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DCB Bank Ltd

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

NSE BSE
 
SMC up arrow

90.75

0.50 (0.55%) Volume 280564

07-May-2021 EOD

Prev. Close

90.25

Open Price

91.00

Bid Price (QTY)

90.75(14)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 91.75 - 90.10

52 wk High/Low 126.50 - 58.00

Key Stats

MARKET CAP (RS CR) 2818.23
P/E 8.63
BOOK VALUE (RS) 107.7374057
DIV (%) 0
MARKET LOT 1
EPS (TTM) 10.52
PRICE/BOOK 0.842325832985971
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 47.35
4

News & Announcements

06-May-2021

DCB Bank Ltd - DCB Bank Limited - Analysts/Institutional Investor Meet/Con. Call Updates

03-May-2021

DCB Bank schedules board meeting

03-May-2021

DCB Bank Ltd - DCB Bank Limited - Press Release

30-Apr-2021

DCB Bank invests in equity in India INX and India ICC

03-May-2021

DCB Bank schedules board meeting

30-Apr-2021

DCB Bank invests in equity in India INX and India ICC

27-Apr-2021

DCB Bank allots 12,400 equity shares under ESOP

23-Apr-2021

DCB Bank acquires 9.09% stake in Techfino Capital

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
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
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 44281086 14.26
Total Institutions 125897943 40.54
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 16485828 5.31
Total Promoters 46200234 14.88
Total Public & others 77671022 25.01
Total 310536113 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

Last year I began my Statement with the following words: "We are living in a dynamic and unpredictable world. There are complex set of variables that are constantly changing making it very difficult to visualize stability or predict the future with any level of accuracy". Little did I realize to what extent those words would be illustrated by a catastrophic event that we experience today.

The onset of the Covid-19 pandemic in first quarter of current calendar year is a black swan event, which was anticipated as a possibility for many years, not taken seriously by many nations, as a result of which public health systems were underinvested in to the extent that the most advanced nations in the world did not possess even the most rudimentary equipment to protect nurses and doctors who would be the front line of defence against such an eventuality.

The unpreparedness of the world for a possible but remote risk (even demonstrated in films) illustrates the challenges the world is facing at the present time. Risk Assessments and Mitigation are a normal process of every company's protocol. This catastrophe will force nations to rethink their approach towards health infrastructure. As a result, our theme this year focusses attention on the imperative of sound leadership in a time of crisis

As our theme suggests, there are three words that are critical in these times: Prediction, Adaptability and Resilience. Leadership is about being mindful of these elements and preparing an institution for the challenges and opportunities for the future. As part of DCB Bank's strategy, we have constantly used these three words for over a decade. Being mindful of the external environment and de-risking the balance sheet in the early days we decided to be a predominantly retail bank. As the years went by, this was only intensified and today we have avoided considerable problems linked to wholesale funding and corporate banking.

Adaptability has been a major element in our ability to innovate products and technology and to use our capacity to be nimble and adaptive. In these times of crisis, this ability that has been part of our training and culture, has come to the fore as our staff, even though largely homebound, have been able to sustain our operations and respond to our customers proactively.

Resilience is the outcome of both being mindful of the emerging external environment as well as flexible in our response to a constant flux and uncertainty around us. It is also the consequence of making sound strategic decisions given a realistic assessment of the external environment; an ability to guide an institution through uncertainties that are constantly changing and emerging.

I am happy to report that this year we continued to make steady progress through the year. The last quarter was largely impacted by the Covid-19 crisis and March 2020 was disrupted by the imposition of lock-down. The Bank experienced modest growth in a year that saw a gradual slowing down of the economy prior to Covid-19. Balance Sheet grew to ` 38,505 crore with Deposits at ` 30,370 crore and Advances at ` 25,345 crore. Operating Profit grew by 16.5% to ` 753.06 crore; Profit after Tax, however, increased by 3.9% weighed down by Covid-19 Regulatory Package provision (` 63 crore) and other provisions. PAT for the year was ` 337.94 crore against ` 325.37 crore in the previous year.

As we move into FY 2021, we face extreme uncertainty with the possibility of major economic slowdown due to the unavoidable steps taken by the Government to prevent the spread of Covid-19. Recovery will be slow and perhaps painful across most sectors. The financial sector, which was facing difficulties even before the impact of Covid-19, may witness an intensification of problems. We are confident that the Government of India along with Reserve Bank of India will continue to take deft policy initiatives which will help the economy and the banks. We are a resilient country and over time we will emerge victorious from the current challenge as well.

This brings me back to our theme this year: Leadership. Leadership for public policy as well as institutions to steer the ship in stormy seas. We need to set the course very clearly and all actors will need to do their best to point in the direction of emergence. Good leaders are those who can determine the right destination. Rabindranath Tagore wrote, "Let me not pray to be sheltered from dangers, but to be fearless in facing them". That is what is required today.

   

   

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 Fifth 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, 2020 (FY 2020).

In FY 2020, the Bank has posted an Operating Profit of Rs 753.06 crore (FY 2019 Rs 646.60 crore) and a Net Profit of Rs 337.94 crore (FY 2019 Rs 325.37 crore).

Total Assets have increased by Rs 2,713.31 crore and reached Rs 38,505.14 crore as on March 31, 2020 (` 35,791.83 crore as on March 31, 2019).

Customer Deposits have increased by Rs 2,241.09 crore and Advances have increased by Rs 1,777.29 crore. Your Bank has been contributing significantly 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 3.67% in FY 2020 as compared to 3.83% in FY 2019 and the Current and Savings Accounts (CASA) ratio stood at 21.5% as on March 31, 2020.

