AUDITED FINANCIAL RESULTS
For the year ended 31st March 2008
1
PROFILE
70 Yrs of banking - Founded on 26th May, 1938 as “Devkaran Nanjee
Banking Company Ltd.”;
Rechristened as ‘The Dena Bank Ltd’ in Dec’66;
Nationalized on 19th July, 1969 - rechristened as Dena Bank;
Professional Board of Directors— consisting of Banking Professionals,
Eminent academicians, Qualified Chartered Accountants, etc. including
shareholder Directors;
Two whole time Directors : Chairman & Managing Director & Executive
Director;
Well diversified stable customer base (8 Million) supported by wide
branch network;
Mid size Bank with Branch concentration in Industrially developed &
vibrant Western India – Financial Hub of the country;
Initial Public Offer in 1996; Follow on Issue in 2005;
Govt of India Stake at 51.19 %
2
FORERUNNERS IN
Savings Deposit Scheme for MINORS;
KRISHI SAKH PATRA (Credit Card) for Farmers in rural India in 1989;
First FULLY COMPUTERISED BRANCH in PSU Banks (1991) : Nepean
Sea Road, Mumbai;
First DRIVE-IN-ATM in Banking Industry in India (1996) : Juhu VileParle, Mumbai (Bombay);
Specialized Training Institute for Computer Literacy : Dena Institute of
Information Technology (DIIT), Mumbai (1997);
Customer Service Rating of Branches.
3
SNAPSHOT
Snap Shot as at 31st March ‘08
1160
Branches
316
ATMs
Net Loans
23024†
Deposits
33943 †
CRAR
11.09%
BVPS – Rs.57.35
†
Net Profit
360 †
Amount in Rs. Crore
4
KEY INDICATORS
[Rs. Crore]
F.Y.
2005-06
F.Y.
2006-07
2007-08
Growth
[%]
Quarter
Mar’07
Mar’08
Growth
[%]
Total income
2199.17
2510.04
3154.02
25.66
684.24
882.98
29.05
Total expenses
1598.80
1874.67
2467.58
31.63
499.97
664.05
32.82
Operating Profit
600.37
635.37
686.44
8.04
184.27
218.93
18.81
Operating profit
without profit on
sale of NPAs
475.04
565.71
686.44
21.34
181.04
218.93
20.93
Provisions
527.38
433.81
326.65
[24.70]
140.47
107.94
[23.16]
Net Profit
72.99
201.56
359.79
78.50
43.80
110.99
153.40
NIM - %
2.95
3.00
2.75
3.27
2.85
EPS [Rs.]
[non annualized]
2.54
7.03
12.54
1.53
3.87
Return on Assets
[Annualized] - %
0.29
0.71
1.06
0.58
1.21
5
KEY INDICATORS
[Rs. Crore]
31.03.06
31.03.07
31.03.08
Aggregate Deposits
22197.72
26506.01
32232.39
Inter Bank Deposits
1425.34
1183.90
1710.79
Total Deposits
23623.06
27689.91
33943.18
Gross Advances
14747.79
18683.07
23381.16
8635.28
9324.54
10335.46
Gross NPA Ratio [%]
6.44
3.98
2.45
Net NPA Ratio [%]
3.04
1.99
0.94
10.62
11.52
11.09
Investments
CRAR [%]
6
NET INTEREST INCOME
F.Y.
[Rs. Crore]
2005-06
Interest Income
2006-07
2007-08
Growth
[%]
Quarter
Mar’07
Mar’08
Growth
[%]
1760.13
2118.52
2710.05
27.92
584.49
739.24
26.48
Advances
984.85
1391.80
1953.37
40.35
396.73
545.22
37.43
Investment
714.09
665.09
726.05
9.17
170.50
185.67
8.90
Inter Bank
36.87
39.88
19.92
[50.05]
17.14
2.34
[86.35]
Others
24.32
21.75†
10.71†
[50.76]
0.11
6.01
1037.45
1263.16
1817.14
43.86
351.57
500.99
42.50
973.37
1189.67
1718.11
44.42
328.73
471.35
43.39
64.08
73.49
99.03
34.75
22.84
29.64
29.77
722.68
855.36
892.91
4.39
232.91
238.25
2.29
Interest Expense
Deposits
Others
Net Interest
income [NII]
† includes interest on income-tax refund of Rs.21.56 crore for the year 2006-07 & Rs.10.08 for the year 2007-08
7
NON INTEREST INCOME
[Rs. Crore]
Commission
F.Y.
