Close
  • About Us
  • Auto Trender
  • Careers
  • Downloads
  • Refer & Earn
  • Contact Us
  • SMC open account icon Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c
  • SENSEX Sep 27 2022 01:57
    57,392.79 +247.57 ( +0.43%)
  • NIFTY Sep 27 2022 01:54
    17,098.20 +81.90 ( +0.48%)
  • SENSEX Sep 27 2022 01:57
    57,392.79 +247.57 ( +0.43%)
  • NIFTY Sep 27 2022 01:54
    17,098.20 +81.90 ( +0.48%)
  • Nasdaq Sep 27 2022 04:30
    10,802.92 -65.01 (-0.60%)
  • DJIA Sep 27 2022 04:30
    29,260.81 -329.60 (-1.11%)
  • S&P 500 Sep 27 2022 04:30
    3,655.04 -38.19 (-1.03%)
  • Hang Seng Sep 26 2022 02:10
    17,855.14 -78.13 (-0.44%)
  • Crude Oil Sep 27 2022 01:57
    6,399.00 +65.00 ( +1.03%)
  • Gold Sep 27 2022 01:57
    49,335.00 +185.00 ( +0.38%)
  • Silver Sep 27 2022 01:58
    55,813.00 +461.00 ( +0.83%)
  • Copper Sep 27 2022 01:36
    629.75 +7.35 ( +1.18%)
  • Pound / Rupee Dec 23 2016 22:30
    88.07 -1.62 (-1.80%)
  • Dollar / Rupee Dec 23 2016 22:30
    81.24 +1.62 ( +2.03%)
  • Euro / Rupee Dec 23 2016 22:30
    78.70 +0.35 ( +0.45%)
  • Yen / Rupee Dec 23 2016 22:30
    0.57 +0.01 ( +1.82%)

DCB Bank Ltd

BSE Code : 532772 | NSE Symbol : DCBBANK | ISIN:INE503A01015| SECTOR : Banks |

NSE BSE
 
SMC up arrow

105.20

3.50 (3.44%) Volume 931360

27-Sep-2022 13:54:57

Prev. Close

101.70

Open Price

101.65

Bid Price (QTY)

105.20(102)

Offer Price (QTY)

105.25(5)

 

Today’s High/Low 105.50 - 98.85

52 wk High/Low 119.00 - 67.85

Key Stats

MARKET CAP (RS CR) 3162.92
P/E 9.01
BOOK VALUE (RS) 122.8428312
DIV (%) 10
MARKET LOT 1
EPS (TTM) 11.28
PRICE/BOOK 0.827480114281182
DIV YIELD.(%) 0.98
FACE VALUE (RS) 10
DELIVERABLES (%) 42.27
4

News & Announcements

23-Sep-2022

DCB Bank Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

21-Sep-2022

DCB Bank Ltd - DCB Bank Limited - Closure of trading window

20-Sep-2022

DCB Bank Ltd - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation

15-Sep-2022

DCB Bank announces board meeting date

26-Sep-2022

DCB Bank allots 1,300 equity shares under ESOP

15-Sep-2022

DCB Bank announces board meeting date

08-Sep-2022

DCB Bank allots 1.26 lakh equity shares under ESOP

23-Jul-2022

DCB Bank to conduct board meeting

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Axis Bank Ltd 532215 AXISBANK
Bandhan Bank Ltd 541153 BANDHANBNK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
CSB Bank Ltd 542867 CSBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Equitas Small Finance Bank Ltd 543243 EQUITASBNK
Federal Bank Ltd 500469 FEDERALBNK
Fino Payments Bank Ltd 543386 FINOPB
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDBI Bank Ltd 500116 IDBI
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Jammu and Kashmir Bank Ltd 532209 J&KBANK
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd(Merged) 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Suryoday Small Finance Bank Ltd 543279 SURYODAY
Tamilnad Mercantile Bank Ltd 543596 TMB
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 43330695 13.93
Total Institutions 117013386 37.62
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 12662347 4.07
Total Promoters 46200234 14.85
Total Public & others 91825151 29.52
Total 311031813 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About DCB Bank Ltd

DCB Bank Limited, formerly Development Credit Bank, is one of the new generation private sector banks in India. Keeping in view its inherent strengths, branch network and expertise, the bank's target market is mainly small business owners / self-employed / small business segment (traders, shopkeepers, business owners, MSMEs and SMEs). The bank chose to have limited presence in salaried segment. The bank also distributes Life Insurance, Health Insurance, General Insurance and Mutual Fund products to new and existing customers. As on 31 December 2020, Bank's total distribution network stood at 347 branches and over 500 ATMs across 18 states and 2 union territories. Development Credit Bank was started as a Credit Society in the 1930s. Eventually, Diamond Jubilee Co-operative Bank Ltd merged with Ismailia Co-operative Bank Ltd. In the year 1981, Ismailia Co-operative Bank Ltd was amalgamated with Masalawalla Co-operative Bank Ltd to form the Development Co-operative Bank Ltd. Later, Citi Cooperative Bank Ltd merged with Development Co-operative Bank Ltd. In the year 1995, Development Co-operative Bank Ltd was converted into Development Credit Bank Ltd. During the year 1995-96, the Bank opened new branches at Vapi, Sidhpur, Ahmedabad and Bangalore. During the year next year, they opened the new branches at Mira Road and Rajkot. A total of 11 news new branches were opened during the two financial years of 1999-2001. During the year 2001-03, the Bank opened a new branch at Jharsa in Haryana. During the year 2002-03, the Bank launched mobile banking offering both push and pull options. During the year 2004-05, they launched visa funds transfer and celfill offering mobile recharge through ATMs to even non-customers. Also, they launched 3 new brahces during the year. During the year 2005-06, the Bank raised capital through private placement amounting to Rs. 51.99 crores. They launched some new products, namely Free Style Savings Account, Value Savings and M-Power Current Accounts during the year. During the year 2006-07, the Bank launched products like DCB Privilege Banking, DCB Trio Account, which is the combination of a zero-balance savings account, term deposit and personal accident insurance, DCB Corporate Payroll, etc. During the year 2007-08, the Bank opened 8 new branches and 10 ATMs. They opened DCB Sahyog at Dediapada in Gujarat exclusively for microfinance, which provide direct credit facilities to microfinance borrowers through relationships with MFIs in the region. They launched a 24x7 Customer Care Centre. The Bank formed a strategic alliance with HDFC Ltd for marketing their home loan products. The Bank had been empanelled as a clearing and settlement banker with the National Commodities & Derivatives Exchange (NCDEX) in addition to the Multi Commodity Exchange (MCX). The Operations and Technology division moved to new premises at Vikhroli in Mumbai. In March 4, 2008, the Bank launched their credit card business called 'DCB Advantage Card'. The Bank made a tie up with ICICI Bank in order to extract the best skills and to utilize their experience for a successful execution of the task. As at March 31, 2008, the Bank had 76 branches and 4 extension counters. The Bank has 112 ATMs across the country and the customers can access to a network of 18,000 ATMs in India. In August 2008, the Bank inaugurated new branch in Dharavi in Mumbai. With a vision of strengthening neighbourhood banking, DCB Bank set up a separate vertical in FY 2010 to focus on Traditional Community Banking. The aim is to address the specific needs of the Community and provide personalized solutions wherever possible. In FY 2013, the bank restarted Commercial Vehicle (CV) financing to improve the bank's ability to achieve priority sector lending (PSL) targets. During the financial year ended 31 March 2014, the bank opened 36 new branches, taking the total tally of branches to 130. In the last many years, this is the highest number of new branches installed in one financial year by the bank. New branches were opened in many locations including the states of Andhra Pradesh, Chattisgarh, Madhya Pradesh, Punjab, Odisha and Rajasthan. During the year, the bank acquired over 1,400 new NRI customers. During the year under review, the bank launched domestic debit cards for NRE accounts.In FY 2014, the bank launched India's first co-branded prepaid card for disbursal of small loans by Janalakshmi Microfinance. The product is administered in association with Jana Urban Foundation. The program aims to provide cashless disbursal which has a major positive impact on financial inclusion. During the financial year ended 31 March 2015, DCB Bank opened 24 new branches, taking the total tally of branches to 154. New branches were opened in many locations including the states of Andhra Pradesh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, New Delhi, Odisha, Punjab, Tamil Nadu and Telangana. In addition to existing Visa Debit cards, DCB Bank started issuing Rupay Debit cards in FY 2015. In its trade finance business, DCB Bank started relationship with Habib Bank in Bangladesh, Sri Lanka and United Kingdom in FY 2015.DCB Bank added approximately 1,500 new NRI customers in FY 2015. During the year, credit rating agency CRISIL upgraded the banks' Long Term rating from A-/Stable to A-/Positive. In October 2014, the bank issued 30,432,136 shares through Qualified Institutional Placement (QIP) at Rs. 82.15 per share amounting to Rs. 250 crore. During the financial year ended 31 March 2016, DCB Bank increased its branch network by 44 branches - 22 in Retail and 22 in Agri and Inclusive Banking (AIB). In October 2015, the bank announced its intention to increase the number of branches by 150 in 24 months. In FY 2016, the bank's Branch Operations team simplified and automated several processes in order to improve productivity and provide better customer experience. Risk management and process controls were also strengthened. The bank increased its ATMs from 328 in FY 2015 to 410 in FY 2016. In March 2016, DCB Bank launched India's first Aadhaar based biometric fingerprint ATM on a pilot basis. With regard to Mortgage/Micro Mortgage advances, DCB Bank made tremendous efforts in FY 2016 in enhancing the products, improving processes and controlling portfolio quality. With regard to Loan against Gold, DCB Bank embarked upon a 1 hour loan approval / disbursal process in many branches in FY 2016. Customers were delighted with the new process and gave the bank excellent feedback. In FY 2016, DCB Bank added 23 new relationships in Corporate Banking. As economic conditions continued to be under stress for many sectors during the year under review, the bank exited a few exposures leading to decrease in overall Corporate Banking Advances. As a result of the early warning systems in place and timely management of risky exposures, Corporate Banking portfolio quality remained stable. In FY 2016, DCB Bank acquired approximately 1,300 new NRI customers. In FY 2016, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) and opened 19,413 accounts. The bank has enabled RuPay Debit Cards for PMJDY account holder. In FY 2016, DCB Bank enrolled 5,319 customers under Pradhan Mantri Suraksha Bima Yojana (PMSBY), 3,500 customers under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and 1,228 customers in Atal Pension Yojana (APY). In FY 2016, the bank opened 59,508 Basic Savings Bank Deposit accounts (BSBDA). In FY 2016, DCB Bank introduced new software system for managing Business Correspondent (BC) loans. This software helps maintain detailed information about the borrowers under SHG, JLG and Micro enterprises categories. It provides a common platform to both the bank and BCs for smooth processing of loans and has added immense value by reducing the loan disbursal cycle time. During the financial year ended 31 March 2017, DCB Bank increased its branch network by 64 branches - 30 in Retail and 34 in Agri and Inclusive Banking (AIB). In order to improve the overall performance, controls and customer service, the bank strengthened the organisation structure of managing branch network. The bank's Branch Operations team simplified 42 processes in FY 2017. Simultaneously risk management and monitoring aspects were also strengthened. The Bank increased its ATMs from 410 in FY 2016 to 515 in FY 2017. On the deposit side, DCB Bank introduced a number of new products during the year to address the needs of institutions as well as individuals. One of the highlights of FY 2017 was the launch of DCB Suraksha Deposit - a unique product where customers get insurance cover at zero cost if they opt for longer tenor term deposit (subject to conditions). In FY 2017, as compared to the previous year, Traditional Community Banking Deposits grew by 12 percent and Advances increased by 22 percent. In FY 2017, as part of process improvement initiatives for Loan against Gold, DCB Bank further expanded 'One hour loan approval / disbursal process' in many more branches. The Loan against Gold business slowed down during demonetisations. In FY 2017, DCB Bank acquired approximately 1,683 new Non-Resident Indian (NRI) customers. The NRI deposits achieved growth of 16 percent in FY 2017 as compared to the previous year. In FY 2017, DCB Bank launched its own payment wallet named as 'Cippy'. In FY 2017, DCB Bank added 36 new relationships in Corporate Banking. As a result of the early warning systems in place and timely management of risky exposures, the bank's Corporate Banking portfolio quality remained stable.In FY 2017, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) and opened 26,306 PMJDY accounts as on March 31, 2017. The Bank has enabled Rupay Debit Cards for PMJDY account holders. In FY 2017, DCB Bank was amongst the first banks to offer Unified Payment Interface (UPI), a truly seamless and modern payment option on mobile phone. In FY 2017, Cheque Truncation System process was in-housed resulting in cost savings and reduction in potential errors. On a pilot basis, the printing of debit cards and PIN was also in-housed at NPC, Chennai. In October 2015, DCB Bank had announced its plan to increase its network by 150 more branches in 24 months. This plan was successfully completed by October 2017 and the total number of branches as on March 31, 2018 stood at 318. In April 2017, DCB Bank issued 21,770,000 equity shares through Qualified Institutional Placement (QIP) at Rs 174 per share amounting to Rs 378.80 crore. The Bank has increased its ATMs from 515 in FY 2017 to 533 in FY 2018.During the financial year ended 31 March 2018, DCB Bank added 17 new locations where dedicated sales teams are present for providing Mortgages and Micro Mortgages advances. Although economic conditions were weak in FY 2018, DCB Bank maintained the portfolio quality at an acceptable level in commercial vehicles financing business during the year. In FY 2018, the gold loan front end system 'Gradatim' was relaunched with additional features that had a favourable impact on frontline staff and customer experience. In order to compete with bigger gold loan financing companies, DCB Bank launched the 'One Hour Gold Loan' processing at most of the branches. DCB Bank during the year launched Bharat Bill Payment System (BBPS) which offers integrated and interoperable pan India bill payment services. BBPS is considered to be safe, timely and convenient. During the year under review, DCB Bank launched DCB NiYo Cards in partnership with Finnew Solutions Pvt. Ltd. DCB NiYo Card has the capability to provide seamless compliant payroll benefits to employees. The product has potential to simplify the human resource payroll processes of any organisation. DCB Moneykit Cards was launched in January 2018 in partnership with Sienna Systems Resources Pvt Ltd. This is a distinctive proposition wherein loans get disbursed instantly for purchase of consumer durables or any other merchandise. The card has the unique feature of money on swipe, wherein the customers pay only when the loan limit is utilised. During FY 2018, there was a clear jump in usage of DCB Payless Cards in Point of Sale (POS) and e-commerce. DCB Payless Cards is a unique product offered by the bank and is a preferred card for those self-employed and small businessmen that are unable to provide sufficient income proof or do not have an acceptable credit track record. During the year under review, DCB Bank implemented a revolutionary service 'DCB Remit' that allows online fund transfer from India to over 20 countries including USA, Canada, Australia, UK, UAE and Germany. The transactions can be tracked on smartphone or web. DCB Bank has signed an agreement with Instarem India Pvt. Ltd. for outbound money transfers to individuals from India. In FY 2018, NRI deposits contributed to 8% of the Total Retail Deposits of the bank. During the year, almost 2,000 new NRI customers were acquired and over 3,000 NRI accounts were opened. DCB Bank's Corporate Banking portfolio quality remained stable during the year. In FY 2018, the bank added 47 new relationships in Corporate Banking.In FY 2018, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) In FY 2018, DCB Bank implemented a new Business Internet Banking (BIB) application for business users. The new system has several additional benefits. It offers one time payee registration for all transactions, new cooling period policy on addition of payee, payment to multiple beneficiaries with single One Time Password (OTP), 24X7 funds transfer through IMPS, straight through RTGS funds transfer and scheduling future payments. Status updating of BIB requests through a tracking mechanism has been made available online to branches and CMS service team for improving customer service. During the current year 2018-19, CRISIL Limited upgraded the Bank's rating for Tier II Bonds (under Basel III) to CRISILAA-/Stable and reaffirmed its rating on the Bank's Certificates of Deposit Programme and Short-term Fixed Deposit Programme at CRISIL A1+. The Bank continues to enjoy ICRA A+ (hyb)/ (stable) rating for Basel III Compliant Tier II Bonds Programme and ICRA A1+ rating for Short Term Fixed Deposits Programme and CARE A1+ for Short Term Bank Facilities. In FY 2019, NRI deposits contributed to 8.6% of the Total Retail Deposits of the Bank. During the year, 1,602 NRI customers were sourced and 2,616 NRI accounts were opened. In FY 2019, DCB Bank added 23 new relationships in Corporate Banking.In FY 2019, the Bank made gains by utilizing the trading opportunities in G-Sec presented by declining interest rates in the second half of the year. It selectively invested in a few equity IPOs and booked moderate listing gains. The Bank also invested in medium term AAA corporate bonds and units of liquid mutual funds in order to earn interest income on liquidity mismatches. During the FY2020, the bank has been awarded by Bombay Chamber of Commerce and Industry, Mumbai for Sustainable Environmental Initiatives' for CSR projects. Also awarded for Best CSR Project at Asian Customer Engagement & Forum - ACEF HR & CSR Forum & Awards, Mumbai. Also bagged 'BFSI Digital Innovation Award 2020' in BFSI Technology Conclave by Indian Express. The bank won the Award for SME Finflex Banking system at Finnoviti 2020. The number of branches as on 31 March 2020 stands at 336 [188 Retail branches and 148 branches in Agri and Inclusive Banking (AIB)]. The Bank has 504 ATMs as on 31 March 2020.