Cost to Income Ratio has decreased to 54.5% in FY 2020 from 56.9% in FY 2019. Total Branch network stood at 336 as on March 31, 2020 (333 as on March 31, 2019) and ATM network was 504 as on March 31, 2020 (504 as on March 31, 2019).

Provisions Other Than Tax have increased to Rs 261.14 crore in FY 2020 from Rs 140.06 crore in FY 2019. The increase was mainly due to provision of Rs 63 crore towards Covid-19 Regulatory Package Provision. The Bank is adopting a conservative approach towards potential stress on account of Covid-19 and moratorium permitted by the Reserve Bank of India. The Bank also made provision for existing and fresh Non Performing Assets (NPA) slippages, and provision against Standard Assets.

Gross NPAs have increased to Rs 631.51 crore as on March 31, 2020 from Rs 439.48 crore as on March 31, 2019. Consequently, Gross NPA Ratio as on March 31, 2020 was 2.46% as compared to 1.84% as on March 31, 2019. Net NPAs have increased to Rs 293.51 crore as on March 31, 2020 as against Rs 153.77 crore as on March 31, 2019. Consequently, Net NPA Ratio as on March 31, 2020 was 1.16% as compared to 0.65% as on March 31, 2019. The overall NPA Provision Coverage Ratio as on March 31, 2020 was 70.81 % (78.77% as on March 31, 2019).

Return on Assets (RoA) Ratio in FY 2020 was 0.90% as compared to 0.99% in FY 2019.

Corresponding Return on Equity (RoE) Ratio in FY 2020 was 11.19% as compared to 12.08% in FY 2019.

Capital Adequacy Ratio (CAR) under Basel III as on March 31, 2020 stood at 17.75% (16.81% under Basel III as on March 31, 2019).

FINANCIAL SUMMARY

(` in crore)
Balance Sheet As at March 31, 2020 As at March 31, 2019 Increase / (Decrease)
Customer 26,287.15 24,046.06 2,241.09
Deposits
Inter Bank 4,082.78 4,389.05 (306.27)
Deposits
Total Deposits 30,369.93 28,435.11 1,934.82
[Including Total CASA*] [6,519.22] [6,809.90] [290.68]
Advances 25,345.29 23,568.00 1,777.29
Gross – NPA 631.51 439.48 192.03
Net – NPA 293.51 153.77 139.74
Provision for 174.90 97.11 77.79
Standard
Assets**
Total Assets 38,505.14 35,791.83 2,713.31
Profit & Loss For the year ended March 31, 2020 For the year ended March 31, 2019 Increase / (Decrease)
Net Interest 1,264.91 1,149.29 115.62
Income
Non Interest 391.10 350.16 40.94
Income
Total Operating 1,656.01 1,499.45 156.56
Income
Operating Cost 902.95 852.85 50.10
Operating Profit 753.06 646.60 106.46
Provisions Other than Tax 261.14 140.06 121.08
Net Profit Before 491.92 506.54 (14.62)
Tax
Tax 153.98 181.17 (27.19)
Net Profit After Tax 337.94 325.37 12.57

DIVIDEND

The Reserve Bank of India, vide its circular date April 17, 2020, has directed that banks shall not make any dividend pay-outs from profits pertaining to the financial year ended March 31, 2020 until further instructions, with a view that banks must conserve capital in an environment of heightened uncertainty caused by Covid-19. Accordingly, the Board of Directors of the Bank, has not proposed any dividend for the year ended March 31, 2020.

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, which has been very successful and now completed 10 years.

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 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. In the long run, Goods & Service Tax (GST) and other reforms are expected to be beneficial to the economy.

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 FY 2018-19 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 Caf, Coaching Classes, Tour Operator, Hotel Owner, Transporter, Ticketing Agent, C&F Agent, amongst others. The list of Self Employed 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.

As of now, economic activity has been significantly affected by the unavoidable steps taken by the government to limit the spread of Covid-19. Lock-down restrictions have dampened demand, disrupted labor and supply chain. Lock-down has majorly impacted the self-employed segment. The general view is that the economic activity is likely to resume and improve step by step in response to easing of lock-down restrictions. We are all learning to deal with the effects of the pandemic. It is difficult, if not impossible, to estimate the shape of things to come in near term. Once lock-down restrictions are eased, loan demand may pick-up slowly in 3 to 6 months (depending upon type of business/industry). Smaller locations may recover sooner than metropolitan / large cities. The recovery may not be smooth and there may be further disruptions in the coming months. The Bank intends to re-look at all its credit policies in the light of Covid-19 disruptions. In the near term, the aim is to preserve capital, manage portfolio stress, reduce costs and maintain adequate liquidity. We have to continuously watch out for safety of staff and customers while running banking operations.

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+ (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.

AWARDS AND RECOGNITION

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

Corporate Social Responsibility (CSR)

• Awarded by Bombay Chamber of Commerce and Industry, Mumbai for ‘Sustainable Environmental Initiatives' for CSR projects.

• Awarded for Best CSR Project at Asian Customer Engagement & Forum - ACEF HR & CSR Forum & Awards, Mumbai.

Human Resources

DCB Bank continues to be Great Place to Work-Certified™ for building a High-Trust and High-Performance Culture™. It has also featured in the top 25 organisations among India's Best Workplaces in BFSI 2020.

