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DCB Bank Ltd.

BSE: 532772 Sector: Financials
BSE 12:54 | 16 Aug 84.65 0






NSE 12:44 | 16 Aug 84.80






OPEN 85.00
VOLUME 17067
52-Week high 105.10
52-Week low 68.05
P/E 7.50
Mkt Cap.(Rs cr) 2,633
Buy Price 84.75
Buy Qty 455.00
Sell Price 85.00
Sell Qty 297.00
OPEN 85.00
CLOSE 84.65
VOLUME 17067
52-Week high 105.10
52-Week low 68.05
P/E 7.50
Mkt Cap.(Rs cr) 2,633
Buy Price 84.75
Buy Qty 455.00
Sell Price 85.00
Sell Qty 297.00

DCB Bank Ltd. (DCBBANK) - Director Report

Company director report

Your Directors are pleased to present the Twenty Sixth Annual Report of DCB Bank Ltd(hereinafter referred to as the Bank/Your Bank/DCB Bank) together with the auditedaccounts for the year ended March 31 2021 (FY 2021).

In FY 2021 the Bank has posted an Operating Profit of ' 898.48 crore (FY 2020'753.06crore) and a Net Profit of ' 335.79 crore (FY 2020'337.94 crore).

Total Assets have increased by ' 1096.99 crore and reached ' 39602.13 crore as onMarch 31 2021 (' 38505.14 crore as on March 31 2020).

Customer Deposits have increased by ' 816.47 crore and Advances have increased by '613.95 crore. Your Bank has been contributing significantly to Priority Sector Lending(PSL) and has achieved the overall PSL target as required by the Reserve Bank of India(RBI).

The Net Interest Margin (NIM) was 3.59% in FY 2021 as compared to 3.67% in FY 2020 andthe Current and Savings Accounts (CASA) ratio stood at 22.8% as on March 31 2021.

Cost to Income Ratio has decreased to 48.5% in FY 2021 from 54.5% in FY 2020. TotalBranch network stood at 352 as on March 31 2021 (336 as on March 31 2020) and ATMnetwork was 410 as on March 31 2021 (504 as on March 31 2020).

Provisions Other Than Tax have increased to ' 445.68 crore in FY 2021 from ' 261.14crore in FY 2020. The Bank is adopting a conservative approach towards potential stress onaccount of Covid-19. The Bank also made provision for existing and fresh Non PerformingAssets (NPA) slippages and provision against Standard Assets.

Gross NPAs have increased to ' 1083.44 crore as on March 31 2021 from ' 631.51 croreas on March 31 2020. Consequently Gross NPA Ratio as on March 31 2021 was 4.09% ascompared to 2.46% as on March 31 2020. Net NPAs have increased to ' 594.15 crore as onMarch 31 2021 as against ' 293.51 crore as on March 31 2020. Consequently Net NPA Ratioas on March 31 2021 was 2.29% as compared to 1.16% as on March 31 2020. The overall NPAProvision Coverage Ratio as on March 31 2021 was 62.35 % (70.81 % as on March 31 2020).

Return on Assets (RoA) Ratio in FY 2021 was 0.87% as compared to 0. 90% in FY 2020.

Corresponding Return on Equity (RoE) Ratio in FY 2021 was 9.99% as compared to 11.19%in FY 2020.

Capital Adequacy Ratio (CAR) under Basel III as on March 31 2021 stood at 19.67%(17.75% as on March 31 2020).


(' in crore)

Balance Sheet As at March 31 2021 As at March 31 2020 Increase / (Decrease)
Customer Deposits 27103.62 26287.15 816.47
Inter Bank Deposits 2600.24 4082.78 (1482.54)
Total Deposits 29703.86 30369.93 (666.07)
[Including Total CASA*] [6786.51] [6519.22] 26729
Advances 25959.24 25345.29 613.95
Gross - NPA 1083.44 631.51 451.93
Net - NPA 594.15 293.51 300.64
Total Assets 39602.13 38505.14 1096.99
Profit & Loss For the year ended March 31 2021 For the year ended March 31 2020 Increase / (Decrease)
Net Interest Income 1286.61 1264.91 21.70
Non Interest Income 458.50 391.10 67.40
Total Operating Income 1745.11 1656.01 89.10
Operating Cost 846.63 902.95 (56.32)
Operating Profit 898.48 753.06 145.42
Provisions Other than Tax 445.68 261.14 184.54
Net Profit Before Tax 452.80 491.92 (39.12)
Tax 117.01 153.98 (36.97)
Net Profit After Tax 335.79 337.94 (21.50)

* Current and Savings Accounts (CASA)


Considering the situation developing around Covid-19 in the country and relateduncertainty that it creates the Board of Directors of the Bank consider it prudent not topropose any dividend for FY 2021.