DCB Bank Ltd Chairman Speech

As FY 2021 was coming to end, the country was once again hit by an unprecedented and severe Covid-19 second wave. The infrastructure facilities of the country were stretched beyond limits. Despite tremendous efforts taken by both the Central and State Governments, unfortunately, a lot of people got infected, and many lost their lives.

To curtail the spread of infections, lockdowns and disruptions were inevitable which resulted in the economy and livelihood getting impacted especially for the shops, small businesses and self-employed. The Central Government and the Reserve Bank of India took timely steps to help the borrowers and support the economy. It was indeed a very difficult situation for the country and banks.

As you know, your Bank has been consistently following the strategy of targeting self-employed / small business owners. Pandemic disruptions and lockdowns affected the self-employed segment much more than the salaried segment. Consequently, the NPAs and restructured loan book increased sharply for the Bank in Q1 FY 2022. Also, new loan demand was limited due to lack of opportunities in the self-employed category. This resulted in stagnation of the loan book for the first few months of FY 2022. During this difficult period, the Bank's focus was on helping customers within the regulatory framework and managing collections and recoveries. Towards the end of Q2 FY 2022, the situation started to improve, and the Bank started re-building its Balance Sheet while continuing to intensely manage NPAs.

Looking at the collections, recoveries, and new business in the last few months of FY 2022, there are clear signs that the economy is recovering from the impact of pandemic and our country's self-employed segment is once again demonstrating resilience.

I am very happy to share with you that in comparison to the previous year, although effectively we had business opportunities only for three quarters in FY 2022, the Bank achieved Advances growth of 13%, Deposits growth of 17%, CASA ratio of 26.8% and Balance Sheet growth of 13%. Under these unusual and unanticipated external conditions, the Bank's NPAs and restructured loan book remained within acceptable limits. The Bank has made conservative loan loss provisions and the Provision coverage stood at 67.84% as on March 31, 2022.

Since 2009, the Bank has been targeting the self-employed segment. The Bank's portfolio is largely small ticket secured lending. Although NPAs and restructure increased due to Covid-19, the Bank was able to absorb additional credit loss provisions because of strong Operating Profit.

The Bank's capital position remained strong at Tier I of 15.84% and overall, 18.92%.

As we emerge from effectively dealing with the massive headwinds of Covid-19, the Bank is in a good position to meet its growth ambition in the coming years.

I have been part of the Bank's Board since 2015 and I can say that building an institution requires sensible leadership, culture, dedicated team, and strong governance. The process of institution building is gradual, painstaking, demands tremendous energy and patience, take appropriate measured risks within the risk appetite, customer orientation and agility to deal with a dynamic / challenging environment. We are confident we have the ingredients for continuing to build a strong institution.

At the time of writing this, I am delighted to share with you that recently I had the privilege of inaugurating DCB Bank's

400th branch. The milestone branch is located at the bustling historic Azadpur Mandi at Delhi/NCR. This location has a huge potential for the Bank's selfemployed / small businesses target market. Over the next few years, we expect the Bank to continue to build its branch network across the chosen geographies.

India has a large resilient diversified economy. It has withstood the onslaught of Covid-19 and I am confident that despite recent geopolitical disturbances, Indian economy will perform well in the coming years giving opportunities for our Bank to continuously increase its customer base and build a robust business.

I am delighted to be given charge as Chairperson of the Bank by the Board of Directors. I am excited to be part of this journey. I am looking forward to working with the Board and the Management Team to guide the Bank in the coming months.

Rupa Devi Singh
Chairperson (subject to approval of Reserve Bank of India and the Shareholders)
May 07, 2022

   

