Q3 FY 2022 Review

DCB Bank Limited reported net revenue of ₹878.08 crores for the quarter ended December 31, 2021, compared to ₹869.35 crores for December 31, 2020. Profit After Tax was ₹75.37 crores for the quarter ended, 31, 2021, as compared to ₹96.21 crores, during the corresponding quarter of the previous year respectively.

DCB Bank - Investment Summary

DCB Bank - Overview

• DCB Bank Limited launched the 400th Branch on 05th April 2022.

• Due to the covid-19 disruptions and lockdowns, Bank had slowed down its branch expansion. They aim to open 25 to 30 branches in the next 12 to 18 months.

• The Bank has allotted 37,500 equity shares of ₹10 each under the Employee Stock Option Plan terms. With that Bank’s issued and paid share capital has increased to 31.10 crores equity shares of ₹10 each.

DCB Bank - Quarterly Summary

Business

• DCB Bank is a new generation private sector bank with 400 branches (10th April 2022) across India.

• It is a scheduled commercial bank regulated by the Reserve Bank of India.

• DCB Bank’s business segments are Retail, Micro-SME, SME, Mid-corporate, Agriculture, Commodities, Government, Public Sector, Indian Banks, Co-operative Banks, and Non-Banking Finance Companies.

• DCB banks have approximately 9,50,000 customers.

• Incorporated in 1995, DCB was formed through the merger of Ismailia Co-operative Bank Limited and Masalawala Co-operative Bank.

• The Aga Khan Fund for Economic Development (AKFED) and Group companies are the largest shareholders in the bank, with a combined stake of 14.86% as of 31st March 2022.

• DCB Bank's business segments include:

  • Treasury Operations:

    • Treasury actively manages liquidity and compliance with important regulatory items such as CRR/SLR, trading in fixed income securities and currencies, and investment in IPO.

    • Treasury also shares the responsibility of interest rate risk management of the Bank.

  • Corporate Banking:

    • The Bank intends to have limited exposure in Corporate Banking.

    • The Bank has a robust underwriting and credit/process to address the inherent risks in Corporate Banking.

  • Retail Banking:

    • Retail Banking offers unique products to meet the financial needs of individuals and businesses.

• Out of the total revenue, 22% has been generated from Treasury operations, 9% from Corporate/wholesale Banking, 69% from Retail Banking, and 1% from others in FY 2021 compared to 21%, 11%, 67%, and 1% in FY 2020, respectively.

DCB Bank - Revenue Trend

Topline and Bottomline trend (crores)

Ratio Analysis

DCB Bank - Financial Overview

DCB Bank - Profit and Loss Statement (₹ in crores)