Information Technology

Your Bank's efforts in modernising technology and being in the forefront of innovation was recognised in many forums as below:

• "Tech Trendsetter" at India Banking Reforms Conclave & BFSI Awards

• "Best Private Bank of the Year" by Indian Banking Summit and Awards 2019

• "BFSI Digital Innovation Award 2020" in BFSI Technology Conclave by Indian Express

• Award for SME Finflex Banking system at Finnoviti 2020

BRANCH EXPANSION / ATMs

The number of branches as on March 31, 2020 stands at 336 [188 Retail branches and 148 branches in Agri and Inclusive Banking (AIB)]. In line with the stated strategy, approximately 20 percent of the branches are in rural areas and 26 percent in semi-urban areas. The branch expansion strategy which led to the opening of 150 new branches between October 2015 and October 2017, is now yielding results, with a very high proportion of the branches breaking even in less than 24 months from the start of their operations. The new branches have a common look and feel and they are designed to provide a unique, positive and seamless banking experience for the customer. The Bank has 504 ATMs as on March 31, 2020.

RETAIL BANKING

Retail Banking offers unique products for meeting financial needs and 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. In order 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 Suraksha is a unique deposit that not only offers a higher interest rate than competition but also provides a "no medical required life insurance cover" at "zero cost" to customers (subject to terms and conditions). During FY 2020, the Bank has substantially changed the liquidity profile and mix of its deposits. The focus was on obtaining granular deposits. In comparison to the previous year, the Bank saw its Retail Term Deposit grow by 51%. Consequently, the top 20 deposits ratio which was at 12.01% at the start of the year declined to 9.27% at the end of FY 2020.

Mortgage and Micro Mortgage Loans

Mortgage contributes 42 % of the Bank's loan portfolio and is the leading product for the past many years. Almost all the branches offer Mortgage loans. These loans are primarily targeted to self-employed customers in the neighbourhood of our branches. The main purposes of these loans are home purchase, home improvement, home repairs, business growth and personal expenses such as education or marriage. Micro or small ticket mortgages are particularly sought after in Tier 2 to Tier 6 locations. Many people in the rural and semi-urban areas derive cash income from small businesses or trade. At times this creates challenges in estimation of income and hence estimation of repayment capacity. The Bank has demonstrated the ability to assess the household income for such customers by ensuring in depth personal discussions with the borrowers and co-borrowers. Apart from creating a good quality portfolio the Bank has been able to achieve financial inclusion. Most of these micro loans qualify under the Priority Sector Loan (PSL) norms of the RBI. As a part of the Government of India's Pradhan Mantri Awas Yojana Scheme, during this year the Bank has processed the subsidy applications for many home loan borrowers and subsidy has been credited to 1,449 customers.

Construction Finance (CF)

The construction sector is an important contributor to the growth of our economy. Affordable housing is a key thrust area of the Government, in both rural and urban areas. The implementation of Real Estate Regulation & Development Act, (RERA) 2016, in most states, has brought in much more transparency into this sector, thus creating conditions favourable for banks and home buyers. The Bank's approach is to focus on reputed builders with a strong track record who are primarily concentrating on affordable housing segment. The Bank takes on limited exposure per customer / project and has created credit processes to monitor utilisation and completion.

Commercial Vehicle (CV) Loans

Commercial Vehicle Loans (CV) significantly improves the PSL composition in the Bank. Almost 95% of the CV portfolio is categorised as PSL. This facility is offered across 110 locations. The CV industry is facing headwinds on account of weak economic conditions. In the near term the CV book is expected to be have some stress. The Bank has allocated adequate Collections and Recovery staff to manage the CV portfolio. 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 trained, in house valuers, which has resulted in improvement in cycle times and service delivery. The Bank has implemented "Gradaitm" a dedicated front end software for onboarding gold loan customers.

Insurance and Mutual Funds Distribution

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

Traditional Community Banking

With a vision of strengthening neighbourhood banking, the Bank set up a separate vertical in FY 2010 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 of education, personal, business and working capital.

Non-Resident Indian (NRI) business

The Bank has NRI customers from over 134 countries, which contribute to 10% of the Bank's total customer deposits. During the year, the Bank successfully and smoothly acquired deposit portfolio of two branches of the India business of Abu Dhabi Commercial Bank (ADCB). The deposits of ADCB were largely high quality NRI deposits.

ATMs

The number of ATMs as on March 31, 2020 was at 504. The Bank has taken steps to strengthen the security features and comply with RBI guidelines on EMV. During the year the Bank modernized more than 30% of the equipment by replacing old ATMs with new machines.

DCB Cards

In FY 2020, the Bank introduced the following in DCB Cards: -

• Dynamic additional (second factor) authentication

• International transaction block/ unblock feature

• Online transaction block/unblock feature

• Card usage limits in terms of velocity and volume

DCB Debit Cards

The Bank offers Cashback benefits for using its Debit Cards subject to maintaining prescribed average balances in CASA. At the end of FY 2020, the Bank had 582,366 Debit Cards. The overall focus on "Digital India" is helping to increase digital transactions rapidly. DCB Debit Cards, from time to time, also offer additional promotional discounts on specific categories of spends.

DCB NiYO Global Cards

DCB Niyo Global Card is a Debit Card powered by Visa and is issued on DCB Niyo Current Account. This card enables the cardholders to access their funds anywhere and anytime. The cardholder is not required to worry about running out of funds or even calculating foreign exchange mark-ups. DCB Niyo Global Card is a "must" for every traveler. The Bank had approximately 170,000 cards at the end March 31, 2020.