DCB Bank Ltd Company History

DCB Bank Limited, formerly Development Credit Bank, is one of the new generation private sector banks in India. Keeping in view its inherent strengths, branch network and expertise, the bank's target market is mainly small business owners / self-employed / small business segment (traders, shopkeepers, business owners, MSMEs and SMEs). The bank chose to have limited presence in salaried segment. The bank also distributes Life Insurance, Health Insurance, General Insurance and Mutual Fund products to new and existing customers. As on 31 December 2020, Bank's total distribution network stood at 347 branches and over 500 ATMs across 18 states and 2 union territories. Development Credit Bank was started as a Credit Society in the 1930s. Eventually, Diamond Jubilee Co-operative Bank Ltd merged with Ismailia Co-operative Bank Ltd. In the year 1981, Ismailia Co-operative Bank Ltd was amalgamated with Masalawalla Co-operative Bank Ltd to form the Development Co-operative Bank Ltd. Later, Citi Cooperative Bank Ltd merged with Development Co-operative Bank Ltd. In the year 1995, Development Co-operative Bank Ltd was converted into Development Credit Bank Ltd. During the year 1995-96, the Bank opened new branches at Vapi, Sidhpur, Ahmedabad and Bangalore. During the year next year, they opened the new branches at Mira Road and Rajkot. A total of 11 news new branches were opened during the two financial years of 1999-2001. During the year 2001-03, the Bank opened a new branch at Jharsa in Haryana. During the year 2002-03, the Bank launched mobile banking offering both push and pull options. During the year 2004-05, they launched visa funds transfer and celfill offering mobile recharge through ATMs to even non-customers. Also, they launched 3 new brahces during the year. During the year 2005-06, the Bank raised capital through private placement amounting to Rs. 51.99 crores. They launched some new products, namely Free Style Savings Account, Value Savings and M-Power Current Accounts during the year. During the year 2006-07, the Bank launched products like DCB Privilege Banking, DCB Trio Account, which is the combination of a zero-balance savings account, term deposit and personal accident insurance, DCB Corporate Payroll, etc. During the year 2007-08, the Bank opened 8 new branches and 10 ATMs. They opened DCB Sahyog at Dediapada in Gujarat exclusively for microfinance, which provide direct credit facilities to microfinance borrowers through relationships with MFIs in the region. They launched a 24x7 Customer Care Centre. The Bank formed a strategic alliance with HDFC Ltd for marketing their home loan products. The Bank had been empanelled as a clearing and settlement banker with the National Commodities & Derivatives Exchange (NCDEX) in addition to the Multi Commodity Exchange (MCX). The Operations and Technology division moved to new premises at Vikhroli in Mumbai. In March 4, 2008, the Bank launched their credit card business called 'DCB Advantage Card'. The Bank made a tie up with ICICI Bank in order to extract the best skills and to utilize their experience for a successful execution of the task. As at March 31, 2008, the Bank had 76 branches and 4 extension counters. The Bank has 112 ATMs across the country and the customers can access to a network of 18,000 ATMs in India. In August 2008, the Bank inaugurated new branch in Dharavi in Mumbai. With a vision of strengthening neighbourhood banking, DCB Bank set up a separate vertical in FY 2010 to focus on Traditional Community Banking. The aim is to address the specific needs of the Community and provide personalized solutions wherever possible. In FY 2013, the bank restarted Commercial Vehicle (CV) financing to improve the bank's ability to achieve priority sector lending (PSL) targets. During the financial year ended 31 March 2014, the bank opened 36 new branches, taking the total tally of branches to 130. In the last many years, this is the highest number of new branches installed in one financial year by the bank. New branches were opened in many locations including the states of Andhra Pradesh, Chattisgarh, Madhya Pradesh, Punjab, Odisha and Rajasthan. During the year, the bank acquired over 1,400 new NRI customers. During the year under review, the bank launched domestic debit cards for NRE accounts.In FY 2014, the bank launched India's first co-branded prepaid card for disbursal of small loans by Janalakshmi Microfinance. The product is administered in association with Jana Urban Foundation. The program aims to provide cashless disbursal which has a major positive impact on financial inclusion. During the financial year ended 31 March 2015, DCB Bank opened 24 new branches, taking the total tally of branches to 154. New branches were opened in many locations including the states of Andhra Pradesh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, New Delhi, Odisha, Punjab, Tamil Nadu and Telangana. In addition to existing Visa Debit cards, DCB Bank started issuing Rupay Debit cards in FY 2015. In its trade finance business, DCB Bank started relationship with Habib Bank in Bangladesh, Sri Lanka and United Kingdom in FY 2015.DCB Bank added approximately 1,500 new NRI customers in FY 2015. During the year, credit rating agency CRISIL upgraded the banks' Long Term rating from A-/Stable to A-/Positive. In October 2014, the bank issued 30,432,136 shares through Qualified Institutional Placement (QIP) at Rs. 82.15 per share amounting to Rs. 250 crore. During the financial year ended 31 March 2016, DCB Bank increased its branch network by 44 branches - 22 in Retail and 22 in Agri and Inclusive Banking (AIB). In October 2015, the bank announced its intention to increase the number of branches by 150 in 24 months. In FY 2016, the bank's Branch Operations team simplified and automated several processes in order to improve productivity and provide better customer experience. Risk management and process controls were also strengthened. The bank increased its ATMs from 328 in FY 2015 to 410 in FY 2016. In March 2016, DCB Bank launched India's first Aadhaar based biometric fingerprint ATM on a pilot basis. With regard to Mortgage/Micro Mortgage advances, DCB Bank made tremendous efforts in FY 2016 in enhancing the products, improving processes and controlling portfolio quality. With regard to Loan against Gold, DCB Bank embarked upon a 1 hour loan approval / disbursal process in many branches in FY 2016. Customers were delighted with the new process and gave the bank excellent feedback. In FY 2016, DCB Bank added 23 new relationships in Corporate Banking. As economic conditions continued to be under stress for many sectors during the year under review, the bank exited a few exposures leading to decrease in overall Corporate Banking Advances. As a result of the early warning systems in place and timely management of risky exposures, Corporate Banking portfolio quality remained stable. In FY 2016, DCB Bank acquired approximately 1,300 new NRI customers. In FY 2016, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) and opened 19,413 accounts. The bank has enabled RuPay Debit Cards for PMJDY account holder. In FY 2016, DCB Bank enrolled 5,319 customers under Pradhan Mantri Suraksha Bima Yojana (PMSBY), 3,500 customers under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and 1,228 customers in Atal Pension Yojana (APY). In FY 2016, the bank opened 59,508 Basic Savings Bank Deposit accounts (BSBDA). In FY 2016, DCB Bank introduced new software system for managing Business Correspondent (BC) loans. This software helps maintain detailed information about the borrowers under SHG, JLG and Micro enterprises categories. It provides a common platform to both the bank and BCs for smooth processing of loans and has added immense value by reducing the loan disbursal cycle time. During the financial year ended 31 March 2017, DCB Bank increased its branch network by 64 branches - 30 in Retail and 34 in Agri and Inclusive Banking (AIB). In order to improve the overall performance, controls and customer service, the bank strengthened the organisation structure of managing branch network. The bank's Branch Operations team simplified 42 processes in FY 2017. Simultaneously risk management and monitoring aspects were also strengthened. The Bank increased its ATMs from 410 in FY 2016 to 515 in FY 2017. On the deposit side, DCB Bank introduced a number of new products during the year to address the needs of institutions as well as individuals. One of the highlights of FY 2017 was the launch of DCB Suraksha Deposit - a unique product where customers get insurance cover at zero cost if they opt for longer tenor term deposit (subject to conditions). In FY 2017, as compared to the previous year, Traditional Community Banking Deposits grew by 12 percent and Advances increased by 22 percent. In FY 2017, as part of process improvement initiatives for Loan against Gold, DCB Bank further expanded 'One hour loan approval / disbursal process' in many more branches. The Loan against Gold business slowed down during demonetisations. In FY 2017, DCB Bank acquired approximately 1,683 new Non-Resident Indian (NRI) customers. The NRI deposits achieved growth of 16 percent in FY 2017 as compared to the previous year. In FY 2017, DCB Bank launched its own payment wallet named as 'Cippy'. In FY 2017, DCB Bank added 36 new relationships in Corporate Banking. As a result of the early warning systems in place and timely management of risky exposures, the bank's Corporate Banking portfolio quality remained stable.In FY 2017, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) and opened 26,306 PMJDY accounts as on March 31, 2017. The Bank has enabled Rupay Debit Cards for PMJDY account holders. In FY 2017, DCB Bank was amongst the first banks to offer Unified Payment Interface (UPI), a truly seamless and modern payment option on mobile phone. In FY 2017, Cheque Truncation System process was in-housed resulting in cost savings and reduction in potential errors. On a pilot basis, the printing of debit cards and PIN was also in-housed at NPC, Chennai. In October 2015, DCB Bank had announced its plan to increase its network by 150 more branches in 24 months. This plan was successfully completed by October 2017 and the total number of branches as on March 31, 2018 stood at 318. In April 2017, DCB Bank issued 21,770,000 equity shares through Qualified Institutional Placement (QIP) at Rs 174 per share amounting to Rs 378.80 crore. The Bank has increased its ATMs from 515 in FY 2017 to 533 in FY 2018.During the financial year ended 31 March 2018, DCB Bank added 17 new locations where dedicated sales teams are present for providing Mortgages and Micro Mortgages advances. Although economic conditions were weak in FY 2018, DCB Bank maintained the portfolio quality at an acceptable level in commercial vehicles financing business during the year. In FY 2018, the gold loan front end system 'Gradatim' was relaunched with additional features that had a favourable impact on frontline staff and customer experience. In order to compete with bigger gold loan financing companies, DCB Bank launched the 'One Hour Gold Loan' processing at most of the branches. DCB Bank during the year launched Bharat Bill Payment System (BBPS) which offers integrated and interoperable pan India bill payment services. BBPS is considered to be safe, timely and convenient. During the year under review, DCB Bank launched DCB NiYo Cards in partnership with Finnew Solutions Pvt. Ltd. DCB NiYo Card has the capability to provide seamless compliant payroll benefits to employees. The product has potential to simplify the human resource payroll processes of any organisation. DCB Moneykit Cards was launched in January 2018 in partnership with Sienna Systems Resources Pvt Ltd. This is a distinctive proposition wherein loans get disbursed instantly for purchase of consumer durables or any other merchandise. The card has the unique feature of money on swipe, wherein the customers pay only when the loan limit is utilised. During FY 2018, there was a clear jump in usage of DCB Payless Cards in Point of Sale (POS) and e-commerce. DCB Payless Cards is a unique product offered by the bank and is a preferred card for those self-employed and small businessmen that are unable to provide sufficient income proof or do not have an acceptable credit track record. During the year under review, DCB Bank implemented a revolutionary service 'DCB Remit' that allows online fund transfer from India to over 20 countries including USA, Canada, Australia, UK, UAE and Germany. The transactions can be tracked on smartphone or web. DCB Bank has signed an agreement with Instarem India Pvt. Ltd. for outbound money transfers to individuals from India. In FY 2018, NRI deposits contributed to 8% of the Total Retail Deposits of the bank. During the year, almost 2,000 new NRI customers were acquired and over 3,000 NRI accounts were opened. DCB Bank's Corporate Banking portfolio quality remained stable during the year. In FY 2018, the bank added 47 new relationships in Corporate Banking.In FY 2018, DCB Bank actively participated in Pradhan Mantri Jan-Dhan Yojana (PMJDY) In FY 2018, DCB Bank implemented a new Business Internet Banking (BIB) application for business users. The new system has several additional benefits. It offers one time payee registration for all transactions, new cooling period policy on addition of payee, payment to multiple beneficiaries with single One Time Password (OTP), 24X7 funds transfer through IMPS, straight through RTGS funds transfer and scheduling future payments. Status updating of BIB requests through a tracking mechanism has been made available online to branches and CMS service team for improving customer service. During the current year 2018-19, CRISIL Limited upgraded the Bank's rating for Tier II Bonds (under Basel III) to CRISILAA-/Stable and reaffirmed its rating on the Bank's Certificates of Deposit Programme and Short-term Fixed Deposit Programme at CRISIL A1+. The Bank continues to enjoy ICRA A+ (hyb)/ (stable) rating for Basel III Compliant Tier II Bonds Programme and ICRA A1+ rating for Short Term Fixed Deposits Programme and CARE A1+ for Short Term Bank Facilities. In FY 2019, NRI deposits contributed to 8.6% of the Total Retail Deposits of the Bank. During the year, 1,602 NRI customers were sourced and 2,616 NRI accounts were opened. In FY 2019, DCB Bank added 23 new relationships in Corporate Banking.In FY 2019, the Bank made gains by utilizing the trading opportunities in G-Sec presented by declining interest rates in the second half of the year. It selectively invested in a few equity IPOs and booked moderate listing gains. The Bank also invested in medium term AAA corporate bonds and units of liquid mutual funds in order to earn interest income on liquidity mismatches. During the FY2020, the bank has been awarded by Bombay Chamber of Commerce and Industry, Mumbai for Sustainable Environmental Initiatives' for CSR projects. Also awarded for Best CSR Project at Asian Customer Engagement & Forum - ACEF HR & CSR Forum & Awards, Mumbai. Also bagged 'BFSI Digital Innovation Award 2020' in BFSI Technology Conclave by Indian Express. The bank won the Award for SME Finflex Banking system at Finnoviti 2020. The number of branches as on 31 March 2020 stands at 336 [188 Retail branches and 148 branches in Agri and Inclusive Banking (AIB)]. The Bank has 504 ATMs as on 31 March 2020.

DCB Bank Ltd Directors Reports

Your Directors are pleased to present the Twenty Seventh Annual Report of DCB Bank Ltd (hereinafter referred to as the Bank/Your Bank/DCB Bank) together with the audited accounts for the year ended March 31, 2022 (FY 2022).

In FY 2022, the Bank has posted an Operating Profit of Rs 796.98 crore (FY 2021 Rs 885.81 crore) and a Net Profit of Rs 287.50 crore (FY 2021 Rs 335.79 crore).

Total Assets have increased by Rs 5,238.01 crore and reached Rs 44,840.14 crore as on March 31, 2022 (Rs 39,602.13 crore as on March 31, 2021).

Customer Deposits have increased by Rs 4,176.64 crore and Advances have increased by Rs 3,358.58 crore. Your Bank continues to make significant contribution to Priority Sector Lending (PSL) and has achieved the overall PSL target as required by the Reserve Bank of India (RBI).

The Net Interest Margin (NIM) was 3.56% in FY 2022 as compared to 3.59% in FY 2021 and the Current and Savings Accounts (CASA) ratio stood at 26.8% as on March 31, 2022.

Cost to Income Ratio has increase to 56.0% in FY 2022 from 48.9% in FY 2021. Total Branch network stood at 400 as on March 31, 2022 (352 as on March 31, 2021) and ATM network was 349 as on March 31, 2022 (410 as on March 31, 2021).

Provisions Other Than Tax have decreased to Rs 407.43 crore in FY 2022 from Rs 433.01 crore in FY 2021. Your Bank has been making conservative provision for Non-Performing Assets (NPA) and Loans restructured on account of Covid-19 stress. In addition, the Bank has also been making Floating Provision and provision against Standard Assets.

Gross NPAs have increased to Rs 1,289.93 crore as on March 31, 2022 from Rs 1,083.44 crore as on March 31, 2021. Consequently, Gross NPA Ratio as on March 31, 2022 was 4.32% as compared to 4.13% as on March 31, 2021. Net NPAs have decreased to Rs 573.23 crore as on March 31, 2022 as against Rs 594.15 crore as on March 31, 2021. Consequently, Net NPA Ratio as on March 31, 2022 was 1.97% as compared to 2.31% as on March 31, 2021. The overall NPA Provision Coverage Ratio as on March 31, 2022 was 67.84% (62.35 % as on March 31, 2021).

Return on Assets (RoA) Ratio in FY 2022 was 0.70% as compared to 0.87% in FY 2021. Corresponding Return on Equity (RoE) Ratio in FY 2022 was 7.92% as compared to 9.99% in FY 2021.

Capital Adequacy Ratio (CAR) under Basel III as on March 31, 2022 stood at 18.92% (19.67% as on March 31, 2021).

FINANCIAL SUMMARY

(Rs in crore)

Balance Sheet As at March 31, 2022 As at March 31, 2021 Increase / (Decrease)
Customer Deposits 31,280.26 27,103.62 4,176.64
Inter Bank Deposits 3,411.43 2,600.24 811.19
Total Deposits 34,691.69 29,703.86 4,987.83
[Including Total CASA*] [9,281.08] [6,786.51] 2,494.57
Advances 29,095.78 25,737.20 3,358.58
Gross - NPA 1,289.93 1,083.44 206.49
Net - NPA 573.23 594.15 (20.92)
Total Assets 44,840.14 39,602.13 5,238.01
Net Interest Income 1,357.51 1,286.61 70.90
Non Interest Income 452.04 445.83 6.21
Total Operating Income 1,809.55 1,732.44 77.11
Operating Cost 1,012.57 846.63 165.94
Operating Profit 796.98 885.81 (88.83)
Provisions Other than Tax 407.43 433.01 (25.58)
Net Profit Before Tax 389.55 452.80 (63.25)
Tax 102.05 117.01 (14.96)
Net Profit After Tax 287.50 335.79 (48.29)

* Current and Savings Accounts (CASA)

DIVIDEND

Your Board is pleased to recommend a dividend of Rs 1.00 per equity share of Rs 10.00 each in respect of Financial Year ended March 31, 2022.

MANAGEMENT DISCUSSION AND ANALYSIS VISION

The Bank's vision is to be the most innovative and responsive neighbourhood bank in India serving entrepreneurs, individuals, and businesses. In line with our vision, we began implementing a new strategy in FY 2010.

TARGET MARKET

Keeping in view its inherent strengths, branch network and expertise, the Bank's target market is mainly small business owners / self-employed / small business segment (traders, shopkeepers, business owners, MSMEs and SMEs). The Bank has chosen to have limited presence in the salaried segment. The MSME / SME sector is a vibrant and dynamic sector of the Indian economy and plays a very important role in the growth of the Indian economy. This segment is usually resilient and displays entrepreneurial spirit. Small enterprises create millions of jobs and maintain social stability. The MSME sector plays a pivotal role in the economic and social development of the country. As per estimates the MSME sector contributes around 30% to India's GDP. Some useful information on the MSME sector is given below:

• Number of Working Enterprises: 64 million,

Employment: 111 million individuals

• Urban: 49%, Rural: 51%

• Manufacturing: 31%, Trade 36%, Other Service: 33%

• Sole Proprietor: 96%

(Source: Annual Report FY2020-21 Government of India, Ministry of Micro, Small and Medium Enterprise)

DCB BANK CUSTOMERS

Your Bank provides banking services to a varied base of business owners, self-employed / small businesses for example - Commodity Trader, Gold Trader, Vegetable Trader, Commission Agent, Retailer, Restaurant Owner, Caterer, Baker, Vending Machine Supplier, Consultant, Doctor, Contractor, Interior Decorator, Software Designer, Salon, Beauty Parlour, Printer, Electrical Engineer, Saw Mill, Flour Mill, Rice Mill, Grocery Store, Brick Maker, Builder, Fabricator, Artist, Writer, Auto Repair, Ship Repair, Pharmacy, Computer Specialist, Furniture Maker, Uniform Maker, Garment Shop, Fashion Tailor, Hardware Shop, Agri Processor, Pesticide Dealer, Auto Dealer, Scrap Dealer, Stationery Supplier, FMCG or Consumer Goods Dealer, Tool Maker, Agri Input Dealer, Tractor Dealer, Plastic Manufacturer, Mattress Manufacturer, Water Supplier,

Computer Training Classes, Internet Cafe, Coaching Classes, Tour Operator, Hotel Owner, Transporter, Ticketing Agent, C&F Agent, amongst others. The list of SelfEmployed occupation is endless. The target market is essentially Micro, Small and Medium Enterprises both in Manufacturing and Services. (Please refer to MSMED Act, 2006). Majority of lending to MSME sector qualifies for Priority Sector Lending. A major share of deposits and loans of the Bank are from the self-employed segment.