The Bank's vision is to be the most innovative and responsive neighbourhood bank inIndia serving entrepreneurs individuals and businesses. In line with our vision we beganimplementing a new strategy in FY 2010 which has been very successful and now completed11 years.


Keeping in view its inherent strengths branch network and expertise the Bank's targetmarket is mainly small business owners / self-employed / small business segment (tradersshopkeepers business owners MSMEs and SMEs). The Bank has chosen to have limitedpresence in the salaried segment. The MSME / SME sector is a vibrant and dynamic sector ofthe Indian economy and plays a very important role in the growth of the Indian economy.This segment is usually resilient and displays entrepreneurial spirit. Small enterprisescreate millions of jobs and maintain social stability. The MSME sector plays a pivotalrole in the economic and social development of the country.

Some useful information on the MSME sector is given below:

• Number of Working Enterprises: 64 million Employment: 111 million individuals

• Urban: 49% Rural: 51%

• Manufacturing: 31% Trade 36% Other Service: 33%

• Sole Proprietor: 96%

(Source: Annual Report FY2020-21 Government of India Ministry of Micro Small andMedium Enterprise)


Your Bank provides banking services to a varied base of business owners self-employed/ small businesses for example - Commodity Trader Gold Trader Vegetable TraderCommission Agent Retailer Restaurant Owner Caterer Baker Vending Machine SupplierConsultant Doctor Contractor Interior Decorator Software Designer Salon BeautyParlour Printer Electrical Engineer Saw Mill Flour Mill Rice Mill Grocery StoreBrick Maker Builder Fabricator Artist Writer Auto Repair Ship Repair PharmacyComputer Specialist Furniture Maker Uniform

Maker Garment Shop Fashion Tailor Hardware Shop Agri Processor Pesticide DealerAuto Dealer Scrap Dealer Stationery Supplier FMCG or Consumer Goods Dealer Tool MakerAgri Input Dealer Tractor Dealer Plastic Manufacturer Mattress Manufacturer WaterSupplier Computer Training Classes Internet Cafe Coaching Classes Tour Operator HotelOwner Transporter Ticketing Agent C&F Agent amongst others. The list of SelfEmployed occupation is endless. The target market is essentially Micro Small and MediumEnterprises both in Manufacturing and Services. (Please refer to MSMED Act 2006).Majority of lending to MSME sector qualifies for Priority Sector Lending. A major share ofdeposits and loans of the Bank are from the self-employed segment.

Economic activity was significantly affected due to unavoidable but necessary stepstaken by the Government of India to limit the spread of Covid-19 infections. A nationwidelockdown was announced which unfortunately but expectedly resulted in contraction of theeconomy. Lockdown had much greater impact on MSMEs SMEs shop keepers and traders.Government of India and RBI announced a number of progressive measures to help businessesand individuals to cope with the financial stress caused by the disruptions. Afterlockdown was gradually eased in an orderly manner demand started picking up and thesituation was returning to normalcy.

Unfortunately from the beginning of April 2021 India experienced the second wave ofCovid-19 causing infections to spike rapidly which has put enormous pressure on themedical system of the country. Yet again various State Governments were forced to announcecurfews and lockdowns to slow down the infection rate and save lives. These necessarymeasures have impacted the fragile economic recovery. It seems like much of the year 2022will be consumed in battling the pandemic. It is sincerely hoped that the vaccination ofthe population will pick up speed and slow down the spread of Covid-19. Banks are expectedto make full use of the special measures created by the RBI such as moratoriumrestructure etc. to assist customers to deal with the business/income disruptions.