DCB Payless Cards

This is a unique product offered by the Bank and is a preferred card for self-employed or salaried who are unable to provide complete documented proof of their income which precludes them from obtaining credit cards from other banks. In FY 2020, the Bank witnessed a major increase in usage of DCB Payless Cards in Point of Sale (POS) and e-Commerce. The Bank has created a facility for paperless issuance of DCB Payless Cards for its existing fixed deposit customers.

DCB Bank Prepaid Cards

DCB Bank has full suite of payment products on its prepaid platform. The versatile capability can cater to different needs of product providers. The card is targeted at unbanked population. It helps convert small ticket cash purchases to digital mode. As an example, at the end of FY 2020, DCB Niyo Blue Card (offered to blue collared workers) stood at approximately 550,000 cards.

COLLECTIONS AND RECOVERIES

Collections and Recoveries is a critical function and overtime this function has developed robust capabilities to collect overdue payments and ensure portfolio quality across products. The senior officers in the collections unit are experienced to understand the issues faced by customers and strive to find acceptable ways to rehabilitate the customers in case of stress. The team operates out of 245 locations in India. The use of data analytics to improve predictability has been critical in improving the productivity of this unit. The M-Collect mobile app for providing system generated receipts on the field is working efficiently and provides real time updates to the loan system.

STRATEGIC ALLIANCES

One of the key strategies of the Bank is to look for alliances with entities that may have similar business objectives. The idea is to enhance product benefits in order to facilitate new customer acquisitions and customer retention. Over time, we expect stronger customer loyalty and increased fee income.

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
Aditya Birla Sun Life Insurance Company Ltd Corporate Agency
HDFC Standard Life Insurance Company Ltd Corporate Agency
ICICI Lombard GIC Ltd Corporate Agency
Royal Sundaram GIC Ltd Corporate Agency

Remittance Solutions

Name of the Partner Type of arrangement
Avenues Payments India Remittance Platform Solution
(P) Ltd

Service Partners

Name of the Partner Type of arrangement
Atos Worldline India (P) Ltd Merchant Acquiring
Skilworth Technologies Pvt Ltd. (Bijlipay) Merchant Acquiring
CMS Info System Limited ATM deployment and Cash management
Euronet Services India ATM and Switch
Limited Management
M2P Solutions Pvt Ltd. Program Partner

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
Xomic Infotech Private Limited Government E Marketplace Payment Management System

MSME and SME

The MSME and SME is a large and ubiquitous segment. This segment is the core target market for your Bank. It is a bedrock and lifeline of the economy. Unfortunately, due to lock-down restrictions on account of Covid-19 pandemic this segment is most affected. The Bank through its frontline officers has been reaching out to its customers during the lock-down. It appears that a majority of customers will be able to revive their business within a few months of easing of lock-down restrictions. The Bank has also been providing information on moratorium and urging customers to continue to meet their loan obligations in case their cash flows are not affected. In the coming months the Bank intends to continue to work closely with its customers across all products. The Bank is likely to participate in the special loan guarantee scheme recently announced by the Government.

CORPORATE BANKING (CB)

The Bank's intention is to have a limited presence exposure in Corporate Banking. This business operates across India with regional offices in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. The business objective is to provideacompleterangeofcommercialbankingsolutionsincluding 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. During FY 2020, the Bank acquired a select good quality Corporate Loan portfolio of two branches of ADCB in India. In order to ensure quality, 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 2020, the Bank added 37 new relationships in Corporate Banking. Your Bank understands that the Relationship Managers (RMs) must have in-depth knowledge of various industries and corporates. In order to meet this need, the Bank has introduced RM Knowledge Improvement Programs wherein information on various industries, corporates and credit ratings are shared with the RMs on a regular basis.

AGRI AND INCLUSIVE BANKING (AIB)

AIB is a separate unit designed to enhance the Bank's Rural and Semi-Urban footprint with the main aim of achieving Financial Inclusion and PSL. At the end of March 2020, AIB had 148 branches in 11 states. Rural and Semi-Urban India offers numerous business opportunities for simple innovative technology backed products. Many of the new branches are located in Tier 2 to Tier 6 locations. There is a constant endeavour 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 2020, your Bank actively participated in PMJDY. The Bank had 32,281 PMJDY accounts as on March 31, 2020. 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. As on March 31, 2020 the Bank had 6,483 customers under PMSBY; 3,330 customers under PMJJBY and 2,397 customers in APY.

Basic Savings Bank Deposit Account (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 47,032 BSBDA accounts as on March 31, 2020.

Kisan Mitra

"Kisan Mitra" as the name suggests, is a liability product, which fulfils the requirement and improves the saving habit in rural areas. It is a product specially designed for farmers. It is a modified Savings Account with "Zero" account opening balance and no Average Quarterly Balance maintenance charges.

Retail Agriculture Loan and Kisan Credit Card

In order to meet the credit needs of the farmers, the Bank has several retail agri products namely Kisan Credit Card which provide for short term requirement like purchasing seeds, fertilizers, pesticides, manure, irrigation, long term loan for animal husbandry and loans for investment purpose like land improvement, irrigation and hi-tech agriculture.

Tractor Loans

Tractor Loans is an integral part of the total agricultural equipment sector and is an indirect indicator of growth in the agricultural sector. The Bank has steadily built its business across Tier 2 to Tier 6 locations and part of the Agri and Small and Marginal Farmers loan targets set by RBI are met by tractor loans. In FY 2020, the Bank has started loans for used tractors, which is likely to benefit small and marginal farmers who cannot afford new tractors. Tractor loans are originated using the tab banking facility which enables doorstep servicing to the customers.

