DEVELOPMENT CREDIT BANK LTD
Q 3 FY 2007 Results

HIGHLIGHTS

• Net Profit of Rs.28 Mn in Q 3-FY 2007 compared to a loss of Rs.24 Mn in Q3 FY 2006.
• Net profit after tax of Rs.78 Mn in 9 M FY 2007 compared to a loss of Rs.366 Mn for 9 M –FY 2006.
• Advances at Rs.21.5 Bn.-with a Growth of 12% over December 2005.
• Deposits at Rs. 36.9 Bn with a Growth of 20% over December 2005.
• Net NPAs at 2.78 % as against 4.92% as at December 2005.
• Capital Adequacy Ratio up at 13.54 % from 9.21% in December 2005.
• Adjusted Book Value per Share up at Rs.16.29 from Rs.5.99 at December 2005.
  

Business Update

• Hugely Successful IPO –36 times over subscribed.
• Approval from Shareholders for an increase in FII cap from 24% to 49% with an enabling resolution for Qualified Institutional Placement upto Rs.225 crores.
• DCB’s enhanced Certificate of Deposits program from Rs.700 crores to Rs.1000 crores has been rated P1+ by CRISIL.
• DCB’s Corporate Office has been shifted to new premises at Prabhadevi.
• Launched three new products on the Deposits front-
• Privilege Banking.
• Corporate Payroll Accounts and
• TRIO, a three in one product combining TD, Zero Balance SB with Sweep facility and Free Accident Insurance for TD value.
• On the Asses front, launched
• Construction Equipment Loans
• Commercial Vehicle Financing
• Prime Lending Rate increased by 75 bps , besides increasing lending rates for all classes of retail assets across the board by 75 bps, with effect from December 14,2006.
• GOLD QUEST PROGRAM encompassing Bank’s Vision and Values rolled out across DCB locations Pan India.
• ‘Customer for Life’, the Service Excellence training program rolled out covering all DCBians,with an aim to achieve Gold Standard in Customer Service.
• New Senior Management Team with a proven track record in leadership and driving a performance oriented culture at the helm. Further reinforced with the induction of Mr. Kartik Mehta as Head-Micro Finance and Mr. H Vijayabalan as Chief Internal Auditor.
• Focus on Priority Sector Advances.

Summary Results & Prior Period Comparison

Profitability Analysis

• Operating Profit up more than 400% on Q on Q
• Improved Net Interest Margin at 2.45% compared to 1.71% at Dec05
• Net Interest Income up 47% over Dec 05.
• Non Interest Income to total income at 25.5% as against 22.12% for 9M-FY 2006
• Total Income increased 42% on YOY and 57% on Q on Q basis .
• Cost to Income Ratio decreased from 112% in 9M-FY 2006 to 84% 9M-FY 2007

Trends in Quarterly Performance

Quarterly Net Profit

Summary Balance Sheet & Prior Period Comparison

Major Trends

• Steady Growth in Deposits and Advances
• Balance Sheet Growth by 21% over December 2005 and 19% over March 06.
• Increased NPA Coverage at 77%- up from 64% in December 2005.
• Capital Adequacy Ratio at a comfortable 13.54 %-up from 9.21% in December 2005
• Growth in CASA by 21% over December 05.