At the beginning of FY 2022, India was impacted by severe Covid-19 second wave. The infection spread very fast and although both Central and State governments made tremendous efforts to contain the situation, unfortunately the death toll was high. Yet again, to curb the spread of infection, lockdowns and restrictions had to be imposed which resulted in loss of business especially for the small businesses, shops and self-employed (Bank's target segment). The Bank followed a growth strategy underpinned by prudence and caution, prioritizing supporting existing customers in their period of stress and uncertainty. Wherever possible, the Bank within the regulatory framework provided relief / restructure, to eligible borrowers, to tide over the difficult times. Like Covid-19 first wave, after the restrictions were cautiously lifted, economic conditions started improving. Towards Q3 FY 2022, the country was impacted by Covid-19 third wave. However, in comparison to the second wave, the third wave was mild, and the negative impact was limited. By Q4 FY 2022, the economic situation was pretty much back to pre-Covid-19 level and most of the restrictions have been relaxed by both Central and State Governments. As a result of lockdowns affecting the self-employed segment, the Bank's NPAs and Restructured Loans increased in Q1 FY 2022. From Q2 FY 2022, as the Bank stepped up its Collections and Recovery efforts, NPA slippages started declining while recoveries / upgrades steadily improved.

CREDIT RATINGS

During the current year, CRISIL Limited reaffirmed the Bank's rating for Tier II Bonds (under Basel III) to CRISIL AA-/Stable and reaffirmed its rating on the Bank's Certificates of Deposit Programme and Short-term Fixed Deposit Programme at CRISIL A1+. The Bank continues to enjoy ICRA A+/ (stable) rating for Basel III Compliant Tier II Bonds Programme and ICRA A1+ rating for Short Term Fixed Deposits Programme.

AWARDS AND RECOGNITION

Your Bank continued to be recognized for its progress and initiatives in various functions.

DCB Bank won the Gold in ACEF (Asian Leaders Forum & Awards, Branding, Marketing & CSR) 2021. The Bank's CSR partnership project of Achari Kunta in Hyderabad, Telangana with iNaturewatch foundation associated with water conservation, and restoration won in Best Corporate - Non-profit Partnership category.

DCB Bank was given Special Commendation, The CSR Journal Excellence Awards 2021. The CSR Journal recognizes institutional and systematic efforts to address development challenges in the social space. The Bank was felicitated for its efforts in climate change mitigation, protecting biodiversity, restoring land and carbon sequestration over the long term. The Bank had initiated a pilot project to plant 10,000 saplings of indigenous tree species at INS Hamla, Madh Island in Mumbai.

Human Resources

• The Bank continues to be certified by the "Great Place to Work Institute" for building a High Trust and High-Performance culture

• The Bank also received a coveted industry recognition by the Great Manager Institute (GMI) featuring in Forbes India. The Bank made it to India's Top 30 list of Companies with Great People Managers. Two of the Bank's Managers featured in the top 100 list of Great Managers in India.

• The Bank's unique and best practice known as "EORO - Each One Reach One' was recognized by ACEF Asian Leaders Awards in the Best Employee Engagement Gold Category.

• The Bank was featured in CII (Confederation of Indian Industry) in their Compendium of Best Practices in the employee wellbeing category. The Bank's initiatives such as employee benevolent fund, Employee Assistance Program, vaccination drive, enhanced medical benefits etc were highlighted and appreciated.

Information Technology

The Bank was adjudged as Winner in the Ecosystem- Led Innovation Category of Infosys's Client Innovation Award 2021. The Bank was recognized for Open Banking Transformation and Zippi Plus Deposit.

BFSI EXCELLENCE AWARDS 2021

The Bank received the Best Data Management Project award at BFSI EXCELLENCE AWARDS 2021. This was on account of initiatives taken in Robotic Process Automation, Open Banking and Block Chain initiatives.

The Bank's 'ATMCHAIN'- first blockchain based project was recognized as BLOCKCHAIN SOLUTION OF THE YEAR -BANKING 2021 at Alden Global Valye Advisor's INFLECTION Awards.

ASSOCHAM National E-Summit & Awards -April 2021

• Winner for category of Digital Deposits, Private Sector Bank

• Runner up for category of Digital Services, Private Sector Bank

5th NXT CX Summit and Awards for Excellence in Banking Services - February 2022

BRANCH EXPANSION / ATMs

The number of branches, as on March 31, 2022, stood at 400 [221 Retail branches and 179 branches in Agri and Inclusive Banking (AIB)]. Out of which 71 branches are in rural areas and 106 branches are in semi-urban areas. The new branches have a standard, uniform and pleasing look and feel, and they are designed to provide a unique, positive, and seamless banking experience to customers. The Bank had 349 ATMs as on March 31, 2022.

RETAIL BANKING

RetailBanking offers unique products for meeting financialneeds of individuals and businesses. The Bank follows a multi-product approach which results in "all products being offered in all branches" subject to customer demand in the branch catchment area. To remain competitive, the Bank is particular about the quality and timeliness of service delivery. The Bank has a wide range of products that caters to the various needs of the customers.

Term Deposits

DCB Bank is usually amongst the top 5 banks in India in terms of offering attractive Term Deposit interest rates especially for longer tenor retail deposits. DCB Bank offers DCB Health Plus Fixed Deposit product which has unique health insurance benefits at "zero cost" to customers (subject to terms and conditions). During FY 2022, the Bank has substantially changed the liquidity profile and mix of its deposits. The continuous focus was on obtaining granular deposits. Consequently, the top 20 deposits ratio which was at 6.98% at the start of the year further declined to 6.31% at the end of FY 2022.

Mortgage and Micro Mortgage Loans

Mortgage is the prime lending product for the Bank and is contributing more than 45% of bank's advances book. As part of the mortgage business, the Bank offers both Home Loans and Business Loans to self-employed and salaried segments in the neighborhood areas of the Bank's branches. The purpose of these loans, inter alia, are property purchase, home improvement, home repairs, business requirements (purchase of plant and machinery, purchase of stocks, purchase of shops, working capital) and personal expenses such as education, marriage or medical. Micro or small ticket mortgages are most suitable in Tier 2 to Tier 6 locations. Many people in the rural and semi-urban areas derive cash income from informal sectors or trades. At times, many customers do not have sufficient documents to prove their income / repayment capacity for obtaining loans. The Bank has demonstrated the ability to assess the household income for such customers by adopting a method of in-depth personal discussions with the borrowers and co-borrowers. Apart from creating a robust portfolio, the Bank has been able to achieve financial inclusion goals. Most of these micro loans qualify under the Priority Sector Loan (PSL) norms of the RBI. A part of the Bank's portfolio qualifies for long term refinance from National Housing Bank (NHB).

In FY 2022, within the regulatory guidelines, the Bank continued to provide assistance to customers affected by Covid-19 disruptions.

As soon as the Covid-19 second wave abated, the Mortgages business bounced back strongly with increased sourcing from the selected segments and more focus on home loans. The Bank continued to remain cautious and maintained its focus on small ticket secured lending. The Bank expanded its distribution in the Mortgage business by increasing frontline headcount and deepening geographic presence. By the end of FY 2022, new business writing was ahead of pre-Covid-19 volumes.

Construction Finance (CF)

The construction sector is an important contributor to the growth of our economy. Affordable housing in both rural and urban areas is one of the key thrust areas for the Government of India. The implementation of Real Estate Regulation & Development Act, (RERA) 2016 in most states, has brought in much needed transparency in this sector, creating favorable conditions for home buying and financing. The Bank's approach is to focus on reputed builders with a strong track record who are primarily concentrating in the affordable housing segment. At the same time the strategy is to be cautious and limit exposure per builder / project. The Bank has established processes to monitor sales, collections, and utilization of funds towards project completion. Having faced the brunt of Covid-19 disruptions until June 2021, the housing construction sector responded very well to the enhanced demand from home buyers. The country witnessed many new projects launches during FY 2022 with very robust buying in the affordable and mid-segment housing units across most of the key geographies. The Bank expects ample opportunity in lending to affordable and mid-segment housing projects in line with Government of India impetus on addressing the credit gap / housing shortage in the affordable housing sector.

Commercial Vehicle (CV) Loans

Commercial Vehicle Loans (CV) significantly improves the PSL composition in the Bank. Most of the CV portfolio is categorised as PSL. This facility is offered across 110 locations. The CV industry have been facing headwinds on account of weak economic conditions and pandemic. Recently the sector is also impacted by raising fuel prices. CV industry have been among the worst affected by Covid-19, impacted more than 90% of customers. However, the CV sector is on the path of recovery post Q3 FY 2022. The Bank's CV frontline reached out to each customer through daily visits / calling. In a sensitive and sensible manner, the Bank offered relief to various customers within the regulatory framework. The Bank believes that the CV business, which is integral to the growth of the economy, will see revival in the times to come.

Loan against Gold

Loan against gold is offered in most of the branches of the Bank. The Bank has focused on improving customer experience and service by continuously investing in process improvements through in-housing of valuation process and significant overhaul of the front-end system used for loan processing. Most of the verification and validation processes have been automated leading to faster turnaround and improved customer experience. The bank has invested to improve control and risk mitigation processes.

Insurance and Mutual Funds Distribution

The Bank has corporate agency tie-ups for distribution of life insurance, health insurance and general insurance. The Bank also has referral tie ups for mutual fund distribution. This enables the Bank to deepen customer relationships in addition to increasing fee income.

Traditional Community Banking

In FY 2010, with a vision of strengthening neighbourhood banking, the Bank set up a separate vertical to focus on Traditional Community Banking. The aim was to address the specific needs of the vintage neighbourhood community customers and to provide personalized solutions wherever possible. This perhaps is the purest form of neighbourhood banking and is directed towards addressing small credit needs such as education, personal, business and working capital.

Non-Resident Indian (NRI) business

The Bank has NRI customers from 130 countries, which contribute to 9.26% of the total customer deposits.

Government business (Collection of Direct and Indirect Taxes)

The Bank has been authorised by the Reserve Bank of India, Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs, Controller General of Accounts and Ministry of Finance to collect various kinds of Direct and Indirect Taxes. After technical integration, DCB Bank customers will be able to pay their Direct and Indirect Taxes through Mobile banking or Internet banking platforms as well as through all our branches, resulting in immense ease and convenience for customers.

COLLECTIONS AND RECOVERIES

Collection Team operates out of 250 locations with a hub and spoke model. Being a critical and important function team has developed robust capabilities to collect overdue payments and ensure portfolio quality across products. Extensive use of data analytics to improve predictability has been critical in improving the productivity and performance of the unit.

During the Covid-19 second wave, the Collections team was in regular touch with the customers to understand difficulties faced by them and wherever possible extend relief / support within the regulatory framework. The Collections team also provided financial education on default, moratorium etc to help customers tide over difficult times. The Collections team actively embraced digital payment options to reduce face-to-face (for health and safety) interactions and provide convenience to customers.

STRATEGIC ALLIANCES

One of the key strategies of the Bank is to enter alliances with entities whose products and services enable the Bank to improve customer acquisition and retention. Apart from new and enhanced products alliances help in speed to market.

The various strategic alliances and business association of your Bank is given below:

Bancassurance

Name of the Partner Type of arrangement
Aditya Birla Health Insurance Company Ltd Corporate Agency for insurance sales
Aditya Birla Sun Life I nsurance Com pany Ltd Corporate Agency for insurance sales
HDFC Life Insurance Company Ltd Corporate Agency for insurance sales
ICICI Lombard General Insurance Company Ltd Corporate Agency for insurance sales
Royal Sundaram General Insurance Company Ltd Corporate Agency for insurance sales
Service Partners
Name of the Partner Type of arrangement
Euronet Services India Limited ATM and Switch Management
Business Alliances
Name of the Partner Type of arrangement
Aditya Birla Finance Ltd. Lending Business
Fintech Alliances
Name of the Partner Type of arrangement
Finnew Solutions Private Limited (NiYo) Global NiyO Card Management
Greenizon Agritech Consultancy Private Limited Lending Business

Trade Receivables Discounting System (TReDS) Alliances

Name of the Partner Type of arrangement
Mynd Solution Private Limited (M1xchange) Lending on TReDS Platform
Receivables Exchange of India Ltd (RXIL) Lending on TReDS Platform
A. TReDS Limited (Invoicemart) Lending on TReDS Platform

CORPORATE BANKING (CB)

The Bank's intention is to have a limited presence exposure Corporate Banking. This business operates across India with regional offices in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. The objective is to provide a complete range of commercial banking solutions including Foreign Exchange, Trade Finance and Cash Management. The Bank has a robust underwriting and credit system to address the inherent risks in Corporate Banking. The emphasis is on building a secured loans portfolio and creating long term relationships with high quality large and mid-corporates.

Corporate Bank during the year maintained a stable loan book while continuing to build on the short-term products. This unit is also responsible for providing liquidity through deposits and achieved robust growth in the deposits momentum which is likely to carry on in the coming years. The number of products per customers also increased thereby improving depth.

The intensity and frequency of regular review of exposures continued enabling identification of emerging risks in a timely manner. The focus is to continuously improve understanding of the borrower's business/prospects, ensuring right mix of products, enhance analytics, strong promoter connect, cash flow understanding and tracking. Corporate Banking portfolio quality remained stable during the year.

In FY 2022, the Bank added 30 new customers and leveraged existing customer relationships. Your Bank understands that the RMs must have in-depth knowledge of various industries and corporates. To meet this need, the Bank has introduced and reinforced RM Knowledge Improvement Programs wherein information on various industries, corporates, credit ratings etc are shared with the RMs on a regular basis.

AGRI AND INCLUSIVE BANKING (AIB)

AIB is a separate unit with the main aim of achieving financial inclusion, PSL and enhancing the Bank's footprint in the Rural and Semi Urban areas. At the end of FY 2022, AIB had 179 branches in 13 states of India. There are many opportunities to offer simple innovative products backed by superior technology in the Rural and Semi Urban areas of India. Many of the new branches are in Tier 2 to Tier 6 locations. There is a constant endeavor to cater to underbanked and unbanked population of the country through a wide range of products, for example, zero balance savings account, small recurring deposit account, small loans to match the income and cash flow cycle. AIB also coordinates the entire PSL efforts for the Bank and is primarily responsible for achieving the financial inclusion targets.