In the coming months the NPAs in the banking system are likely to increase further.DCB Bank is predominantly focused on MSMEs/SMEs which is most impacted by the lockdownbusiness disruptions. Therefore the Bank may witness an increase in NPAs and restructuredloans. Since the Bank has strong operating profits and capital position the Bank isconfident of sailing through these challenging times..


During the current year CRISIL Limited reaffirmed the Bank's rating for Tier II Bonds(under Basel III) to CRISIL AA-/Stable and reaffirmed its rating on the Bank'sCertificates of Deposit Programme and Short-term Fixed Deposit Programme at CRISIL A1+.The Bank continues to enjoy ICRA A+ (hyb)/ (stable) rating for Basel III Compliant Tier IIBonds Programme and ICRA A1+ rating for Short Term Fixed Deposits Programme.


Your Bank continued to be recognized for its progress and initiatives in variousfunctions.

Corporate Social Responsibility (CSR)

Gold Award in the Asian Customer Engagement Forum (ACEF) in the Best Corporate -Non-Profit Partnership category. The Bank was recognised for its collaboration with S MSehgal Foundation for a project associated with water conservation groundwaterrestoration and sustainable livelihood.

Human Resources

DCB Bank continues to be Great Place to Work-Certified™ for building a High-Trustand High-Performance Culture™ for the year.

Information Technology

During FY 2021 your Bank has participated in various event and also been recognizedand awarded as below:

1. DCB Bank Wins at BFSI Digital Innovation Award 2020

Runners-up in the Ecosystem Innovation Category of Infosys's Client Innovation Award2020 recognized for DCB Bank Innovation Carnival

2. DCB Bank @ Finnoviti Awards 2021

ATMChain - DCB Bank's 1st Blockchain based project has been awarded at the 9th editionof Finnoviti Awards 2021


The number of branches as on March 31 2021 stood at 352 [197 Retail branches and 155branches in Agri and Inclusive Banking (AIB)]. In line with our strategy approximately 19percent of the branches are in rural areas and 26 percent in semi-urban areas. The newbranches have a common look and feel and they are designed to provide a unique positiveand seamless banking experience to customers. The Bank had 410 ATMs as on March 31 2021.


Retail Banking offers unique products for meeting financial needs of individuals andbusinesses. The Bank follows a multi-product approach which results in "all productsbeing offered in all branches" subject to customer demand in the branch catchmentarea. To remain competitive the Bank is particular about the quality and timeliness ofservice delivery. The Bank has a wide range of products that caters to the various needsof the customers.

Term Deposits

DCB Bank is usually amongst the top 5 banks in India in terms of offering attractiveTerm Deposit interest rates especially for longer tenor retail deposits. DCB Suraksha is aunique deposit that not only offers attractive interest rate but also provides a "nomedical required life insurance cover" at "zero cost" to customers (subjectto terms and conditions). During the year the Bank launched DCB Health Plus Fixed Depositproduct which has unique health insurance benefits at "zero cost" to customers(subject to terms and conditions). During FY 2021 the Bank has substantially changed theliquidity profile and mix of its deposits. The continuous focus was on obtaining granulardeposits. Consequently the top 20 deposits ratio which was at 9.27% at the start of theyear further declined to 6.98% at the end of FY 2021.

Mortgage and Micro Mortgage Loans

Mortgage is the main loan product for the Bank and contributes more than 40% of theBank's advances portfolio. Under mortgage business the Bank offers both Home Loans andBusiness Loans to self-employed and salaried segments. The main purpose of these loans ishome purchase home construction home improvement home repairs business expansion andpersonal expenses such as education or marriage.

Micro or small ticket mortgages are particularly sought after in Tier 2 to Tier 6locations. Inspite of substantial progress in digital infrastructure prospects in thesemi-urban areas still derive part of their sales in cash especially in small businesssegment. At times this creates challenges in estimation of income and repayment capacity.The Bank has demonstrated its ability to assess household income for such prospectsthrough structured and detailed personal discussions. Apart from creating good qualityportfolio the Bank has been able to achieve financial inclusion through micro and smallticket loans. Most of these micro loans qualify under the Priority Sector Loan (PSL) normsof the RBI. The Bank has availed refinance facilities offered by the National

Housing Bank (NHB) to support growth of home loans. The Bank has also made available tocustomers subsidy under Pradhan Mantri Awas Yojana (PMAY) through NHB. In FY 2021Covid-19 has thrown up new challenges for our customers and their businesses. As aresponse the Bank has successfully implemented various regulatory schemes likeMoratorium Guaranteed Emergency Credit Line etc. to provide relief under the resolutionframework for Covid-19 related stress to eligible customers.