2005-06
2006-07
2007-08
Growth
[%]
Quarter
Mar 07
Mar 08
Growth
[%]
87.44
125.20†
120.94
[3.40]
31.16
34.69
11.33
of which from
3rd party products
4.82
5.52
9.36
69.57
1.69
3.42
102.37
Govt. Business
4.79
6.00
6.88
14.67
2.35
1.94
[17.45]
Locker rent
7.17
8.48
8.58
1.18
2.20
2.35
6.82
125.33
39.45
90.02
128.19
3.23
8.48
162.54
Profit from sale of Properties
56.32
0.00
29.95
0.00
30.24
Forex Exchange
25.26
30.76
42.03
36.64
11.76
7.48
[36.39]
Process fee
22.59
28.37
30.10
6.10
10.08
11.24
11.51
[19.96]
[30.72]
[34.15]
11.16
[8.63]
[9.00]
4.29
Incidental charges
7.70
10.58
11.38
7.56
4.09
3.69
[9.78]
Supervision charges
4.42
5.42
7.04
29.89
1.98
2.18
10.10
Recovery in written off
advances
77.38
155.60††
114.29
[26.55]
37.02
43.23
16.77
Other Misc.
52.55
26.86
32.37
20.51
6.86
11.51
67.78
439.03
391.53
443.97
13.39
99.75
143.74
44.10
Profit from Securities
Amortization of premium on
investments [HTM]
Total non interest income
† includes commission income of Rs.16.93 crore due to change in accounting policy
†† includes Rs.69.66 crore recoveries on account of sale of NPA assets.
8
OPERATING EXPENSES
F.Y.
[Rs. Crore]
Quarter
2006-07
354.25
384.08
370.85
[3.44]
86.12
85.77
[0.41]
24.98
28.65
33.75
17.80
7.51
8.53
13.58
Postage/Telephone
9.45
15.93
9.31
[41.56]
8.61
2.23
[74.10]
Printing/Stationery
8.45
9.52
10.34
8.61
2.30
2.61
13.48
Depreciation
32.41
31.78
29.45
[7.33]
5.92
8.26
39.53
Lighting
15.50
16.57
19.38
16.96
3.80
4.08
7.37
Rent & Taxes
30.06
32.00
36.95
15.47
7.13
10.45
46.56
Advertising
12.77
11.05
9.47
[14.30]
3.76
4.39
16.76
5.37
5.21
7.64
46.64
1.63
2.33
42.94
17.30
17.96
19.13
6.51
4.68
4.71
0.64
0.00
0.00
35.65
0.00
8.65
Other Expenses
50.81
58.76
68.51
16.59
16.94
21.05
Total Expenses
561.35
611.51
650.44
6.37
148.40
163.06
Insurance
Auditors Fees
Repairs/Maintenance
Core Banking
Solution
Mar 07
Mar 08
Growth
[%]
2005-06
Staff Expenses
2007-08
Growth
[%]
24.26
9.88
9
PROVISION & CONTINGENCIES
F.Y.
Quarter
[Rs. Crore]
Mar 06
Mar 07
Mar 08
Mar 07
Mar 08
Non Performing Loans
236.92
287.89
264.00
112.13
127.12
Tax expense
[21.46]
31.46
[42.17]
[8.25]
[128.34]
Investment Depreciation
270.69
83.02
27.58
23.32
30.15
Standard Assets
42.92
32.86
78.18
13.18
78.16
Other provisions
[1.70]
[1.42]
[0.94]
0.09
0.85
Total Provisions
527.37
433.81
326.65
140.47
107.94
10
RESOURCES
[Rs. Crore]
31.03.06
31.03.07
31.03.08
% growth
Current Deposits
2327.10
3214.41
3015.97
[6.17]
Savings Deposits
7930.63
9043.59
10239.19
13.22
Term Deposits
11939.99
14248.01
18977.23
33.19
Aggregate Deposits
22197.72
26506.01
32232.39
21.60
43.65
44.51
41.13
Inter Bank Deposits
1425.34
1183.90
1710.79
44.50
TOTAL DEPOSITS
23623.06
27689.91
33943.18
22.58
0.99
450.94
394.61
[12.49]
CASA [%]
Borrowing
11
RESOURCES
33943
35000
30000
27690
23623
25000
20000
15000
10000
5000
0
2005-06
2006-07
Deposits
2007-08
12
DEPLOYMENT
[Rs. Crore]
Gross Advances
31.03.06
31.03.07
31.03.08
Growth over
Mar 07
14748
18683
23381
25.15
6074
6662
8096
21.53
2363
2200
2794
27.00
Others
3711
4462
5302
18.83
PS credit to NBC [%]
42.20
45.17
43.32
Retail Credit
2249
3423
4297
25.53
S.M.E
2388
3158
3885
23.02
CD Ratio [%]
62.43
67.47
68.88
Gross investment
8635
9325
