DCB Bank (DCBBANK) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 net profit was Rs. 28.96 crore, up 35.8% YoY; growth reflected securities trading gains, lower average deposit costs and expense control.

• Deposits grew 46.9% to Rs. 2,766.62 crore and bank credit rose 60.39% to Rs. 1,638.13 crore, both well ahead of banking-system growth.

• Transformation priorities included technology deployment, customer-focused products, broader branch reach and stronger risk and treasury capabilities.

Financial highlights

• Gross income reached Rs. 330.33 crore versus Rs. 252.99 crore; operating profit before provisions and tax was Rs. 62.98 crore versus Rs. 29.95 crore.

• Interest earned was Rs. 263.21 crore, up from Rs. 215.65 crore; other income rose to Rs. 67.12 crore from Rs. 37.35 crore.

• Total assets and liabilities were Rs. 3,326.87 crore, versus Rs. 2,359.64 crore; investments were Rs. 1,150.41 crore and advances Rs. 1,638.13 crore.

• EPS was Rs. 17.44 per Rs. 10 share; net worth exceeded Rs. 250 crore.

Outlook and guidance

• PowerBanker was planned for rollout across all branches by March 2001; phase I was operational at Versova and included customer-interface capabilities.

• Nine additional branches had in-principle RBI approval, with openings planned during FY2000-01; locations included Mumbai, Goa, Secunderabad, Virar and Chennai.

• Strategic priorities included an ambitious investment program, performance-led organization, skills-building alliances and focused Corporate Finance, Personal Financial Services and Treasury businesses.