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

In FY 2022, the Bank actively participated in PMJDY program. The Bank had 34,362 PMJDY accounts as on March 31, 2022. The Bank has enabled Rupay Debit Cards for PMJDY account holders.

Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY)

The Bank successfully reached out to unbanked and economically weaker population through PMSBY, PMJJBY and APY programs that are designed to bring social security. Your Bank had 5,733 customers under PMSBY, 2,905 customers under PMJJBY and 4,719 customers in APY as on March 31, 2022.

BSBDA

BSBDA has replaced "No frills account". This is a wonderful product for achieving financial inclusion especially for those who have limited transaction needs in the low-income group. The Bank had 45,493 BSBDA accounts as on March 31, 2022.

Kisan Mitra

"Kisan Mitra" as the name suggests, is a deposit product, which fulfils the requirement and enhances the savings habit in rural areas. It is a product specially designed for farmers. It is a modified Savings Account with zero account opening amount and no Average Quarterly Balance maintenance charges.

Retail Agriculture Loan and Kisan Credit Card

To meet the credit needs of the farmers, the Bank has retail agriculture products like Kisan Credit Card that aims at providing adequate and timely credit support to the farmers for crop cultivation and allied activities. Under the KCC program, the Bank offers Cash Credit to farmers for purchasing seeds, fertilizers, pesticide for crops cultivation and Term Loan facilities for land levelling, irrigation and purchasing farm equipment.

Tractor Loans

Tractor Loans are an integral part of the total agricultural equipment sector and is an direct indicator of growth in the agricultural sector. The Bank has steadily built its business across Tier 2 to Tier 6 branches. Tractor loans helps the Bank to partly meet PSL targets for agriculture and small and marginal farmers set by the RBI. Rural economy has remained more or less despite Covid-19 disruptions and the Bank has expanded in new locations that has benefited small & marginal farmers.

Microfinance Institutions (MFIs) and Business Correspondents (BCs)

The Bank lends directly to MFIs who in turn lend to end borrowers. Over time, the Bank has created a network of MFI relationships across India. In a few states of India, the Bank is also providing Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) unsecured loans through BCs for economic activities. Group loans from bank has enabled unprivileged customers to avail small loans from the banking sector instead of high-cost borrowing from money lenders. These loans are usually provided to small farmers and weaker sections mainly in rural areas. To support the growth, Bank has an efficient software system for managing BC Loans. This software helps maintain adequate information about the borrowers under SHGs & JLGs. It provides a common platform for both, Bank and BC for smooth processing of loans and has added immense value by reducing the loan disbursal cycle time. The Covid-19 pandemic disruptions resulted in increase in NPAs in the BC MFI loans. The Bank took several steps to address the various issues and put the BC lending back on track.

CO-LENDING PARTNERSHIPS

Co-lending is a unique concept enabled by the RBI. The Bank's intention is to partner with NBFCs that may be offering products not currently offered by the Bank or segments not served by the Bank. In FY 2022, the Bank has entered co-lending partnerships with two leading NBFCs for Gold Loans. Co-lending is likely to be an integral part of Bank's business growth plans in the coming months.

ALTERNATE CHANNELS AND DIGITAL BANKING

Phone Banking

In FY 2022, the Bank's Customer Care Associates attended to approximately 86,000 calls per month. Despite the pandemic disruptions, the Call Center maintained 100% uptime. The Bank also upgraded its technology to enable Work from Home (WFH) capabilities. With the help of technology and training, Bank was able to seamlessly redirect calls to branch staff to achieve load balancing of calls at the Call Center. This was unique initiative which helped to achieve continuous service to customers, job enrichment to branch staff and cost efficiency.

Bank has also upgraded its technology to SIP based on traditional PRI based, thus improving the clarity of voice, improving the connect time and enhancing the uptime. Considering the pan India presence, the Bank has ensured that its Customer Care Associates can interact with the customers in 8 languages (English, Hindi, Gujarati, Kannada, Marathi, Odiya, Tamil and Telugu). The Customer Care unit conducts programs such as 'Voice of Customer' for effective complaint resolution and process improvements. One of the key measures initiated is customer retention calling team was to contact customers to restart using the Bank's services and do a deep dive to understand issues that may have been faced by customers. It is a window provided to the customers to provide feedback which are then relayed to the various business and functions corrective action.

ATMs

The Bank has 349 ATMs as on 31st March 2022. The Bank ensured that ATM uptime was maintained at above 90% despite ground level challenges on account of pandemic. The Bank has reduced several unviable and unprofitable ATMs during the year. The Bank has implemented Win Win 10 operating system, TLS, and Hard Disk encryption in ATMs.

DCB Mobile and Internet Banking

The Bank's customers, more than 130,000, are actively using the new and improved Mobile Banking App. The users have given a rating of 4.6 which is "best in class" amongst the peers group. The new version of the app is multilingual (12 languages) and also has Gold Loans.

DCB Internet Banking is also used by more than 60,000 retail and corporate customers. Internet Banking platform is rich with plethora of digitally managed services, which has reduced the need to visit branches. The platform is aligned to service the HNI customers by offering even higher limit for channels.

DCB Unified Payment Interface (UPI)

Lockdown and restrictions have further given boost to UPI channel which has now become one of the most popular digital mode for small transactions. The Bank's UPI transactions have registered 116% growth in FY 2022.

DCB Open Banking

The Bank has a wide range of Application Programming Interface (APIs) to integrate the Bank systems in a seamless manner with alliance partner.

DCB Debit Cards

The Bank continuously focusses on increasing Debit Card usage and constantly enhancing its security features like we have stopped fallback transactions to avoid Card skimming cases, we have restricted our Card transactions made through non EMV compliant ATMs, along with that we have implemented BIN level limit & velocity control at NPCI & Visa under program TFD (Tailored Factor Defence) & GDC (Gross Debit Cap). Various validation and channel control as instructed by RBI in guideline "Enhancing Card security" are implemented on online Banking channels for easy use by customers.

The Bank from time to time, the Bank also offers seasonal promotional benefits such as healthcare, insurance etc.

DCB Niyo Global Cards

DCB Niyo Global Card is a Debit Card issued to DCB Niyo Current Account holders. This program is uniquely designed such that unlike forex cards, frequent top up of the card is not required since the card is linked to the Current Account. Card holders are offered security features to switch on or off card usage, change transaction limit and block or unblock the card. Also, the DCB Niyo Global Card provides exchange rates which are competitive, making the product a compelling proposition.

TReDS

In FY 2022, the Bank commenced participation on Trade Receivables Discounting System (TReDS), a unique digital capability that provides assured and faster financing to MSMEs / SMEs who are providing goods and services to larger companies. TReDS is improving flow of finance to MSMEs / SMEs. During FY 2022, the Bank has financed more than 500 MSMEs (almost 6,000 invoices) in TReDS platform. Financing on TReDS also qualifies as PSL.

DCB Debit Cards

The Bank continuously focusses on increasing Debit Card usage and constantly enhancing its security features. Instead of using static password, Debit Card users can complete their online payments with OTP. Debit Card users have security features enabling customers to activate or deactivate their Card on POS / ATM / online channels, customers can also change transaction limit and block or unblock their card. The Bank has an exciting "cashback" program to delight customers who increase their card usage provided the customers maintain the stipulated average minimum balance. In addition, from time to time, the Bank also offers seasonal promotional benefits such as healthcare, insurance etc.

TRANSACTION BANKING

Cash Management Services (CMS)

The Bank provides Corporates, MSME/SME and Retail customers sophisticated and cost-effective CMS. This helps customers manage their collection and payment logistics with ease. The Bank has 7 vendors for CMS cheque collections across India. The Bank has upgraded the CMS system for both Payments and Collections enhancing its features and benefits. At the end of FY 2022, the Bank had 5,579 active customers using the CMS facilities.

Business Internet Banking (BIB)

The Bank offers state of the art BIB product especially designed for MSME/SME customers. The adaptive and responsive feature of the application makes it user friendly for customers across devices. At the end of FY 2022, BIB facility had 31,887 users

TREASURY, MONEY MARKET AND FOREIGN EXCHANGE

Treasury

Treasury actively manages liquidity, compliance with important regulatory tools- CRR & SLR, trading in fixed income securities & currencies, and investment in Initial Public Offers (IPOs). It also shares the responsibility of interest rate risk management of the Bank.

In FY 22, the Bank made gains in a cautious manner by utilizing the trading opportunities in G-Sec presented by rising yields and policy rate. The Bank selectively invested in equity IPOs and booked profits by way of listing gains.

Money Market

India's Gross Domestic Product (GDP) grew by 6.90% on annualised basis and 3% on two year CAGR basis. Economic activity seems to be recovering quickly after the Covid-19 third wave in December 2021 / January 2022. February 2022 CPI inflation rose to 6.07% which is the above 6% tolerance level of RBI.

Globally, the interest rate and liquidity back drop are turning adverse in the face of rising inflationary pressures. Indian market rates have also inched up in past three months. RBI has so far kept the policy rates (Repo: 4.00%, Reverse Repo: 3.35% and MSF rate: 4.25%) unchanged along with the accommodative policy stance.

However, the market seems to have already discounted possible rate hike. The effective operating Reverse Repo Rate has increased from 3.37% to 3.90% under the Variable Reverse Repo Rate (VRRR) system. The 10 Years Benchmark G Sec which was at 6.15% at the beginning of FY 2022, touched high of 6.99% in February 2022 and was trading at 6.80% in the third week of March 2022.

Foreign Exchange

Covid-19 second wave hit India hard at the start of FY 2022. The Indian Rupee which was at 73.50 against US Dollar at the beginning of the first quarter weakened to 75.30 by end of the first quarter. But as the second wave plateaued, supply disruptions around the world and accommodative monetary policies from major central banks caused inflation. The Federal Reserve System (Fed) started hinting at raising interest rates. As a result, US Dollar Index rose to 99. On February 16, 2022, Fed increased its rate by 25 basis points and few more increase in rates may be expected during the year 2022. This may have a contagion effect on other country / global interest rates.

As of now, given India's economic environment, RBI appears to be preferring an accommodative stance to support growth. The Indian Rupee has steadily weakened against the US Dollar in line with the strengthening of US Dollar Index. Towards the end of the year, the Ukraine war and geo-political tensions resulted in spike in crude oil price and the Indian Rupee hit an all-time high of 77.20 against the US Dollar.

Alternative Reference Rate (ARR) for foreign currency loans: LIBOR ceased to be benchmark rate from 31 December 2021. The Bank shifted to ARR before LIBOR ceased to exist. It ensured seamless flow of foreign currency assets and liabilities. Shifting to ARR was key to superior customer service as it did not disrupt flow of foreign currency denominated credit. The Bank has been one of the earliest movers in this segment.

RISK MANAGEMENT

Risk is an integral part of the banking business and the Bank's aim is to maintain portfolio quality by making appropriate risk/reward trade-offs. The Bank inter alia is exposed to credit, concentration, market, country and counterparty bank exposure, liquidity, operational, fraud and reputation risk. The Board of Directors of the Bank has oversight of risks assumed by the Bank and has delegated its power to manage risks to Risk Management Committee (RMC) of the Board.

Credit Risk

The Credit Risk unit ensures alignment with the objectives of achieving growth while maintaining portfolio quality by making appropriate risk / reward trade-offs. The idea is to ensure long-term sustainable performance across business cycles. On-going efforts are made to improve risk assessment and controls. Credit Risk over time has developed capabilities to assess the risks associated with various products and business segments. As far as possible, efforts are made to standardize the entire process pan India while considering geographic nuances. The Bank has implemented a rating model that considers both quantitative and qualitative factors and produces a rating that becomes one of the key inputs to credit decisions. To continuously improve the quality of the portfolio, the Credit Risk unit uses SAS analytics and has created several insightful models that helped in refining the product offering, choosing the target segment of customers, collections and recoveries. Key processes in credit underwriting were examined and duplication was reduced to improve speed of processing. Periodic portfolio reviews were conducted with the business units that helped improve portfolio quality.

Concentration Risk

Concentration risk is monitored and managed both at the customer level and at the aggregate level. The Bank, inter alia, monitors portfolio concentrations by segment, product, business, ratings, borrower, group, sensitive sectors, unsecured exposures, industry, and geography. The Bank adopts a conservative approach within the regulatory prudential exposure norms.

Market Risk

The Bank has an established process to measure, monitor and manage Interest Rate, Exchange Rate and Equity Risk as part of Market Risk Management. Besides the usual monitoring of Structural Liquidity, Interest Rate Sensitive Gap limits and Absolute Holding limits, the Bank also monitors interest rate risks using Value at Risk limits. Exposures to Foreign Exchange and Capital Markets are monitored within pre-set exposure limits, margin requirements and stop-loss limits.

Country Exposure Risk and Counterparty Bank Risk

The Bank has established specific country exposure limits which is capped at 15% of its Capital Funds. The limit also depends upon rating of individual countries. The Bank mitigates risks using insurance cover available through the Export Credit and Guarantee Corporation (ECGC), where appropriate.

The Bank has established framework for setting up of limits for counterparty banks, basis their rating and monitors counterparty bank exposures against the approved limits.

Liquidity Risk

As part of the liquidity management and contingency planning, the Bank assesses potential trends, demands, events and uncertainties that could result in adverse liquidity conditions. The Bank's Asset Liability Management (ALM) policy defines the gap limits for the structural liquidity and the liquidity profile is analysed on both static and dynamic basis by tracking cash inflow and outflow in the maturity ladder based on the expected occurrence of cash flow. The Bank undertakes behavioural analysis of the non-maturity products, namely CASA, Cash Credit and Overdraft accounts on a periodic basis to ascertain the volatility of balances. The renewal pattern and premature withdrawals of Term Deposits and drawdowns of un-availed credit limits are also captured through behavioural studies. The liquidity profile is estimated on an active basis by considering the growth in Deposits, Advances, and investment obligations. The concentration of large deposits is monitored on a periodic basis. Emphasis has been placed on growing Retail Deposits and avoid as far as possible Bulk Deposits. The Bank periodically conducts liquidity stress testing.

