We are living in a dynamic and unpredictable world. There are complex set of variablesthat are constantly changing making it very difficult to visualize stability or predictthe future with any level of accuracy. At the same time there are new opportunities forgrowth and success. Achieving linear growth may not be easy or possible we arewitnessing jagged movements in some respects and exponential change in others.
Uncertainty and Flux
Almost all firms today are under existential threat. Looking out five years isdifficult at best. The automobile industry civil aviation financial servicescommunications mobility renewable energy robotics are all undergoing transformation.Many industries such as Banking (1600) the gasoline automobile (1870) the Aeroplane(1905) that facilitate our everyday lives find their origins to more than 100 years ago.The 21st century is likely to challenge all of our assumptions about the future ofeveryday life and transform the experience to something very different which has neverbeen known before. This is both scary as well as hopeful. We are marching to a betterworld which we can scarcely imagine today.
The firms that are succeeding spectacularly today are those that are creating this newworld through innovation and vision. Apple Google Tesla SpaceX Amazon Airbnb Uberare some examples who were barely known fifteen years ago or didn't even exist. Theubiquitous firms of yesterday have either disappeared or are a fraction of their sizetoday. The most valuable firms of today emerged as ideas whose time had come usingtechnology to their advantage and redefining the manner in which business was done. Thisprocess is likely to continue.
What does this all mean for DCB Bank? The challenge for the Bank is to grow steadilyfrom year to year defined by our own strategy of retail banking pan India. We do this bydoing what we do well. We are constantly learning and internalising this learning to serveour customers better every year using technologies that are appropriate for us and thatserve our purpose. We find ourselves as a small private sector bank operating side by sidewith giants but finding a place of our own in this vast market in India.
Being small nevertheless does not preclude us from being technologically creative. Ininnovative payment solutions mobile convenience and a modern infrastructure to supportour core banking operations with speed and safety the bank has been on the forefront ofrecent developments. We have built an extremely capable and innovative team for ITsolutions for our banking needs within the Bank. The teams are constantly engaged withFintech companies by conducting structured Hackathons to understand where opportunity forproduct development may exist. Some ideas are then adopted as innovative productdevelopments for the future.
Managing risks for profitable growth
Given the period of flux that I have described managing risk in a constantly changingenvironment is of utmost importance. It constitutes the theme of this annual report. Ourgrowth and success depends firmly on the manner in which we assess the risks of doingbusiness in an uncertain world. Our own perception
of these risks is internalised with regard to the profile of our lending the nature ofour deposits as well as cybersecurity risks we may be subjected to. Given the size of ourbalance sheet we are very mindful of constantly defining our risk appetite and thepossible impact it may have if these risks were to materialise.
We have built a very capable team within the Bank for conducting Data Analytics andapplying these techniques to the possible risks we face within the Bank over a widevariety of areas. This constitutes an intelligent way of observing risks embedded in thedata we possess which would not be otherwise visible and then developing measures tomitigate these risks. Data Analytics has been used to examine a variety of operationalareas within the Bank to great effect and has alerted us to factors constituting riskwhich we would not otherwise have perceived.
DCB Bank has charted a path of steady profitable growth through very difficult times. Iam happy to report that this growth path has remained intact despite shocks to the systemin the past many years.
This year our Balance Sheet has grown 18.4% to Rs. 35791.83 crores and Total OperatingProfit by 23.2% to Rs. 646.60 crores. Profitability (PBT) has grown by 31.2% to touch Rs.506.54 crores. Our Net NPAs continue to be kept in control at 0.65%. Our expanded Branch
Network of 333 branches are performing satisfactorily ensuring our continued growth ofCASA deposits with have now grown by 16.6% to Rs. 6809.90 crores. The Book Value of ourequity share is now Rs. 92.72.
While the Bank has made steady progress and will continue to do so I felt it necessaryto indicate that we are very mindful of the environment that we face as we sail into thefuture. Stormy seas will buffet the ship but we must always point our sails in thedirection of our ultimate destination. Failure to do so will quickly divert our course ina direction that is unknown and treacherous.
In order to do that we need to use all the techniques we can muster that will give us apointer to the risks we face and how we could manage them more effectively. Every yearthese techniques will become more sophisticated and hopefully more useful for management.We are building the intellectual capabilities with which to tackle these challenges.
In the end it is the human resources that drive these processes. DCB Bank is blessedwith an excellent team and I am sure that we can rise to the challenges that face us inthe future.
Mumbai April 18 2019