10335
Priority Sec. Advance
Agriculture
10.83
13
DEPLOYMENT
Growth [%]
[Rs. Crore]
Mar 06
Mar 07
Mar 08
[y on y]
Net Advances
Net Investments
23024
25000
18303
14231
18303
23024
25.79
8571
9235
10283
11.35
10283
10500
10000
20000
9235
14231
9500
15000
9000
8571
10000
8500
5000
8000
0
7500
Mar '06
Mar '07
N et Advances
Mar '08
Mar '06
Mar '07
Mar '08
N et Investments
14
INVESTMENT
[Rs. Crore]
31.03.07
31.03.08
Held to Maturity
7463.15
[80.04%]
8622.00
[83.43%]
Available for Sale
1858.56
[19.93%]
1612.26
[15.60%]
2.82
[0.03%]
100.72
[0.97%]
9324.53
10334.98
Held for Trading
Total
[Rs. Crore]
31.03.07
[Rs. Crore]
31.03.08
Govt Securities
7646.76
8475.53
Other Approved
Securities
163.53
119.78
Shares / Equity
145.20
227.73
Debentures / Bonds
909.16
899.75
21.72
21.72
438.16
590.47
9324.53
10334.98
31.03.08
Subsidiaries / Jt.
Ventures
SLR
7664.65
[82.20%]
8595.31
[83.17%]
Non-SLR
1659.88
[17.80%]
1739.67
[16.83%]
Others
9324.53
10334.98
Total
Total
31.03.07
15
CAPITAL ADEQUACY
[Rs. Crore]
31.03.06
31.03.07
31.03.08
Tier I capital
848.23
1086.81
1535.55
Tier II capital
662.97
979.37
986.38
1511.20
2066.18
2521.93
14225.29
17941.01
22742.25
Core CRAR – Tier I
5.96
6.06
6.75
CRAR on Tier II
4.66
5.46
4.34
10.62
11.52
11.09
848.23
1086.81
1410.55
Total capital funds
Total RWAs
CRAR [Total]
Net Worth
16
ASSET QUALITY
[Rs. Crore]
31.03.06
31.03.07
31.03.08
Gross NPA
949.40
744.48
572.60
Net NPA
432.85
364.80
215.43
Gross NPA Ratio [%]
6.44
3.98
2.45
Net NPA Ratio [%]
3.04
1.99
0.94
499.46
372.58
347.62
52.61
50.04
60.71
NPA Provision
Provision coverage
17
ASSET QUALITY
25000
Gross NPA brought down to below
2.5% (i.e. 2.45%)
23024
7
6.44
15000
6
18683
20000
5
14748
4
3.98
Net NPA brought down to below 1%
(i.e. 0.94%);
2
2.45
5000
1
0
0
Mar '06
NPA Provision Coverage Ratio
increased from 50.05% to 60.71%;
Mar '07
Gross Advances
Mar '08
Gross NPA
23024
25000
Aggressive efforts on Recovery in
NPAs & Written off A/cs through
action under SARFAESI & One
Time Settlements;
3
10000
3.04
20000
3.5
3
18303
2.5
15000
14231
2
1.99
1.5
10000
1
5000
0.94
0
0.5
0
Mar '06
Mar '07
Net Advances
Mar '08
Net NPA
18
ASSET QUALITY
[Rs. Crore]
Mar 06
[FY]
Mar 07
[FY]
Mar 08
[FY]
Variation
[%]
Gross NPA
Opening Balance
1147.54
949.40
744.48
227.07
247.29
184.86
[25.25]
31.41
76.61
114.07
48.90
Write off
273.63
414.78
288.96
[30.33]
Total Reductions
532.11
738.68
587.89
[20.41]
Slippage & Debit Operations
333.97
533.76
416.01
[22.06]
Closing Balance
949.40
744.48
572.60
Less:
Cash recoveries
Upgradations
Add:
19
FINANCIAL RATIOS [cost/yield]
[Financial Year]
Mar’06
Mar’07
[Quarter]
Mar’08
Mar’07
Mar’08
Cost of Deposits [%]
4.58
4.89
5.90
5.09
6.08
Cost of Funds [%]
4.66
5.19
5.95
5.45
6.13
Yield on Advances [%]
7.80
8.66
10.11
9.13
10.08
Yield on Investments with
POSOI [%]
9.19
7.74
7.74
7.39
7.58
Yield on Investments
without POSOI [%]
7.82
7.52
6.88
7.39
7.26
Yield on Funds [%]
7.46
7.84
8.22
8.08
8.35
20
FINANCIAL RATIOS
[F. Y]
Mar’06
Mar’07
[Q]
Mar’08
Mar’07
Mar’08
Int. Income as %age to avg.
working funds
7.03
7.47
7.97
7.72
8.04
Non Int. Income as %age to
avg working funds
1.89
1.38
1.31
1.32
1.56
Int. spread as %age to avg
working funds (NII/Avg.