Operational Risk

Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or external events. The Bank's operational risk management framework is defined in the Operational Risk Management Policy approved by the Board of Directors. While the policy provides a broad framework,

Operational Risk Management Committee (ORCO) oversees the operational risk management in the Bank. The policy specifies the composition, roles, and responsibilities of the ORCO. The framework comprises identification, assessment, management and mitigation of risks through advanced tools and analysis.

Process Review

The Bank strives to continuously improve process controls and customer satisfaction. The Bank has a separate cross functional committee - Management Committee for Approval of Processes (MCAP). In general, new processes are subjected to review by MCAP. The Committee is tasked with identifying operational and compliance risks in new processes and ensuring that steps are taken to mitigate risks. Also, MCAP, on an ongoing basis reviews and approved existing processes for further improvement. In the FY 2022, 85 processes were reviewed and approved by MCAP.

Reputational Risk

The Bank pays attention to issues that may create reputational risks. Events that can negatively affect the Bank's reputation are handled cautiously ensuring utmost compliance and in line with the values of the Bank.

Information / Cyber Security Risk

The Bank operates in a highly automated environment and makes use of the latest technologies to support various operations. We have in place a robust governance framework, information security practices and a business continuity plan to mitigate information technology and cyber security related risks. The Bank ensures that it's Information and Cyber Security policies are updated regularly and implemented to ensure protection of customer sensitive information, transactions integrity, availability of banking services and be resilient to risks from an ever changing cyber threat landscape. The Bank has a 24x7 security operations centre to monitor security alerts and taking immediate response and recovery actions..

IMPLEMENTATION OF BASEL III GUIDELINES

In accordance with the RBI guidelines, the Bank has migrated to Basel III capital adequacy disclosures with effect from Q1 FY 2014. The Bank continues to review and improve its risk management systems and practices to align with industry best practices. The Bank has implemented Standardized Approach for Credit Risk, Standardized Duration Approach for Market Risk and Basic Indicator Approach for Operational Risk.

INFORMATION TECHNOLOGY (IT)

FY 22 has seen increased dependence on digital technologies for banking needs. DCB Bank is looking forward to adopting emerging technologies like AI/ ML, Blockchain, IoT, Edge Computing, Robotic Process Automation, API Banking, Metaverse, conversational banking, Big Data to bring much more needed futuristic customer services, newer business models, operational excellence with automation.

Bank has been already progressed on various such initiatives through innovation, collaboration and integration its services with fintech, startup and partner ecosystem to offer customers newer and efficient technologies for better, convenient and personalized banking experiences

Following were some of key initiatives during FY 2022.

• aunched fully digitized end to end customer on boarding product (CUBE), for quicker and seamless onboarding process.

• Implemented a new and scalable Payment System for NEFT/ RTGS

• Online Dispute Resolution for UPI Payments

• Launched WhatsApp Banking extending specific services to customers.

• Assisted Journey for customers using Zippi - Cobrowsing solution using Cogno.AI to help customers online during onboarding process.

• NPA Automation as per IRAC norms.

• Implemented Social Command center - This is to scan across different social networking sites and to respond to specific requests by our customers / prospects

• Implemented international SMS alerts to customers who are outside India

• Paperless E joining kit for new employees

• Added several unique / new features in New Mobile Banking Application that enhanced customer experience including Multilingual menus

• Enhanced Self Service Kiosk with aadhar authentication to provide more STP services.

• Enhanced DR site with extended capability to have needed resilience and recovery.

• Internet Banking Enhancements - 25 + Feature & Digital Payment Security Controls like Third Party Verification, Connected Banking, Income Tax 2.0

• New Mobile Banking and Enhancements like Card Management, MPIN Management, Multilingual Support

BUSINESS INTELLIGENCE UNIT (BIU)

The core objective of BIU is to support all businesses and functions to make decisions using data analytics. The Bank has a scalable analytical stack in areas of Big Data, Machine Learning and Deep Learning comprising of an Enterprise Data Lake and GPU servers. The analytical platforms used in the Bank include SAS Viya, R, Python and Spark. This has assisted businesses and functions in several "Use Cases" in the field of Machine Learning and Artificial Intelligence such as building predictive models like default behaviour scorecards, using techniques such as time-series forecasting and optimisation for cash loading at ATMs, text mining and NLP for sentiment analysis, Big Data capabilities for analysing behavioural patterns for campaigns, product selection, ADF submissions, etc. amongst other initiatives combining power of Analytics and Technology.

OPERATIONS

Operations unit was once again put under real "stress test" due to the disruptions of Covid-19 second wave. The character and zeal of the employees in Operations units is a testament of fact that there was no major disruption of customer services / operations during FY 2022. Operations continues to focus on automation to serve customers faster and more efficiently. New state- of-the-art customer on boarding software "CUBE" was implemented which has built in automated checks and facilitates customer account opening within a few minutes while providing a superior on boarding experience to the customers. Several new initiatives to bring about transformational changes to processes using technology as an enabler were implemented during the year. Centralized Clearing platforms and applications were revamped to make the service more robust and resilient. Quality assurance functions were further strengthened for continuous improvements to ensure consistency and predictability in services while keeping a close watch on costs, productivity, and operational excellence.

Grooming next generation leaders and creating second line leaders across various unit is a key focus area in Operations and during the year two employees from Operations featured in the India's Top 100 Great People Managers' List of 2021."

INTERNAL AUDIT (IA)

IA function has employees with varied domain background and experience. The IA team comprises of professionals, experienced bankers, specialists, and "freshers". IA function reports into the Audit Committee of the Board (ACB) which constitutes members with strong domain and

audit knowledge. ACB oversees the IA function, monitors performance, and provides regular guidance for improving control and compliance. During FY 2022, the IA Adopted three models of audits namely remote, hybrid (limited review through physical presence at branches and units with detailed remote data analysis) and complete onsite audits to continue doing audits through the year. The IA team makes use of data analysis in the audits through use of SAS. In FY 2022, IA conducted 178 branch audits, 31 periodic audits and 9 IT audits. IA team members attended multiple online training programmes for continuous enhancement of knowledge and audit methodology.

VIGILANCE

The Fraud Risk Monitoring (FRM) unit has been enhanced through inclusion of additional data points into the review mechanism. The scope and coverage have also been expanded with 24x7 monitoring. The Bank is enabled fraud detection across channels with the aim of early detection of possible fraud transactions / usage. Through process improvements, the Vigilance unit has improved reporting, investigation and response to queries received from various law enforcement agencies. The Vigilance unit had continued to conduct fraud risk awareness using online training sessions. FRM and Vigilance units have continued to identify process gaps, (if any), in respect of fraud risks and provided recommendations for fraud prevention and detection. The unit has created training and awareness modules on cyber fraud for employees and customers.

COMPLIANCE

The Bank's Compliance unit is independent of business and operation functions. The Compliance function has created procedures and checks to ensure compliance with applicable regulations. In addition to ensuring timely submission of various returns to regulatory and statutory authorities, the Compliance unit ensures that the Bank's internal procedures and processes are in adherence with the applicable regulatory and statutory guidelines. The Compliance unit is also responsible for AML / KYC monitoring and for executing the same, the Bank relies on advanced software and analytics. Within the Compliance function, a separate unit for Compliance Monitoring and Testing has been created to carry out compliance testing on an ongoing basis. This unit also provides compliance risk assessment to various units / functions..

HUMAN RESOURCES (HR)

The Bank believes that employees are the driving force for business growth, branding, and customer satisfaction. Employees are an invaluable asset who deliver sustainable performance and shareholder value.

During Covid-19 second and third wave, the Bank made systematic efforts to ensure health and safety of employees while ensuring continuity of business operations. Several activities were carried out digitally to maintain social distance and reduce crowding.

The Bank's HR is built on four pillars.

Build

After the end of Covid-19 second wave, the Bank revved up its growth engines which required HR to step up hiring. By the end of FY 2022, the Bank's headcount was 8,077 (as compared to 6,432 by end of FY 2021).

Prioritising internal talent for elevation has always been our motto. This year we have been able to provide growth opportunities within the Bank to 470 employees vis-a-vis 239 employees last year.

The Bank continued its flagship B-school competition that has been recognized as one of the best practices in the industry. The Bank scaled up "The Top Recruit" program and campus engagement initiatives across various regions, covering around 8,075 participants from 200 B- Schools in cities like Delhi, Mumbai, Pune and smaller towns in India.

The Bank launched many digital applications for assisting employees during FY 2022.

The Bank has vastly improved its Social Media presence and it is noteworthy to mention that the Bank has over 2.74 lakh followers as compared to 1.61 Lakh followers in the previous year on Linked In, which is a major source of employer branding and attracting talent

Develop

The Bank continued to provide training through classroom and online / e-learning to employees covering key compliance modules like Ethics, POSH, Gender Sensitization, Code of Conduct, Capacity Development and AML/ KYC.

• During the year Bank employees completed over 253,670 hours of e learning.

• "Olympiad" a quiz covering products, processes and compliance was initiated in FY 2022 to continuously strengthen the culture of compliance. Initiatives such as "Project Prayas" and "Project First Time Right" helped employees to build on their learning and help them to appreciate / address risk issues proactively.

• Masterclass on Leadership sessions, ABCT - Anybody Can Train, Skill Pill and DCB Podcast continued to be digital interventions where senior management and employees shared their insights on a variety of subjects with a large section of employees.

• Signature interventions like RISE and ASPIRE are running for over 9 years. These programs have helped create a talent pool to take up leadership roles within the organization.

• Capacity Development initiatives through internal and external certification especially in the areas of risk management and credit covered more than 90% of the eligible population. Cyber security programs were conducted for senior management employees with IDRBT.

• Women Leadership training opportunity in partnership with XLRI Jamshedpur was provided to women leaders from select units to equip them for leadership roles.

• One of the Bank's flagship initiatives SPEAK (employee satisfaction survey for supervisors) recorded participation of 100%.

• Talent Management and Succession Planning with several initiatives such as 360-degree feedback and individual development plans were implemented

Care

• The Bank conducted special programs for supervisors to be aware of and report instances of potential mental wellbeing issues amongst teammates to provide timely assistance wherever needed.

• During Covid-19 pandemic, emotional well-being assumed greater importance for which wellness sessions were organized for employees under our Employee Assistance Program wherein external professional assistance was provided.

• Covid-19 vaccination drives were conducted pan India for employees and their immediate family members

• 7 Days additional Covid-19 recovery leave was provided to employees who were affected.

• Doctor on Call services were made available for employees and their family members

Engage

• The Bank has a regional recognition program called "DCB Spotlight" for felicitating top performers in different regions. In FY 2022, in the presence of over 2,000 virtual audience, the Bank recognized more than 500 employees.

• The Bank's quarterly newsletter, "High Decibel" is a communication channel where employees contribute articles of personal experience and professional achievements. The same is also used for communicating the latest updates, events, and happenings in the Bank.

• "Hour HR" (live radio show which is an Industry recognized program) a unique communication platform for our employees to interact with the HR team and seniors directly.

• Signature employee connect program" Each One Reach One(EORO) helped employees to rate their satisfaction with respect to Job, supervisor, work environment. A similar survey for Supervisor helped gather feedback with reference top helpfulness, care, development and approachability.

• The Bank launched a "Women@DCB BANK" series where our senior female leaders spoke of their secrets to success

Corporate Social Responsibility (CSR)

The Bank's CSR thrust areas are Water, Waste Management, Renewable Energy, Recycling, Supporting Tech Incubators, Preserve Archaeological and Historic Sites, and Disaster Relief. CSR and HR team work together to engage employees in tree plantation, habitat restoration, clean-up of parks, lakes, beaches, and water bodies. In FY 2022, despite Covid-19 disruptions, wherever possible, within Covid-19 guidelines, the Bank engaged large number of employees in CSR activities.

CUSTOMER SERVICE

Delighting customer in every interaction is the core aim of the Bank. On a regular basis, customer complaints and satisfaction levels are monitored by the Managing Director & Chief Executive Officer along with the Senior Management team. The Bank has constituted an independent "Service Excellence" team to analyse customer complaints, identify root cause for service issues, make process improvements and work with the various businesses and functions to continuously enhance service levels. The Bank has an "Integrated Centralised Complaint Management" system and standards to ensure that customer queries and complaints addressed in a timely manner.

The Bank continues to make steady progress on the concept of Power of Three - Empathy, Speed and Quality (ESQ) initiative launched many years ago. The Bank continuously works on the six pillars of Service Excellence

- Voice of Customer, Service Recovery, Attrition Calling, Process Simplification, Service Culture and Measures and Metrics. The Service Excellence team periodically conducts review of progress on six pillars with key stakeholders, calls with frontline staff to obtain feedback, surprise visits to various units, customer meetings, focus groups and "mystery shopping" to understand frontline service culture and competence. The Bank has constituted three committees at different levels to monitor customer service

- Branch Level Customer Service Committees (BLCSCs), Standing Committee on Customer Service (SCCS), and Customer Service Committee of the Board (CSCB). The Bank on a regular basis , through various means educates its customers to be vigilant on the rising incidents of cyber crimes.

MARKETING/BRAND AWARENESS

In FY 2022, despite lockdown and restrictions in the first half, the Bank continuously took numerous measures to create brand awareness and improve visibility for its products and services. Throughout the year, engagement programs were conducted for DCB Savings Accounts and DCB Gold Loans in print, outdoor and digital media. One of the major FMCG type marketing initiative was the mobile vans campaign for DCB Gold Loans in the branch neighbourhood areas. Across India, external and internal branding along with customised marketing programs / campaigns were successfully executed to engage both customers and employees. Customer friendly awareness videos in regional languages were created and circulated in digital channels for DCB Gold Loan and DCB KCC Loans. A separate video was created to promote the interest rate benefits of DCB Savings Account. DCB Remit was promoted actively on digital media channels throughout the year. A concept book 'My Finances' was created for customers and prospects wherein a record of financial and investment details can be created for reference. The Bank actively and continuously posted interesting information in the social media of the Bank.

