CHAIRMANS STATEMENT 2014 - 15
There comes a time in the life of an institution undergoing transformation when itemerges from the problems that beset it in the past. This is such a time for DCB Bank. Inrecognition of this the Bank decided to rebrand ourselves simply as DCB Bank around twoyears ago. It has taken almost a decade of hard transformative work to emergeasDCBBankasitis today. in our stable Gross and Net A large part of the credit must go tothose who made it possible; The Board of Directors who set the objectives and operationalimperatives the CEO (who joined us in 2009) and his management team that created anappropriate strategy and executed it with sensitivity and precision the employees of DCBwho have worked extraordinarily hard in each and every aspect of the Bank. In their ownsmall way each unit of the Bank has strived for excellence and continuous improvement.This has helped to grow the Bank and deliver consistent predictable and quality results.
I would also like to sincerely thank our shareholders for their support and regulatorsfor their guidance.
What does all this amount to? DCB Bank is the first the country to announce annualresults within a fortnight of March 31 2015. This demonstrates transparency and helps tofurther build our credibility with our stakeholders. Over time we have created a strongfinance function that is assuring board and assisting the management team with timely andaccurate information that is so critical for managing a bank.
Through sheer hard-work innovation and management support the Human Resources unithas created a unique spirit what we like to call DCBian. This has helped to keep theorganisation together as one team almost like a big family each contributing to thegrowth and progress of the Bank. Strong teamwork passion for excellence integrity and anability to drive performance has helped the Bank transform itself. There has been a lot ofstability at the middle and senior levels. I have never underestimated "culture"in an organisation. It is the glue that keeps an organisation together workingharmoniously and therefore effectively. An organisation cannot aspire to be customercentric until it has mastered the art of culture building developed a measure of prideand ownership by employees who are ever ready to go the extra mile.
DCB Bank FY 2015 performance is reported in detail in the later pages. We began thetransformation process around ten years ago. Since 2009 the Bank has grown steadily andconsistently quarter by quarter. We have reached a Balance
Sheet size of Rs. 16132 crores. Our Advances have crossed
Rs. 10000 crores mark in FY 2015. The focus of DCB Bank has largely been on RetailMSME and SME for both Deposits and Advances. The Bank has created a diversified portfolioin order to ensure sustainable predictable and quality performance. NPAs.This isreflected
Given the current economic conditions the Bank has been cautious and careful inincreasing the portfolio size in MSME SME and mid/large Corporates. Even though I tend tobe overly optimistic by my nature I have been a realist with regard Indian economy. Thereare many internal and external challenges which are affecting the pace of economic growth.Wherever possible in the last few years the Bank has tried to de-risk large exposures inorder to maintain quality of the overall portfolio. I am confident that the Indian economywill turn around soon which will present us with more opportunities in MSME SME andmid/large Corporates.
DCB Bank has adopted a calibrated approach to branch network expansion. Three years agoour network was hovering around 80 odd branches. DCB Bank now has 154 branches and ispresent in 94 locations. This is steadily increasing. Our philosophy as always has beento ensure that we serve the neighbourhood we are in and become the chosen bank forcustomers in that location. I am happy to report despite the presence of many banks wehave been able to grow our business. Our presence is taken seriously by competition. Wehave also created a successful model of branch expansion into unbanked areas which ishelping us to deliver on Priority Sector Lending targets.
Given this progress we decided to adopt "Emergence" as the theme of thisyears annual report. Emergence is a process which is completed after some timeperiod. In many parameters DCB Bank is experiencing an emergence putting it on a path tosteady growth diversification and technological innovation. Scale matters. We are nowapproaching a scale of operations when our investments in our operations can be spread andexperienced by a greater number of customers. We are confident the process will continueand that at each stage DCB Bank will continue to internalise its learnings so that weemerge as a highly respected bank in the Indian banking system in the years to come.
April 14 2015