Gross Assets)
2.88
3.02
2.63
3.07
2.59
Operating Profit as %age to
avg working funds
2.48
2.24
2.02
2.43
2.38
Net Interest Margin [%]
[NII / Income generating
assets]
2.95
3.00
2.75
3.27
2.85
21
FINANCIAL RATIOS
[F. Y]
Mar’06
Mar’07
[Q]
Mar’08
Mar07
Mar08
Earning Per Share Rs.
[non-annualized]
2.54
7.03
12.54
1.53
3.87
Cost Income Ratio [%]
47.50
49.04
48.65
44.61
42.69
Return on Assets [%]
[annualized]
0.29
0.71
1.06
0.58
1.21
Return on Networth [%]
[annualized]
9.02
21.21
40.20
16.68
34.81
Profit Per Branch
[in Rs. Lacs] [annualized]
7.13
19.46
33.91
4.23
41.84
Profit Per Employee
[in Rs. Lacs] [annualized]
0.72
1.99
3.61
0.43
4.46
22
FINANCIAL RATIOS
[F. Y]
31.03.06
Coverage Ratio [%]
31.03.07
31.03.08
1.56
2.26
3.41
Book Value Rs.
[including Revaluation Reserve]
39.11
46.85
57.35
Book Value Rs.
[excluding Revaluation Reserve]
29.57
37.89
49.18
Business Per Branch [in Rs. Crore]
37.51
44.76
52.42
3.78
4.58
5.59
Business per Employee [in Rs. Crore]
23
ATMs – 316 ATMs installed with additional access to over 20,000
ATMs through various tie-up arrangements for benefit of the
Bank’s ATM cardholders.
Dena International Gold debit Card to HNI customer with VISA
affiliation;
“Dena I Connect” – the internet banking services for customer of
its CBS Branches, to access their account information through
internet in the form of a) Balance inquiry, b) Mini Statement (last
10 transactions), c) Detailed Statement of accounts, d) Cheque
book inquiry, e) Cheque Stop request, f) Direct Tax e payment, g)
Fund Transfer (self), h) Outward cheque inquiry etc.
24
Dena Recurring Depositors Insurance Scheme
– Tie-up arrangement with Life Insurance Corporation of India.
– Life insurance cover to Recurring Deposit account holder to
the extent of the Maturity value of the Recurring Deposit,
against risk of death during the tenure of Recurring Deposit,
by paying a nominal annual Insurance premium.
– Full maturity value of Recurring Deposit in all cases of
unfortunate death of depositor during the period of RD to
family / dependants of depositor.
Dena Tractor Borrowers’ Life Insurance Scheme
– Life insurance cover to Tractor loan borrowers to the extent of
outstanding loan against risk of death during tenure of loan.
– In case of unfortunate death of Tractor Loan Borrower during
currency of loan, LIC will settle the claim to liquidate
outstanding loan amount.
25
NEW INITIATIVES AND THRUST
Expanding Outreach
25 new Branches were opened during the year including the first
foot print in the state of Himachal Pradesh, thus increasing the
total number of branches from 1135 to 1160;
62 more branches were awarded ISO Certification during the
year, taking the total tally of ISO Certified Branches to 287;
26
NEW INITIATIVES AND THRUST
Technology
The Bank rolled out 93 branches during the year 2007-08, taking the total
CBS branches to108 covering 50 centers and 22 states. With this, 55% of
Bank’s business is covered under CBS.
Bank has set up its own network “DENANET” using 651 leased lines, 253
ISDN lines, 26 V-SATs and 598 Dial up lines connecting 1068 branches
and 36 administrative offices spread over 300 centers;
47 New ATMs were installed during the year 2007 - 2008, taking the total
tally to 316 ATMs across 142 centers, of which 49 were at off-site
locations;
As a part of financial inclusion, the ATM facility is extended to illiterate
customer by installing 2 Bio-metrics ATMs, which can be operated by
thumb impression of customers.