IND AS IMPLEMENTATION

The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. Further, a Press Release was issued by the MCA on January 18, 2016, outlining the roadmap for implementation of Indian Accounting Standards (IND AS) converged with International Financial Reporting Standards (IFRS) for banks. As per earlier instructions, banks in India were required to comply with the IND AS for financial statements for accounting periods beginning from April 1, 2018, onwards, with comparatives for the periods ending March 31, 2018, or thereafter. Progressing towards IND AS, the Bank had prepared pro forma financials as on June 30, 2017, as per extant regulatory guidelines and submitted the same to the RBI. On April 05, 2018, the RBI had announced deferment of implementation date by one year with IND AS being applicable to banks for accounting periods beginning April 01, 2019, onwards. In preparation for the same, the Bank has been submitting quarterly pro-forma financials to the RBI from quarter ended June 30, 2018. On March 22, 2019, the RBI has announced deferment of the implementation of IND AS by banks till further notice; however, the Bank continues to submit to the RBI pro forma financials on half yearly basis.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE BANK

Not applicable being a banking company.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All the transactions with related parties are in the ordinary course of business and on arm's length basis and there are no 'material' contracts or arrangement or transactions with related parties and thus disclosure in Form no. AOC-2 is not required.

POLICY ON RELATED PARTY TRANSACTIONS OF THE BANK

The Bank has a policy on Related Party Transactions and the same has been displayed on the Bank's website at the following link:https://www.dcbbank.com/pdfs/Policy-on-Related-Party-Transactions-2019-20.pdf

BUSINESS RESPONSIBILITY REPORT

In terms of Regulation 34(2)(f) of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations 2015, the Bank's Business Responsibility Report describing the initiatives taken by the Bank from an environmental, social and governance perspective forms part of this Report and has been hosted on the website of the Bank at the following Link: http://www.dcbbank.com/cms/showpage/page/forshareholder2021-22.pdf

CORPORATE SOCIAL RESPONSIBILITY (CSR)

1. Brief outline on CSR Policy of the Company.

CSR Activities shall mean all the Corporate Social Responsibility activities / programs / initiatives of the Bank, either ongoing or new, dealing with the activities mentioned in its thrust areas. The activities shall conform to those specified in Schedule VII to the Companies Act, 2013, (the Act), as amended from time to time and as recommended by the CSR Committee and approved by the Board of the Bank.

The thrust areas or activities ascribed to them are defined in the Policy, as amended by the Board, from time to time, which are given below

a) Conservation of water / water storage / water usage / protecting water bodies

b) Waste Management

c) Recycling

d) Promote waste-to-energy

e) Promote start-ups

f) Preservation of historical and heritage sites in situ focus on water conservation, waste management, recycling and, or waste-to-energy.

g) Support Disaster Relief

2. Composition of CSR Committee:

Sl. Name of Director No. Designation / Nature of Directorship Number of meetings of CSR Committee held during the year Number of meetings of CSR Committee attended during the year
1 Ms. Rupa Devi Singh* Chairperson & Independent Director 4 4
2 Mr. Rafiq Somani** Independent Director 4 3
3 Mr. Mur all M Natrajan Managing Director & CEO 4 4
4 Mr. Nasser Munjee*** Chairperson 4 1

* Designated as the Chairperson of the Committee w.e.f September 15, 2021.

** Inducted as the Member of the Committee w.e.f. September 15, 2021.

*** Ceased to be the Chairperson of the Committee w.e.f. August 18, 2021 due to his retirement.

3. Provide the web-link where composition of CSR committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the Bank.

https://www.dcbbank.com/pdfs/DCB-Bank-CSR-Policy-version-03-16-Julv-2019.pdf > Policies https://www.dcbbank.com/board-of-directors > Composition of CSR Committee and https://csr.dcbbank.com/ > Projects undertaken

4. Provide the details of Impact Assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).

Not Applicable

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any.

Sl. No. Financial Year Amount available for set-off from preceding financial years (in Rs) Amount required to be set-off for the financial year, if any (in Rs)
1 FY 2020-21 Not Applicable 0.01 Crore
2 FY 2021-22 0.01 Crore 0.06 Crore
Total 0.01 Crore 0.07 Crore

6. Average net profit of the Bank as per section 135(5) of the Act: Rs 480.08 crore

7. (a) Two percent of average net profit of the company as per above section: Rs 9.60 crore

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Rs 0.01 crore

(c) Amount required to be set off for the financial year, if any: NIL

(d) Total CSR obligation for the financial year (7a+7b-7c): Rs 9.60 crore

8. (a) CSR amount unspent for the financial year: NIL

(b) Details of CSR amount spent against ongoing projects for the financial year: NIL

(c) Details of CSR amount spent against other than ongoing projects for the financial year:

DCB BANK CSR PROJECTS FY 2021-22

Sr. No Name of the. project Item from the list of activities in Schedule VII Local Area (Y/N) Location of the project (District/State) Amount (in Rs) Mode of implementation Mode of implementation (name of Agency) CSR Registration Number
District State (Direct) Y/N
1 Information Communication & Education for rainwater water harvesting & livelihood enhancement projects Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Mumbai & Guntur Maharashtra & Andhra Pradesh 303,500 Y Business India Pvt. Ltd & Eleventh Hermit Direct
2 Sustainable Livelihood Improvement Project (LIP) through Integrated Watershed Management Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Cuttack Odisha 10,704,916 N Concern India Foundation CSR00000898
3 Tree plantation - regenerate tree cover, create sustainable income stream for hamlets devasted by Cyclone Amphan 2020. 10,000 tree saplings of indigenous, stress tolerant species Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y South 24 Parganas West Bengal 3,812,568 N Concern India Foundation CSR00000898
4 Promoting coastal ecosystem sustainable livelihood for communities near mangroves in Uttara Kannada Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Uttara Kannada Karnataka 1,192,500 N Concern India Foundation CSR00000898
5 Plantation of fruit trees & fencing, for sustainable livelihood of rural women Self Help Group (SHG) Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Cuttack Odisha 686,713 N Concern India Foundation CSR00000898
6 Tree plantation for urban lake revival Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Bengaluru Karnataka 210,000 N Concern India Foundation CSR00000898
7 Information, Communication, Awareness on sustainability issues of communities Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Across India Across India 957,500 Y Content India Services Pvt. Ltd. Direct
8 DCB Social CSR Volunteers Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Across India Across India 1,157,300 Y Direct Direct
9 Information & awareness, CSR Journal Excellence Award Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Mumbai Maharashtra 15,000 Y Direct Direct
10 Information & awareness Asian Customer Engagement Forum Awards - CSR Sustainability Project Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Mumbai Maharashtra 10,000 Y Direct Direct
11 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Visakhapat- nam Andhra Pradesh 484,390 Y Ekam Eco Solutions Pvt. Ltd. Direct
12 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Ahmedabad Gujarat 384,995 Y Ekam Eco Solutions Pvt. Ltd. Direct
13 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Nilgiris Tamil Nadu 246,326 Y Ekam Eco Solutions Pvt. Ltd. Direct
14 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Vadodara Gujarat 167,485 Y Ekam Eco Solutions Pvt. Ltd. Direct
15 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Mumbai Maharashtra 139,625 Y Ekam Eco Solutions Pvt. Ltd. Direct
16 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Porbandar Gujarat 133,780 Y Ekam Eco Solutions Pvt. Ltd. Direct
17 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y New Delhi Delhi 117,854 Y Ekam Eco Solutions Pvt. Ltd. Direct
18 Installation of Waterless Urinals Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Fatehgarh Punjab 115,803 Y Ekam Eco Solutions Pvt. Ltd. Direct
19 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Covid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 227,354 Y Elpee Pvt. Ltd Direct
20 Tree Plantation Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Bengaluru Karnataka 339,090 N ENSYDE Foundation CSR00002246
21 Urban forest plantation 36,000 native trees by the Miyawaki method Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Thane Maharashtra 14,400,000 N Green Yatra Trust CSR00000236
22 Urban forest plantations with 60,000 native trees using Miyawaki method Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Delhi, Mumbai, Pune & Thane Delhi & Maharashtra 14,250,000 N Green Yatra Trust CSR00000236
23 Sustainable livelihood fruit trees plantation using the Miy- awaki method Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Rajsamand Rajasthan 911,110 N Green Yatra Trust CSR00000236
24 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Covid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 469,560 Y Harmony Pvt. Ltd. Direct
25 Restoration of Taloja watershed (Kharghar) through community participation Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Raigad Maharashtra 2,366,413 N iNaturewatch Foundation CSR00003491
26 Urban waterbody protection & rejuvenation of Achari Kunta Lake through community participation. Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Medchal Telangana 2,177,341 N iNaturewatch Foundation CSR00003491
27 Karnala Bird Sanctuary mobile app. Biodiversity information, communication & awareness Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Raigad Maharashtra 350,487 N iNaturewatch Foundation CSR00003491
28 Pollinator species rejuvenation to benefit farming & horticulture via butterfly observatory Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Palghar Maharashtra 150,000 N iNaturewatch Foundation CSR00003491
29 Protection of wildlife corridor by reforestation and alternative livelihood improvement programmes around Panna Tiger Reserve Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Panna Madhya Pradesh 1,191,228 N Last Wilderness Foundation CSR00006952
30 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Covid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 307,125 Y Om Sai Pvt. Ltd Direct
31 Trees for tribals, plantation for sustainable livelihood & carbon sequestration Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y East Singhbum Jharkhand 5,000,000 Y Pangea EcoNet Asset Pvt. Ltd. Direct
32 Tree plantation for livelihood creation for the Irula tribe Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Viluppuram Tamil Nadu 2,125,000 Y Pangea EcoNet Asset Pvt. Ltd. Direct
33 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Covid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 2,363 Y Prerana Pvt. Ltd. Direct
34 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Covid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 17,603,577 N Prince Aly Khan Hospital CSR00005415
35 PPE, gloves, sanitisers, masks, head covers, personal safety & hygiene items, etc. Consumables for treatment of Co- vid-19 patients, hospital staff, doctors, etc. Covid-19 disaster management, including relief, rehabilitation activities. Y Mumbai Maharashtra 102,816 Y Roopam Pvt. Ltd. Direct
36 Go Green Campaign, multi-city tree plantation project A Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Across India Across India 487,500 N Sankalp Taru Foundation CSR00000590
37 Go Green Campaign, multi-city tree plantation project B Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Across India Across India 315,000 N Sankalp Taru Foundation CSR00000590
38 Waste management bio digesters to reduce greenhouse gas methane with bio-gas for households Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Adilabad Telangana 3,975,000 N SKG Sangha CSR00005648
39 Jal Vikas - groundwater development for sustainable farming Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Morena Madhya Pradesh 4,759,255 N SM Sehgal Foundation CSR00000262
40 Jal Sanrakshan ll - groundwater development & rainwater catchment for sustainable livelihoods Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Aurangabad Maharashtra 1,530,452 N SM Sehgal Foundation CSR00000262
41 Jal Jeevan - groundwater development for sustainable livelihoods of forest communities around Panna Tiger Reserve Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Panna Madhya Pradesh 148,050 N SM Sehgal Foundation CSR00000262
42 Green Mile - dry waste plastic recycling & wet waste management for organic fertiliser Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Darjeeling West Bengal 1,272,494 Y Tieedi Per- maculture Foundation Direct
43 Improving Tribal Livelihoods through Beekeeping with Indigenous bees (Apis cerana indica and Trigona) Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Tapi & Chhindwara Gujarat & Madhya Pradesh 921,640 N Under The Mango Tree Society CSR00002463
.44 Conservation of Indus River Dolphin in the Beas Conservation Reserve and Harike Wildlife Sanctuary Ensuring environmental sustainability, ecological balance, conservation of natural resources and maintaining quality of soil, air and water Y Taran Taran Punjab 350,000 N World Wide Fund for Nature India CSR00000257
Total 96,573,110

(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment, if applicable: Not Applicable

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): Rs 9.66 crore

(g) Excess amount for set off, if any: Rs 0.06 crore

Sl. Particular No. Amount (in Rs)
(i) Two percent of average net profit of the company as per section 135(5) 9.60 crore
(ii) Total amount spent for the Financial Year 9.66 crore
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 0.06 crore
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any 0.01 crore
(v) Amount available for set off in succeeding financial years [(iii) + (iv)] 0.07 crore

9. (a) Details of Unspent CSR amount for the preceding three financial years: NIL

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): NIL

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year: NIL

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): Not Applicable

Sd/- Sd/-
Mr. Murali M. Natrajan Ms. Rupa Devi Singh
Managing Director & CEO Chairperson-Corporate Socia Responsibility Committee

CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES AND INDEPENDENCE OF A DIRECTOR

• The Board shall have minimum 3 and maximum 15 Directors, unless otherwise approved. No person of age less than 21 years shall be appointed as a Director on the Board.

• The Bank shall have such person on the Board who complies with the requirements of the Companies Act, 2013, the Banking Regulation (BR) Act, 1949, Provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations), the 'Fit & Proper' criteria prescribed by the Reserve Bank of India (RBI), Memorandum of Association and Articles of Association of the Bank and all other statutory provisions and guidelines as may be applicable from time to time.

• Composition of the Board shall be in compliance with the requirements of Regulation 17 (1) of the Listing Regulations.

• Majority of the Directors as required under BR Act shall have specialized knowledge/experience in the areas like Agriculture, Banking, SSI, Legal, Risk Management, Accountancy, Economy, Accountancy and Audit, Finance etc.