Post initial lockdown in FY 2021 the mortgage business came back strongly after makingsuitable adjustments in target market and product offering. In a calibrated approach theBank maintained its focus in small ticket loans. By the end of FY 2021 new loan volumesalmost reached pre-March 2020 levels. The contribution of home loans increased in the newloan originations.

Construction Finance (CF)

The construction sector is an important contributor to the growth of our economy.Affordable housing in both rural and urban areas is one of the key thrust area ofGovernment of India. The implementation of Real Estate Regulation & Development Act(RERA) 2016 in most states has brought in a lot of transparency into this sector thuscreating conditions more favorable for banks and home buyers. With respect to lending tothe real estate segment the Bank's approach is to focus attention on reputed builderswith a strong track record who are primarily concentrating on affordable housing segment.The Bank's approach is to limit exposure per customer and project. The Bank hasestablished processes to monitor sales collections and utilization of funds towardsproject completion.

The construction sector has faced the brunt of Covid-19 disruptions. Both constructionand sales activities have been negatively impacted. Once the lockdown was lifted from themiddle of FY 2021 the real estate sector started picking up momentum. While real estatesector may face some stress the Bank expects the affordable housing segment to performwell once the Covid-19 situation improves.

Commercial Vehicle (CV) Loans

Commercial Vehicle Loans (CV) is an important contributor to the Bank's PSL. Almost 95%of the CV portfolio qualifies as PSL. The Bank provides CV loans across 110 locations. TheCV industry has been facing strong headwinds even prior to Covid-19. CV industry isperhaps one of the worst impacted by Covid-19. In

FY 2021 during the pandemic the Bank's CV team reached out to its customers throughvisits / calling to provide customer education on moratorium. The Bank encouragedcustomers to repay loans if cash flows were available instead of choosing moratorium. Theidea was to help customers reduce their interest burden. The Bank also offered MSMErestructure and GECL schemes to eligible customers. CV portfolio is expected to facestress however once the economic situation improves the portfolio is expected to recoverquickly.

Loan against Gold

Loan against Gold is offered in most of the branches of the Bank. The Bank has trainedin house valuers which has resulted in improvement in cycle times and service delivery.The Bank has continuously upgraded "Gradaitm" a special front end software forserving new and existing gold loan customers. In FY 2021 the Bank made significantprogress in growing the Loan against Gold portfolio.

Insurance and Mutual Funds Distribution

The Bank has corporate agency tie-ups for distribution of life insurance healthinsurance and general insurance. The Bank also has referral tie ups for mutual funddistribution. This enables the Bank to deepen customer relationships in addition toincreasing fee income.

Traditional Community Banking

In FY 2010 with a vision of strengthening neighbourhood banking the Bank set up aseparate vertical to focus on Traditional Community Banking. The aim was to address thespecific needs of the vintage neighbourhood community customers and to providepersonalized solutions wherever possible. This perhaps is the purest form of neighbourhoodbanking and is directed towards addressing small credit needs such as education personalbusiness and working capital.

Non-Resident Indian (NRI) business

The Bank has NRI customers from 135 countries which contribute to 10.43% of the totalcustomer deposits.


Collections team operates out of 245 locations with a hub and spoke model and hasdeveloped robust capabilities to collect overdue payments and ensure portfolio qualityacross products. The use of data analytics to improve

predictability has been important in improving the productivity of the unit. Seniorofficers in the collections unit are experienced to understand the issues faced bycustomers and they strive to find acceptable ways to rehabilitate the customers in case ofstress.

During the Covid-19 times team was in regular touch with customers trying to understanddifficulties faced by them in order to provide relief and rehabilitation within theregulatory framework. A lot of effort was undertaken to educate customers (includingvideos) on moratorium restructure etc. A special team was formed within the unit toassist customers that may need more assistance. Continuous efforts were made to increasedigital payments in order to improve customer experience and reduce operational costs.