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 strong network of MFI relationships across India. The Bank is also providing unsecured loans through BCs in select states. Loans are given to members of Self Help Groups (SHGs) and Joint Liability Groups (JLGs) thereby enabling them to avail small loans from the banking sector instead of high cost borrowing from money lenders. These loans are primarily provided to small farmers and weaker sections mainly in rural areas. In order to support the volume growth, your Bank has an efficient software system for managing BC Loans. This software helps maintain adequate information about the borrowers under SHGs and JLGs. It provides a common platform for the Bank and BCs for efficient and timely processing of loans.

ALTERNATE CHANNELS AND DIGITAL BANKING

Phone Banking

In FY 2020, the Bank's Customer Care Associates attended to almost 100,000 calls per month. The Call Center achieved one of the best "speed to answer" response time across the industry. At DCB Bank's 24-Hour Customer Care, customers directly get connected with the call center agents / associates without having to go through Interactive Voice Response (IVR) menu. Considering the Bank has to cater to entire India, 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 runs programs such as ‘Voice of the Customer' for effective complaint resolution and process improvement. One of the key measures initiated is a customer retention calling team is to encourage customers to restart banking with us and also do a deep dive on issues faced by customers. It is a window provided to the customers to give the Bank valuable feedback which are then passed on to the various functions and the product teams for corrective action and improvements. During FY 2020, the unit migrated to new complaint management tool "Genie" which helps auto populate customer information thereby reducing the time taken to resolve customer issues. In addition, this new software has a feature to send "ticket numbers" to customers via SMS which helps customers for future reference. The Bank has quickly adopted to new "Work From Home" technologies in view of the Covid-19 situation and now have almost 60% of its call center agents serving customers from home.

DCB Mobile and Internet Banking

The Bank's customers have been offered a "New Mobile Banking App" with enhanced features and easy navigation. For example, now customers can create "Fixed Deposits", block or unblock their debit card for POS, e-Commerce, ATM etc. The new mobile banking app has been welcomed by customers and the rating in the Play Store (Android) has jumped from 2.7 to 4.7 within a short time. In FY 2020, the Bank has approximately 85,000 customers using the Internet Banking from the comfort of their home or office. The Bank has launched fast, convenient and environment friendly "Green PIN" concept for Internet Banking passwords. This eliminates the need for delayed paper based delivery of passwords through the use of postal services.

The Bank has also launched "e-Verify Income Tax Return" via the Bank's online banking facility.

DCB Unified Payment Interface (UPI):

UPI has become one of the most popular digital mode for small transactions. Approximately 120,000 account holders used the UPI channel in FY 2020. The UPI mode can be used for IPO applications as well.

DCB Open Banking

Open Banking is an innovative emerging trend in financial technology. It is based on APIs that enable third party service providers to build applications and services around a bank's technology platform. In FY 2020, the Bank integrated its banking services with Zoho Books. The self-employed can use this powerful software to seamlessly combine their book keeping and banking transaction needs. It reduces the need for time consuming bank reconciliation and in general is a very convenient and productive way of running a business.

DCB Remit

DCB Remit allows a resident individual to send money to over 20 countries including Australia, Canada, Euro Zone, Singapore, UAE, UK and USA from the mobile phone, without ever having the need to visit a branch. What is more, for using DCB Remit the user does not have to be the Bank's customer. Regardless of whichever bank the customer banks with, DCB Remit has the power to remit funds in seven different currencies in a completely paperless fashion.

Digitally Enabled Government Services

GeM (Government E-Marketplace), is an online platform that facilitates online procurement of commonly used goods and services required by various government departments and PSUs. The Bank has tied up with Government e-Marketplace (GeM) through a Memorandum of Understanding, as an associate bank to facilitate transactions between buyers and sellers on the GeM portal. This would enable a majority of the Bank's self-employed customers to participate in the procurement process of various government departments. Further, the customer information available on the portal will enable the Bank to extend credit facilities inter alia Invoice Financing and Short Term Loans.

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 18 vendors for CMS cheque collections across India. The Bank has upgraded the CMS system for both Payments and Collections making it rich in features. At the end of FY 2020, the Bank had 6,375 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 2020, BIB facility had 30,884 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 2020, the Bank made gains in a cautious manner by utilizing the trading opportunities in G-Sec presented by declining interest rates. The Bank selectively invested in Equity IPOs and booked profits by way of listing gains. The Bank also invested in units of Liquid Mutual Funds in order to earn interest income on liquidity mismatches.

Money Market

India's Gross Domestic Product (GDP) growth rate came below 5.0% indicating some level of slowdown even prior to Covid-19. The Index of Industrial Production (IIP) remained muted indicating slowdown and lack of growth in many sectors. The Consumer Price Index (CPI) inflation moved up sharply from a low of 2.57% in April 2019 to 7.59% in February 2020 before coming down to 6.58% in March 2020. In order support growth, RBI appears to be taking an accommodative stance and, in steps, reduced Repo Rate from 6.25% to 4.40%. RBI also cut CRR by 100 bps from 4% to 3% to provide liquidity. These measures also aimed to bring down yield of Government Securities so as to lower the borrowing cost of the Government. Sensex went up till February 2020. However, equity market corrected sharply in March 2020 taking clue from Global Majors following outbreak of Covid-19. Major global equity indices fell by more than 30%.