• All Directors shall abide by the Code of Conduct.

• Directors shall not attract any disqualification and shall be persons of sound integrity and honesty, apart from knowledge, experience, etc. in their respective fields

POLICY RELATING TO THE REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES

• MD & CEO, Company Secretary and Chief Financial Officer shall be the Key Managerial Personnel (KMPs) of the Bank.

• Except for the Chairperson and the MD & CEO, no other Directors are paid remuneration. The Chairperson and the MD & CEO are paid remuneration as approved by the RBI and other applicable authorities. All Directors except the MD & CEO are entitled to sitting fees for attending various Board and its Committee meetings.

• Independent Directors are not entitled for Employee Stock Options.

• Remuneration of all employees including Senior Management and KMPs are decided as per the Compensation Policy of the Bank.

PARTICULARS OF EMPLOYEES

The Bank had 8077 employees as on March 31, 2022. 10 employees employed throughout the year were in receipt of aggregate remuneration of not less than Rs.1.02 crore per annum and no employee was employed for a part of the year. The details of top 10 employees in terms of remuneration drawn pursuant to provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are appended separately (Annexure-I) and form part of this Report.

The Report and Accounts are being sent to the Shareholders excluding these particulars and any Shareholder interested in obtaining the said details may write to the Company Secretary at the Registered Office of the Bank

EMPLOYEE STOCK OPTIONS

The information pertaining to the Employee Stock Options is given in Annexure-II to this Report.

PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT RULES

a) The ratio of the remuneration of each Director to the median employee's remuneration for the financial year ended March 31, 2022 and such other details as prescribed are as given below:

Name Ratio
Mr. Nasser Munjee 2.3:1
(Chairman till 18-08-2021)
Mr. Mur all M Natrajan 142:1
(Managing Director &CEO)

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name Ratio
Mr. Nasser Munjee (Chairman till 18-08-2021) 0%
Mr. Mur all M Natrajan (Managing Director& CEO) 0%
Mr. Bharat Laxmidas Sampat (Chief Financial Officer) 7%
Ms. Rubi Chaturvedi (Company Secretary) 25%

c) The percentage increase in the median remuneration of employees in the financial year: 0%

d) The number of permanent employees on the rolls of Bank: 8029

e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year ended March 31, 2022 and its comparison with the percentile increase in the managerial remuneration and justification thereof and any exceptional circumstances for increase in the managerial remuneration: Average increase in remuneration is 7.83 % for employees other than Managerial Personnel & 4.42 % for Managerial Personnel (KMP and Senior Management). There are no exceptional circumstances for increase in the managerial remuneration.

f) If remuneration is as per the Compensation Policy of the Bank: Yes

PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The provisions of Section 134(3)(m) of the Companies Act, 2013 relating to conservation of energy and technology absorption do not apply to the Bank. However, as mentioned in earlier part of the Report, the Bank has been continuously and extensively using technology in its operations. Foreign Exchange earnings and outgo are part of the normal banking business of the Bank.

ESTABLISHMENT OF VIGIL MECHANISM

The Bank has in place a vigil mechanism pursuant to which a Whistle Blower Policy has been in vogue for the last several years. The policy was last reviewed in FY 2021-22. This Policy, inter alia, provides a direct access to a Whistle Blower to the Chief of Internal Vigilance (CIV) and a dedicated e-mail id for this purpose is in place whistlblower@dcbbank.com having direct access to CIV and Chairman of the Audit Committee of the Board (ACB).

Chairman of the ACB also has dedicated email-ID cacb@dcbbank.com for getting complaint directly. The Whistle Blower Policy covering all employees and Directors is hosted on the Bank's website at http://www.dcbbank.com/cms/showpage/page/whistle-blower-policv.

None of the Bank's personnel have been denied access to the Audit Committee during the year.

THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Bank has designed and implemented a process driven framework for Internal Financial Controls ("IFC") within the meaning of the explanation to Section134 (5)(e) of the Companies Act, 2013. For the year ended March 31, 2022, the Board is of the opinion that the Bank has sound IFC commensurate with the nature and size of its business operations wherein controls are in place and operating effectively and no material weaknesses exist. The Bank has a process in place to continuously monitor the existing controls and identify gaps, if any, and implement new and/or improved controls wherever the effect of such gaps would have a material effect on the Bank's operation.

DIRECTORS' RESPONSIBILITY STATEMENT

Based on the frame work of internal financial controls and compliance systems established and maintained by the Bank, the work performed by the Internal, Statutory and Secretarial Auditors and the reviews performed by the Management and the relevant Board Committees, including the Audit Committee of the Board, the Board is of the opinion that the Bank's internalfinancial controls were adequate and effective during the year ended March 31, 2022. Accordingly, pursuant to Section 134(5) of the Companies Act, 2013, based on the above and the representation received from the Operating Management, the Board of Directors, to the best of their knowledge and ability confirms that:

(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and that there were no material departure there from;

(ii) they have, in the selection of the accounting policies, consulted the Statutory Auditors and have applied their recommendations consistently and made judgments and estimates that are reasonable and prudent as to give a true and fair view of the state of affairs of the Bank as at March 31, 2022 and of the profit of the Bank for the year ended on that date;

(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

(iv) they have prepared the annual accounts on a going concern basis;

(v) they have laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively during the year ended March 31, 2022; and

(vi) proper system has been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively during the year ended March 31, 2022.

COPY OF THE ANNUAL RETURN

A copy of the Annual Return as of March 31, 2022 pursuant to the sub-section (3) of Section 92 of the Companies Act, 2013 read with Rule 11(1) of the Companies (Management and Administration) Rules, 2014 and forming part of this Report is placed on the website of the Bank as per provisions of Section134(3) (a) and is available at the following link:

https://www.dcbbank.com/cms/showpaae/paae/about-uscorporate-governance

CORPORATE GOVERNANCE

The Bank has been continuously observing the best corporate governance practices and benchmarks itself against each such practice. A separate section on Corporate Governance and a Certificate from M/s S. N. Ananthasubramanian & Co, Practicing Company Secretaries, regarding compliance with the conditions of Corporate Governance as stipulated in Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of this Annual Report.

DIRECTORS

During FY 2022, Mr. Tarun Balram and Mr. Thiyagarajan Kumar, Independent Directors were appointed as the Additional Directors of the Bank with effect from January 24, 2022 and February 10, 2022 respectively. The Shareholders had approved their appointment as Independent Directors through Postal Ballot concluded on March 22, 2022.

Mr. Iqbal Khan (DIN-07870063) is liable to retire by rotation and being eligible, has offered him for re-appointment.

Mr. Nasser Munjee (DIN 00010180), Non-Executive Part Time Chairman of the Bank has retired as Director and the Non-Executive Part Time Chairman of the Bank on August 18, 2021 on completion of the tenure approved by the Reserve Bank of India.

The Board of Directors of the Bank at its Meeting held on January 14, 2022 appointed Ms. Rupa Devi Singh (DIN 02191943), Independent Director, as the Non-Executive (Part-Time) Chairperson of the Bank, subject to approval of the Reserve Bank of India (RBI) and shareholders. The RBI approval is still awaited. The Shareholders approval will be sought thereafter.

The Board of Directors on April 7, 2022 had taken on record the approval of the Reserve Bank of India vide letter Ref. DOR.GOV.No.S4841/29.03.001/2021-22 dated March 30, 2022 approving re-appointment of Mr. Murali M. Natrajan as the MD & CEO of the Bank for a period of two year from April 29, 2022 till April 28, 2024. The Board of Directors of the Bank recommends his re-appointment at the ensuing AGM for approval of Shareholders.

A brief resume relating to the persons who are to be re-appointed as Director for approval of Shareholders and Managing Director & CEO, are furnished in the notice of the 27th AGM. and Corporate Governance Report Based on the disclosures provided by them, none of the above mentioned persons is disqualified from being appointed as a Director in terms of Section 164 of the Companies Act, 2013. The Certificate dated May 7, 2022 issued by M/s. Ananthasubramanian & Co., Practicing Company Secretaries in this regard is attached to and forming part of this report.

In the opinion of the Board of Directors, all the above mentioned Directors being re-appointed during the year, possess the required integrity, expertise and experience.

None of the Directors of the Bank is related to each other per se.

CHANGE IN KEY MANAGERIAL PERSONNEL

There was no change in the Key Managerial Personnel of the Bank during the year ended March 31, 2022

A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS

As per the Board Evaluation Policy of the Bank, evaluation exercise of all Directors, Board as a whole and its various Committees was conducted during the year.

The Board review focused on governance, board structure and composition, relationship and dynamics of the Board, frequency of meetings, information flow and agenda etc.

The Committee review focused on the composition, adequacy of terms of reference of various committees, frequency of meetings etc.

The individual Board members review focused on relevant qualification/skillsets, understanding of the Bank and banking industry, contribution in meetings, attendance etc.

The findings of the exercise were discussed in the meetings of Independent Directors, Nomination and Remuneration Committee and the Board. The appropriate feedback was conveyed to each Director. The Board was satisfied with the performance of each Member, the Board and various Committees. Since Mr. Tarun Balram and Mr. T. Kumar joined the Board in last quarter, they did not participate in the evaluation exercise..

THE DETAILS OF FAMILIARISATION PROGRAMME ARRANGED FOR INDEPENDENT DIRECTORS HAVE BEEN DISCLOSED ON WEBSITE OF THE BANK AND ARE AVAILABLE AT THE FOLLOWING LINK:

https://www.dcbbank.com/upload/pdf/Familarisation-Programme-for-IndeDendent-Directors.pdf

STATUTORY AUDITORS

In the Twenty Sixth Annual General Meeting (26th AGM) held on August 13, 2021, the terms of M/s S R Batliboi & Associates LLP, Chartered Accountants (Registration No.101049W/E300004) were revised from 4 years to 3 years from the FY 2020-21 till (and including) the FY 2022-23 as Statutory Auditors of the Bank to hold office for three (3) years from their original appointment at the Twenty Fifth Annual General Meeting as per the requirements of the guidelines dated April 27, 2021, issued by Reserve Bank of India (RBI). Pursuant to the said RBI Guidelines, M/s Sundaram & Srinivasan, Chartered Accountants, (ICAI Registration No. 004207S), were also appointed as Joint Statutory Auditors of the Bank in the 26th AGM. As such, both the statutory auditors are working as joint statutory auditors for the Bank from FY 2021-22.

As per the extant provisions, the RBI gives permission for appointment of auditor on year-to-year basis till expiry of the tenure of the Statutory Auditors. Accordingly relevant application have been made to RBI requesting its approval for appointment of M/s. S R Batliboi & Associates LLP, Chartered Accountants (Registration No. 101049W/E300004) and M/s Sundaram & Srinivasan, Chartered Accountants, (ICAI Registration No. 004207S) as the Joint Statutory Auditors of the Bank for FY 2022-23.

SECRETARIAL AUDIT REPORT

Pursuant to the requirements of the Companies Act, 2013, the Bank has appointed M/s. Ananthasubramanian & Co., Practicing Company Secretaries (COP 1774) as the Secretarial Auditor for FY 2021-22 and their report is attached separately to this Report.

ACKNOWLEDGEMENTS

Your Board wishes to thank the principal Shareholder and Promoters, the Aga Khan Fund for Economic Development S.A. (AKFED) and all the other Shareholders for the confidence and trust they have reposed in the Bank. Your Board also acknowledges with appreciation the Reserve Bank of India (RBI) for its valuable guidance and support to the Bank. Your Board similarly expresses gratitude for the assistance and co-operation extended by SEBI, BSE, NSE, NSDL, CDSL, NPCIL, Central Government and the Governments of various States, Union Territories and the National Capital Region of Delhi where the Bank has its branches.

Your Board acknowledges with appreciation, the invaluable support provided by the Bank's auditors, lawyers, business partners and investors. Your Board is also thankful for the continued co-operation of various financial institutions and correspondents in India and abroad.

Your Board wishes to sincerely thank all its customers for their patronage. Your Board records with sincere appreciation the valuable contribution made by employees at all levels and looks forward to their continued commitment to achieve further growth and take up more challenges that the Bank has set for the future.

On behalf of the Board of Directors
SD/- SD/-
Murali M. Natrajan Mr. Somasundaram PR
MD & CEO Independent Director
Place: Mumbai
Date: May 7, 2022

   

DCB Bank Ltd Company Background

Rupa Devi SinghMurali M Natrajan
Incorporation Year1995
Registered Office601& 602 Peninsula Business Pk,Tower A 6th Floor Lower Parel
Mumbai,Maharashtra-400013
Telephone91-022-6618 7000,Managing Director
Fax91-022-6658 9970
Company SecretaryRubi Chaturvedi
AuditorS R Batliboi & Associates LLP
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarLink Intime India Pvt Ltd
C-101 247 Park ,L B S Marg ,Vikhroli West ,Mumbai-400083

DCB Bank Ltd Company Management

Director NameDirector DesignationYear
Murali M Natrajan Managing Director & CEO 2022
Shaffiq Dharamshi Director 2022
Rupa Devi Singh Chairperson 2022
Iqbal Ishak Khan Director 2022
Rubi Chaturvedi Company Sec. & Compli. Officer 2022
Ashok Barat Independent Director 2022
Amyn Jassani Addtnl Independent Director 2022
Shabbir Merchant Independent Director 2022
Somasundaram Palamadairamaswamy Addtnl Independent Director 2022
Rafiq Ramzanali Somani Addtnl Independent Director 2022
Tarun Balram Addtnl Independent Director 2022
Thiyagarajan Kumar Addtnl Independent Director 2022

DCB Bank Ltd Listing Information

Listing Information
BSESMALLCA
BSEALLCAP
BSEFINANCE
BSEPVTBNK

DCB Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/disc on advance/billsRs.0002843.1889
Income on investments Rs.000622.7931
Interest on balance with RBI Rs.00037.0808
Other Interest Rs.00033.5701

Contact us Contact us