One of the key strategies of the Bank is to enter alliances with entities whoseproducts and services enable the Bank to improve customer acquisition and retention. Apartfrom new and enhanced products alliances help in speed to market.


Name of the Partner Type of arrangement
Aditya Birla Health Insurance Company Ltd Corporate Agency insurance sales for
Aditya Birla Sun Life Insurance Company Ltd Corporate Agency insurance sales for
HDFC Standard Life Insurance Company Ltd Corporate Agency insurance sales for
ICICI Lombard General Insurance Company Ltd Corporate Agency insurance sales for
Royal Sundaram General Insurance Company Ltd Corporate Agency insurance sales for

The various strategic alliances and business association of your Bank is given below: -

Remittance Solutions

Name of the Partner Type of arrangement
Avenues Payments India (P) Ltd Remittance Platform Solution

Service Partners

Name of the Partner Type of arrangement
Atos Worldline India (P) Ltd Merchant Acquiring
Skilworth Technologies Pvt Ltd. (Bijlipay) Merchant Acquiring
CMS Info System Limited ATM deployment and Cash management
Euronet Services India Limited ATM and Switch Management
M2P Solutions Pvt Ltd. Program Partner for Card programs

Business Alliances

Name of the Partner Type of arrangement
Aditya Birla Finance Ltd. Lending Business

Fintech Alliances

Name of the Partner Type of arrangement
Finnew Solutions Private Limited (NiYo) Global NiyO Card Management
Xomic Infotech Private Limited Government E Marketplace Payment Management System
Camden Town Technologies Limited (Zestmoney) Lending Business
Finsall Resources Private Limited Lending Business
Greenizon Agritech Consultancy Private Limited Lending Business
Indiumplus Financial Services Private Limited Lending Business

Trade Receivables Discounting System (TReDS) Alliances

Name of the Partner Type of arrangement
Mynd Solution Private Lending on TReDS
Limited (M1xchange) Platform
Receivables Exchange of Lending on TReDS
India Ltd (RXIL) Platform
A. TReDS Limited Lending on TReDS
(Invoicemart) Platform


The Bank's intention is to have a limited exposure in Corporate Banking. This businessoperates across India with regional offices in Ahmedabad Bengaluru Chennai DelhiHyderabad Kolkata and Mumbai. The business objective is to provide a complete range ofcommercial banking solutions including Foreign Exchange Trade Finance and CashManagement. The Bank has a robust underwriting and credit system/process to address theinherent risks in Corporate Banking. The emphasis is on building a secured loans portfolioand creating long term relationships with high quality large and mid-corporates. The Bankcontinued to focus attention on short term lending which helped to deploy short termliquidity. The Bank increased the intensity of portfolio reviews and monitoring.

Your Bank understands that the Relationship Managers (RMs) must have in-depth knowledgeof various industries and corporates. To meet this need the Bank has introduced andreinforced RM Knowledge Improvement Programs wherein information on various industriescorporates credit ratings etc are shared with the RMs on a regular basis. Your Bankcontinues to share its learnings to the teams and hold RM meetings wherein the topmanagement of the Bank share their perspectives and learning.


AIB is a separate business unit with the main task of achieving financial inclusionmeet Bank PSL targets especially agriculturul lending target and expand AIB business intorural and semi urban areas. At the end of March 2021 AIB had 155 branches in 12 states.There are many opportunities to offer simple innovative products backed by superiortechnology in the rural and semi urban areas of India. Many of the new branches arepresent in Tier 2 to Tier 6 locations. There is a constant endeavor to cater tounderbanked and unbanked population through a wide range of products for example zerobalance savings account small recurring deposit account small loans to match the incomeand cash flow cycle.

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

In FY 2021 your Bank actively participated in PMJDY The Bank had 32789 PMJDY accountsas on March 31 2021. The Bank has enabled Rupay Debit Cards for PMJDY account holders.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) Atal Pension Yojana (APY)

The Bank successfully reached out to unbanked and economically weaker populationthrough PMSBY PMJJBY

and APY programs that are designed to bring social security. Your Bank had 6279customers under PMSBY; 3199 customers under PMJJBY and 4569 customers in APY as on March31 2021.