27
NEW INITIATIVES AND THRUST
Technology
The Bank has ATM sharing arrangement with SBI, Corporation Bank,
through CASHTREE, VISA, CASHNET & NFS tie ups, enabling more
than 20000 ATM access points & more than 3.50 lacs Merchant
Establishments (MEs) in India and more than 1 million ATMs & 24 million
MEs abroad, to bank’s customers; International Debit / ATM Card base
stood at aprox. 6 lacs;
The Bank has number of value added services through the ATMs i.e.
Mobile Pre-paid Top-Ups & Post paid bill payment etc. Debit card
customer can also pay through internet;
The bank is offering host of other techno enable products i.e. Mobile
Banking, Tele banking, Dena Bill Pay, E- payment of indirect taxes and
RTGS / NEFT etc;
28
NEW INITIATIVES AND THRUST
Human Resources Development
Major initiative taken on building Leadership Skills across cadres;
Engaged the services of a consultant of repute to advise on the strategies
for repositioning of the Bank;
255 new officers inducted during the year, to infuse young and
specialised talent in different specialised areas viz. Credit, IT, Marketing,
Agriculture and Treasury etc.;
Further recruitment of 649 Officers, 649 Clerks and 159 sub-staff
proposed for the year 2008-09.
Continuing with the process of customer-centric grooming of frontline staff
at the branches.
29
NEW INITIATIVES AND THRUST
Garnering Fee Based Income
Tie-up arrangement with 3 more Mutual funds during the year in addition to existing
8, thus providing a bountiful basket of varied products from the leading mutual funds
viz. UTI, ICICI Pru, LIC, Franklin Templeton, HDFC, Reliance, ING, Kotak Mutual,
TATA AIG, Birla Sunlife, SBI Mutual Fund, for selling their products;
Tie-up with LIC for selling Life Insurance Products and entered into a referral
arrangement with Oriental Insurance for Non-life products. During the year two new
products i.e. ‘Oriental Health Royal’ Medi-Claim Scheme & Personal Accident policy,
were launched;
Introduced ‘Dena Grah Swami Suraksha Yojna’ in association with LIC to provide
Loan linked Life Insurance Cover to a Housing Loan Borrower during the currency of
a the Loan;
Facility of franking of stamps extended beyond Mumbai at 11 more branches at New
Delhi and in the state of Rajasthan;
Rupee Drawing Arrangement with UAE Exchange for inward remittances of NRI
funds similar to existing arrangements with Western Union Money & Times of30
Money.
NEW INITIATIVES AND THRUST
Priority Lending
Collaborated with Gujarat Green Revolution Co Ltd for promoting lending under
Micro Irrigation Scheme – Drip & Sprinkler Irrigation
‘Dena Swachha Gram Yojna’, a scheme to provide collateral free finance for
construction of Toilets / Bathrooms in rural areas;
‘Dena Paryavaran Suraksha Yojna’, a scheme to finance auto rickshaw owners for
acquiring / fitting CNG / LPG gas kit in old auto rickshaws, to curb environmental
air pollution. The Bank has so far financed 900 such auto rickshaw owners, thus
contributing to a safer environment, in a subtle way;
Tie up with NBHC for financing to farmers and others against pledge of godown
receipts.
MoU signed with M/S Zero Microfinance Saving Support Foundation as Service
provider and with M/S A Little World As technology provider for the financial
inclusion in 2 districts of Gujarat covering 135 villa
31
NEW INITIATIVES AND THRUST
Corporate Social Responsibility
Continues to sponsor One Girl Child at each of the villages in its
command area of operation in the state of Gujarat, for pursuing
secondary education under the scheme Dena Shiksha Protsahan
Yojana, and 521 scholarship have been provided under the scheme so
far;
Adopted 51 villages in the State of Gujarat for all round development;
Sponsored 2 RUDSETIs at Mehsana & Bhuj in the state of Gujarat to
provide training to rural youth and women enabling them acquire skills
for self-employment. More than 2864 rural youth trained so far;
Pro-actively promoting the Innovators with need based & collateral free
financing;
32
NEW INITIATIVES AND THRUST
Road Map ahead
Plans to open at least 26 new branches and 12 Retail Asset
Centres during the current year;
342 more Branches are planned to be rolled out under CBS
during FY 2008-09 thus, covering 74% of the Bank’s business;
To expand outreach and facilitate rural centres with a greater
number of bio-metric ATMs;
New avenues of fee based income viz. tie ups with more mutual
funds / exchange houses etc.;
Committed to reposition itself as a robust medium sized Bank
with strong fundamentals;
Plans to expand Depository business and other related services.
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Thank You
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