Foreign Exchange

The trade war between USA and China, dominated the markets for most part of the year with Asian currencies gradually weakening. Euro was haunted by weak Euro zone data, fragility in German politics and dovish ECB while GBP movement was ruled mainly by the Brexit issue. Until recently, the USA economy continued to do well causing the Dollar Index to increase and the US Stock Indices touching all-time high. Uncertainties in the global markets caused gold prices to move up while Crude Oil price surged due to supply cuts by the OPEC and Geo Political tension between USA and Iran. In Q4 FY 2020, the rapid spread of Covid-19 caused major disruptions in the economies of almost every country. Disagreement between Saudi Arabia and Russia on cuts in crude supplies created volatility and the Brent Crude came down to US dollars 22 / barrel. The US dollar rose against a basket of currencies, as concerns about the economic fallout from Covid-19 increased demand for US dollars globally despite recent steps taken by world central banks aimed at alleviating market stress. The increase in number of Covid-19 cases caused Indian rupee to depreciate sharply to trade above Rs 75 per USD.

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 is exposed to credit, concentration, market, country 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 taking into account geographic nuances. The Bank has implemented a rating model that takes into account both quantitative and qualitative factors and produces a rating that becomes one of the key inputs to credit decisions. In order 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, continuously monitors portfolio concentrations by segment, ratings, borrower, group, sensitive sectors, unsecured exposures, industry and geography. The Bank adopts a conservative approach within the regulatory prudential exposure norms.

Market Risk

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

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.

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

Your 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). New products and processes are reviewed by MCAP. The Committee is tasked with identifying operational and compliance risks in new products/processes and ensuring that steps are taken to mitigate the risks. Also, MCAP, on an on-going basis reviews existing processes for further improvement. In the FY 2020, 136 products/processes were reviewed 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.

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 on its risk management systems and practices to align them with international 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)

The banking landscape is going through a paradigm shift. Customers are demanding high level of digitization, intuitive user interfaces and frictionless user journey. The current lock-down situation has further accelerated the need for digitization. Banks are embracing flexible emerging technologies and evolving business models to service customers' expectations.

Your Bank has taken many initiatives to keep pace with these rapid changes. It has created a detailed and dynamic "digitization" plan with adoption of Agile delivery which is being executed in a systematic manner. The intention is to provide a new user customer experience and to meet customer demands by taking advantage of the digital revolution. In FY 2020, the Bank's IT team and users were very busy launching a number of contemporary solutions that has the potential to generate new business, strengthen infrastructure and controls, provide superior service and enable scaling up of volumes.

Highlights of IT in FY 2020:-

• Mobile Banking launch with superior user experience and extended features for Retail Banking customers

• Launched DCB Zippi online fixed deposit (FD) scheme that allows any resident Indian to open an account from the comfort of home

• Finacle 10x upgrade initiated

• "Connected Banking" to help customers avail services like fund transfer, account statement on partner's platform in a safe and secure manner

• NIYO Merchant: DCB UPI facility on NIYO cards implemented

• DCB Remit new website with Intuitive User Experience and unique feature of seven currencies and remittance to over 20 countries.

• DCB Bank Income Tax E-filing service through DCB Bank's Internet Banking implemented.

• NRI Online AOF Platform (relaunched)

• DCB Bank Pool Account on Government e-Marketplace (GeM)

• Fraud Risk Management - Prepaid Card alerts and SWIFT Integration implemented

• DCB Bank VISA Access Control Server (ACS) secure mechanism for DCB Bank Visa Cards launched (enables customers to verify their identity and transact in a secure manner).

• RuPay Pay Secure for DCB Bank RuPay card holders (provides customer an enhanced security for online transactions)

• Lending Platform "Neo" upgraded to new version (Neo 2.0) with API enabled and enhanced features

• Locker Module for branches

• UPI 2.0 launched with One-time mandate functionality Aadhaar Data Vault implemented

• AML integration with SWIFT implemented

• Treasury System automation done. No manual intervention between dealing platforms (CALL, CROMS, TREPS) and Credence

• SWIFT Version upgraded from 7.2 to 7.4

• Identity and Access Management Solution implemented

• Workflow Automation in Sapphire (Call Center, Staff Payments, Asset Management, Interest rate related complaints)

• Legal Module in Collection implemented

• Learning Management Platform (LUMOS) launched on iOS

• Omni Docs API enabled on "SME Finflex" application

• Personal Loan Lead Generation Platform (for managing leads through Digital Marketing and Social Media campaigns)

• Data Exchange Module(DEM) for West and North Grid (Clearing House Interface)

• Software Asset Management Solution implemented

• SAS Viya Unified Insights Model Manager (MM) platform implemented

• Automation of NPA and Collateral Management implemented

• Software Defined WAN (SDWAN) solution implemented

• Call Center Application and Server Hardware refresh completed

• Database Encryption for core banking system implemented

• Database Access Monitoring (DAM) implemented eGInnovation monitoring tool for infrastructure and application performance monitoring implemented

• Near DR Infrastructure completed

• DMARC (Domain-based Message Authentication, Reporting and Conformance) implemented to prevent unauthorized usage of "dcbbank" domain

• Successfully hosted "INNOVATION CARNIVAL 2.0" at New Delhi in September 2019 and at Mumbai in February 2020

• Aadhaar eKYC middleware system implemented

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 which comprise of an Enterprise Data Lake and GPU servers. This has assisted businesses and functions in several "Use Cases" in the field of Machine Learning & Artificial intelligence (ML/AI) such as building predictive models like default behaviour scorecards, using techniques such as time-series forecasting & 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. The unit has deployed several new technologies to enhance its capabilities to support growing business needs.

