cost to Income Ratio 43.04 41.77 41.65 43.82 40.29

i) Staff Cost to Income Ratio 26.64 25.30 25.31 26.76 24.25

ii)Other Overhead to

Income Ratio16.40 16.47 16.34 17.06 16.04

B Net profit to Total Income 10.89 10.31 8.57 10.53 9.76

C Return on Assets [Annualised] 1.08 1.05 0.87 1.05 0.99

D Return on Equity [Annualised] 20.72 20.46 18.29 19.58 19.70

EEarning Per Share `

[Non-annualised]24.08 5.60 5.90 16.45 19.56

34

PRODUCTIVITY RATIOS

35

[` cr]

Dec 11 Dec 12

Business per Branch 96.09 110.47*

Business per Employee 11.73 13.21*

Profit Per Branch [ ` Lacs] 61.71 61.67

Profit Per Employee [ ` Lacs] 7.54 7.37

* Bank has opened 89 branches during April-Dec 12.During this

period, 1413 new employees have joined the Bank.

CSR INITIATIVES

36

Scholarship to Girl Child

Mediclaim to all DKCC Borrowers by the Bank

Urban Financial Inclusion – 147 Kiosks already set up with Geosansar.

20 ATMs in Tribal areas including Biometric ATMs.

GOING FORWARD

Bank is targeting credit growth of 18% and

deposit growth of 20%.

Bank expects to maintain NIM around 3% for

whole of the FY 2012-13.

Bank has already opened 89 branches

during the current year up to Dec 2012 and

plans to open total 100 branches during the

FY 2012-13. Bank also plans to open 150-200

Branches every year .

37

GOING FORWARD

Bank has recruited 2274 fresh talent [693

officers, 1090 clerks and 491 sub-staff] during

FY 2012-13, out of which 1413 [356 Officers,

621 clerks and 436 Sub-staff] have already

joined.

As a part of Platinum Jubilee celebrations,

Bank will undertake various CSR activities

upto 26th May 2013.

Bank will start monitoring of borrowal

accounts Online to prevent slippage. At

present, Bank is monitoring all accounts

above Rs 10 cr on daily basis.

38

GOING FORWARD

Bank is in the process of launching various

new IT Products viz. Issue of Gift & Travel

Cards, Utility Bill Payment through ATM and

Mobile Banking, Income Tax payments

through ATM, Card less remittance through

ATM & IMPS through USSD / using Bank

IFSC etc.

39

FINANCIAL INCLUSION

The Bank has successfully implemented Financial

Inclusion Plan for providing banking services in 730

villages, with population above 2000 allocated to it.

Apart from this, 617 villages, with population below

2000 out of the allotted target of 1347 villages have also

been covered.

Bank has set up Ultra Small Branches in 968 villages,

which are serviced through Business Correspondent

Model, besides regular visit by Bank’s officials.

Bank has opened 15.56 Lac Basic Savings Accounts

till 31st December 2012 against target of 12 lacs for FY

2012-13. Out of this, in–built Over Draft Facility has

been extended in 8.56 Lac accounts.

40

FINANCIAL INCLUSION

Similarly Bank has embarked upon urban financial

inclusion plan for providing banking services to urban

poor, slum dwellers and other inhabitants including

migrant workers & Street Vendors /hawkers in select

urban areas in the state of Gujarat. Up to 31st

December 2012, Bank has set up 147 Kiosks against

target of setting up 100 Kiosks in urban areas during FY

2012-13.

Bank has also launched Direct Cash Transfer

Scheme as per Govt. Of India Guidelines through

Aadhaar Payment Bridge System (ABPS) and Aadhar

Enabled Payment System (AEPS).

41

THANK YOU !

42

Documents

DENA BANK WELCOMES YOU AT ANALYST MEET€¦ · RETAIL LENDING 22 [`cr] [`cr] Dec 11 Dec 12 Y-o-Y Growth % Direct Retail 4,765 6,202 30.17 Total Retail 6,614 7,666 15.90 % of Gross