BSBDA has replaced "No frills account". This is a wonderful product forachieving financial inclusion especially for those who have limited transaction needsespecially in the low income group. The Bank had 46259 BSBDA accounts as on March 312021.

Kisan Mitra

"Kisan Mitra" as the name suggests is a liability product which fulfils therequirement and enhances the savings habit in rural areas. It is a product speciallydesigned for farmers. It is a modified Savings Account with "zero" accountopening amount and no Average Quarterly Balance maintenance charges.

Retail Agriculture Loan and Kisan Credit Card

To meet the credit needs of the farmers the Bank has several retail agri productsnamely Kisan Credit Card which provide for short term funding requirements such aspurchasing seeds fertilizers pesticides manure irrigation long term loan for animalhusbandry and loans for investment purpose like land improvement irrigation and hi-techagriculture.

Tractor Loans

Tractor Loans is an integral part of the total agricultural equipment sector and is anindirect indicator of growth in the agricultural sector. The Bank has slowly built itsbusiness across Tier 2 to Tier 6 branches. Providing tractor loans helps the Bank topartly meet PSL targets for agriculture and small and marginal farmers. In FY 2021 theBank has started used tractor finance which would benefit small and marginal farmers whocannot afford new tractors. The Bank has introduced "Tab Banking" where thesales team can provide doorstep loan processing to customers and also quickly provide loanrelated information.

Microfinance Institutions (MFIs) and Business Correspondents (BCs)

The Bank lends directly to MFIs who in turn lend to end borrowers. Over time the Bankhas created a strong network of MFI relationships across India. The Bank is also providingunsecured loans through BCs in few states. Loans are given to members of Self Help Groups(SHGs) and Joint Liability Groups (JLGs) for activities thereby enabling them to availsmall loans from the banking sector instead of high cost borrowing from money lenders.These loans are primarily provided to small farmers and weaker sections mainly in ruralareas. To support volume growth the Bank has an efficient software system for managing BCLoans. This software helps maintain adequate information about the borrowers under SHGs& JLGs. It provides a common platform for both Bank and BC for smooth processing ofloans and has added immense value by reducing the loan disbursal cycle time. Bank has alsolaunched a software application for automation of field visits and inspection of BCbranches. This application enables effective monitoring of field level activity.


Phone Banking

In FY 2021 the Bank's Customer Care Associates attended to approximately 100000 callsper month. Despite the pandemic disruptions the Call Center maintained 100% uptime. Toensure safety of staff and to also comply with regulatory guidelines the Bank's CustomerCare had taken a few key initiatives including revised timings for customer servicing from8AM to 8PM (however for critical call types 24x7 service continues). The Bank alsoupgraded its technology to enable Work From Home (WFH) capability. To do load balancing ofcalls the Bank enabled technology capability of redirecting Call Center calls to lowtraffic branches where Teller or other branch staff can attend to the call. This is uniqueway of load balancing across the foot print.

Bank has also upgraded its technology to SIP based from traditional PRI based thusimproving the clarity of voice improving the connect time and enhancing the uptime of theline. Considering the pan India presence the Bank has ensured that its customer careassociates can interact with the customers in 8 languages (English Hindi GujaratiKannada Marathi Odiya Tamil and Telugu). The Customer Care unit conducts programs suchas 'Voice of Customer' for effective complaint resolution and process improvements. One ofthe key measures initiated is customer retention calling team which encourages customersto restart using the Bank's services and do a deep dive on issues that may have been facedby customers. It is a window provided to the customers to provide feedback which are thenrelayed to the various business and functions corrective action.


The number of ATMs as on March 31 2021 was at 410. The Bank ensured that more than 90%of ATMs were operational all the time despite the various lockdowns/

disruptions. Significant security features were added during the year in compliance toregulatory guidelines. The Bank reduced several unviable ATMs and redeployed a few in thenew branch locations.

DCB Mobile and Internet Banking

The Bank's customers actively using the new and improved Mobile Banking App. The usershave given a very encouraging feedback on Play Store. The current rating for the mobileapp is 4.6 which appears to be higher than the Bank's peer group. More than 100000customers are now enjoying the ease of DCB Mobile Banking app. The new version hasenhanced features such as Bill Payment and Term Deposit bookings. The transaction limitper day has been increased to ' 500000.