OPERATIONS

The Bank's focus is on creating a "Centre of Excellence" at Operations by delivering delightful experience to customers. During the year, the focus of operations units has been to sharpen the execution through various process improvements / automation and enhancing the staff skills and providing a more positive work environment while keeping a tight vigil on costs and productivity. The Operations unit is firmly moving towards modernization and adoption of contemporary solutions while gearing up for scale and volume.

Highlights of Operations in FY 2020:

• Successfully migrated Clearing unit to DEM (Data Exchange Module) of NPCI for Northern and Western Grids.

• Improved efficiency in Currency Management Services Unit (provides cash logistics for branches and ATMs)

• Introduced e-CIT (enhanced risk management and controls). Also, regulatory guidelines with respect to cash vans have been implemented

• Stabilized Electronic Banking Operations (EBO) (processing of payments, settlements and reconciliations). This unit operates 24 X 7 including holidays

• Similarly, NEFT and RTGS payments have seen steady growth in volumes. The payments unit have tirelessly processed thousands of transactions without operational errors.

• Treasury Back Office providing steady operations through experienced resources

• IDAM (Identity and Access Management) policy, new system and revamped process implemented

• CMS Operations continues to support branches and customers for bulk payments and cheque collection products.

INTERNAL AUDIT (IA) AND VIGILANCE

IA function of the team comprises of professionals, experienced bankers and staff with specialisation in specific areas of banking. As a bank we have been continuously trying to have the right mix of people in the function to be an efficient supporter for Business Units. The IA function is monitored and overseen closely by the Audit Committee of the Board (ACB), which comprises of domain experts and professionals who on a periodic basis review the performance of IA and provide inputs and guidance in order to improve the functioning of IA. Our approach to induct new professionals and groom them, along with hiring ex-bankers with rich experience in various areas of Banking for insourcing concurrent audits and conduct certain specialised audits, has been giving satisfactory results. IA has an elaborate framework of risk assessment, audit planning and execution process. The Continuous Monitoring model which was implemented last year has been enhanced in FY 2020 into a full-fledged application. This will enable IA to conduct reviews on a continuous basis. This has the potential to identify controls gaps and process issues on an ongoing basis. The system of identifying root cause for IA findings has helped in analysing systemic control issues in the Bank.

In FY 2020, IA conducted 229 branch audits, 25 periodic audits, 7 compliance audits, 19 snap audits and 12 IT audits. In order to improve the effectiveness, the Bank has in-sourced most of the Concurrent Audits. IA continues to enhance the technical and soft skills of the audit team through various internal and external training programs.

The Vigilance unit has created process and systems to provide regulatory reporting in a timely manner. The unit has initiated Fraud Risk awareness training sessions at various locations in the Bank. The Fraud Risk Monitoring unit has implemented an internal fraud alert generation tool to identify suspected transactions. The unit has also reviewed various alerts and underlying parameters. Learnings have been incorporated to make the fraud system more robust. On an ongoing basis, the Vigilance unit provides inputs and recommendations to various systems and platforms for strengthening controls for fraud prevention.

COMPLIANCE AND RISK BASED SUPERVISION BY THE RBI

The Bank's Compliance unit is independent of its business and operation functions. The Compliance function has created detailed procedures to ensure compliance with applicable regulations. In addition to ensuring timely submission of various returns to regulatory and statutory authorities, the Compliance unit also 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. The Bank is covered under the Banking Ombudsman Scheme of the RBI wherein escalated customer complaints received through the Office of the Banking Ombudsman are addressed under a well-defined Customer Grievance Redressal mechanism. To strengthen the internal grievance system, an internal Ombudsman has also been appointed in line with RBI guidelines. The Compliance function also has a separate unit for Compliance Monitoring and Testing on an ongoing basis.

HUMAN RESOURCES (HR)

The Bank strives to provide an environment where people can learn, grow and progress while delivering sustainable results for the Bank. The main focus is to create a unique caring culture and nurture talent for future business expansion and growth. Through sophisticated tools, training and interventions, continuous efforts are made to improve skill sets, team work, productivity, empathy and adherence to compliance and controls.

Highlights of HR in FY 2020: -Talent Attraction & Engagement

• In order to support business growth, the HR unit strengthened the recruitment process which helped increase the Bank's headcount to 6,845 from 6,134 at the end of the previous year.

• Strengthened a unique employee referral scheme "LINK" that contributed 37% of total hiring while hiring through internal channels contributed 52%. This in turn helped reduce costs, improve employee attrition and productivity.

• Filled up 355 positions using internal talent pool through the program "Own Your Future"

• Scaled up "The Top Recruit" program and campus engagement covering over 5,000 participants from 200 B-Schools in cities like Bengaluru, Delhi, Kolkata and Maharashtra

• Periodically communicated through "High Decibel" (an exciting in-house magazine) information about official and personal milestones of employees

• Conducted across India in every region "DCB Allympics" a mega sports event for employees

• Facilitated "EORO (Each One Reach One) Supervisor Survey" for "first time" supervisors. Feedback received was shared with People Forum and respective supervisors. Appropriate counselling also done of supervisors who had gaps in people management skills

• "DCB Spotlight" (regional recognition forum) held in 12 locations and 370 employees felicitated. The Bank clubbed Spotlight with Funkaar Beats, a regional talent contest for employees to showcase their talent in music and dance and the winners are then given a chance to perform in the signature mega national event "DCB Movers & Shakers"

• "Hour HR" (signature live radio show) enabled employees interact directly with the HR team and seniors

• Reached over 83,000 followers on LinkedIn.

Learning & Development

• Continued a strong culture of learning through the Individual Learning & Development Scorecard (ILDS) spanning the entire employee life cycle

• Conducted mandatory training programs inter alia Employee Induction, Prevention of Sexual Harassment, Business Continuity Planning & Disaster Recovery and Awareness on Information Security. The Bank has an online learning academy "LUMOS", which facilitates digital learning. 99% of employees (joined on or before December 31, 2019) completed at least one classroom / online program and 92% of employees used at least one digital module in LUMOS.

• Continued Bank's signature programs (used for building leadership pipeline) namely SPRINT, Grow with Us-Budding Branch Manager, Budding Branch Operations Manager, RISE and ASPIRE

• Partnered with Moody's Analytics and other accredited entities to certify employees in Audit, Credit, Compliance, Treasury Operations and Finance. More than 600 employees trained under such Capacity Development initiatives in the

• Strengthened training on Anti Money Laundering and Know Your Customer for new employees and provided refresher course on Prevention of Money Laundering Act for existing employees especially frontline

• "Mujhe Pata Nahin Tha" series launched using "comic strips" and capsule training on "Ethics" shared with employees emphasizing the importance of Code of Conduct

• Separate trainings conducted to reiterate "Gender Sensitisation".

• Improved compliance to process and controls through "Project Prayas" and Project First Time Right" for branch staff

• Once again organized a unique "Lead Generation" sales centric training program that helped generate business leads. This program specifically targets low performers in order to improve productivity and reduce employee attrition

• Continued programs such as ESQ (service excellence), ABCD (supervisor capability) and CREW (promotes team work). These programs help strengthen the culture and ethos of the Bank.

• Conducted a two day "Knowfest" in Hyderabad where all business and functions displayed their achievements and capabilities in an exhibition stall format. The whole event had a festival look and feel. This was followed by intense

• "Master Class" sessions which helped to provide useful knowledge and information to the top team members.

Organisation Development & Talent Management

• Promoted 57 % of employees who participated in the Bank's unique promotion process

• Job evaluation / sizing exercise (comparing different jobs based on knowledge, impact and accountability) completed for more than 900 roles

• Conducted annual S-Peak survey (designed to provide feedback on people management to supervisors) registering almost 100 % participation. Results of the survey (report card) shared with 814 supervisors and their business heads.

• Completed DCB Bank Internal ESQ survey (designed to measure internal customer satisfaction). Almost 100% of employees provided feedback on various units. The overall Bank score was 82%, an improvement over last year.

CUSTOMER SERVICE

Delighting customer in every interaction is the core aim of the Bank. Customer complaints and satisfaction levels are monitored by the Managing Director and Chief Executive Officer along with the Senior Management team on a regular basis. The Bank has constituted an independent Service Excellence team to analyse customer complaints, identify root causes, make suggestions for process improvements and works with the various businesses and functions to continuously improve service levels. The Bank has a "Centralised Complaint Management" system and rigorous standards to ensure that customer queries and complaints are not missed out and are resolved 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 nine 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 regularly conducts review of progress on six pillars with key stakeholders, weekly 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 progress on Service Excellence is monitored by the Customer Service Committee (CSC) of the Board.

MARKETING/BRAND AWARENESS

The Bank continuously undertakes numerous measures to create brand awareness and improve its brand presence and image. The Bank conducted low cost micro marketing activities throughout the year in the branch neighbourhood. As part of its culture to engage directly with customers and prospects in informal forums, the Bank conducted several customer meet events, golf tournaments, health camps, movie screenings, drawing competitions, mega musical programs and many such activities. In FY 2020, the Bank executed 10,000 odd micro marketing activities and events across its branch footprint.

Throughout the year, the Bank conducted Above the Line campaigns (Print, Outdoor, Cinema and Digital) to promote Term Deposit products. This resulted in huge visibility, awareness and business volumes. The Bank also organized innovative branding campaigns like Tea Cup Branding, Newspaper Stickers and at Airports which also resulted in increase in customer walk-ins in the branches DCB Remit micro site www.dcbremit.com went live and was promoted continuously on Social Media and digital channels. This is a unique and convenient remittance product especially for customers whose children are studying overseas.

Throughout the year various theme based creative communication were posted on DCB Bank Facebook and Instagram page to engage with the increasing number of followers.

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 a quarterly 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:

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/for-shareholder

   

   

DCB Bank Ltd Company Background

Nasser MunjeeMurali 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
AuditorDeloitte Haskins & Sells
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
Nasser Munjee Part Time Chairman 2020
Murali M Natrajan Managing Director & CEO 2020
C Narasimhan Independent Director 2020
Shaffiq Dharamshi Director 2020
Rupa Devi Singh Independent Director 2020
Iqbal Ishak Khan Director 2020
Rubi Chaturvedi Company Secretary 2020
Ashok Barat Independent Director 2020
Amyn Jassani Addtnl Independent Director 2020
Shabbir Merchant Addtnl Independent Director 2020
Somasundaram Palamadairamaswamy Addtnl Independent Director 2020
Rafiq Ramzanali Somani Addtnl Independent Director 2020

DCB Bank Ltd Listing Information

Listing Information
BSE_500
CNX500
BSESMALLCA
BSEALLCAP
BSEFINANCE
SML250
MSL400
BSEDFINRVG
BSEPVTBNK
NFTYMSC400
NFTYSC250

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

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