DCB Internet Banking facility is used by more than 100000 retail and corporate users.Internet Banking platform is rich with plethora of digitally managed services.Furthermore the platform now has new features like online 15 G/H form submission andself-enhancement of transaction limits ranging up to ' 2500000 per day. The PersonalInternet Banking platform has vastly reduced customer's need to visit branches for firsttime registration. The Internet Banking password can be reset online. Customers createdaround 28000 Term Deposits using Internet Banking & Mobile Banking during FY 2021.

DCB Unified Payment Interface (UPI)

Lockdown and restrictions have further given boost to UPI channel which has now becomeone of the most popular digital mode for small transactions. One wonders how India wouldhave coped with lockdown if the country did not have the UPI mechanism. More than 150000customers used the UPI channel and transactions have registered 127% growth in FY 2021.The Bank has increased the UPI transaction limit to ' 100000 per day.

DCB Open Banking

The Bank has a wide range of Application Programming Interface (APIs) to integrate theBank systems in a seamless manner with alliance partner. This enables customers andprospects to enjoy enhanced products and additional services.

DCB Remit

DCB Remit allows a resident individual to send money to over 20 countries includingAustralia Canada Euro Zone Singapore UAE UK and USA using their smart phone from thecomfort of their home or office instead of visiting a branch. What is more for using DCBRemit facility the user does not have to be the DCB Bank customer. It is a simplepaperless process which can be completed in a few minutes.

Digitally Enabled Government Services

GeM (Government E-Marketplace) is an online platform that facilitates onlineprocurement of commonly used goods and services required by various government departmentsand PSUs. The Bank has tied up with Government e-Marketplace (GeM) through a Memorandum ofUnderstanding as an associate bank to facilitate transactions between buyers and sellerson the GeM portal. This would enable majority of the Bank's SME/MSME customers toparticipate in the procurement process of various government departments. Further thecustomer information available on the portal will enable the Bank to extend creditfacilities inter alia Invoice Financing and Short Term Loans.


In FY 2021 DCB Bank commenced participation on Trade Receivables Discounting System(TReDS). TReDS improves flow of funds to MSME sector by reducing their receivablesrealization cycles. During the year the Bank funded more than ' 100 crore on theplatform helping more than 500 MSME sellers to unlock value of their receivables. Most ofthis lending also qualifies as PSL. To ensure credit quality the Bank has focused onsuppliers of 25 large corporates having external credit rating of A and above.

DCB Debit Cards

The Bank continuously focusses on increasing Debit Card usage and constantly enhancingits security features. In line with this objective the Bank has an enhanced engagementwith Euronet (ACS online transaction services provider). Debit Card users can completetheir online payments with OTP instead of static password that was used earlier. DebitCard users have security features enabling customers to activate or deactivate their Cardon POS / ATM / online channels customers can also change transaction limit and block orunblock their card. At the end of FY 2021 the Bank had 612000 Debit Cards. The Bank hasan exciting "cashback" program to delight customers who increase their cardusage provided the customers maintain the stipulated average minimum balance. In additionfrom time to time the Bank also offers seasonal promotional benefits such as healthcareinsurance etc.

DCB Niyo Global Cards

DCB Niyo Global Card is a Debit Card issued to DCB Niyo Current Account holders. Thisprogram is uniquely designed such that unlike forex cards frequent top up of the card isnot required since the card is linked to the Current Account. Card holders are offeredsecurity features to switch on or off card usage change transaction limit and block orunblock the card. Also the DCB Niyo Global Card provides exchange rates which arecompetitive making the product a compelling proposition for prospects and customers.

DCB Payless Cards

Your Bank's Payless Card product is specially designed for self-employed customers andsmall businessmen who may not be able get credit card facility from other banks due toinsufficient income proof or lower than required bureau score. Over time Payless Cardenables customers to rebuild their credit/ bureau score.

DCB Bank Prepaid Cards

Your Bank has full suite of prepaid cards platform for large partnerships of the Bankas well as for the businesses who have small ticket transactions traditionally conductedin cash. These cards are offered along with the convenience of mobile app and arefacilitates adoption of digital payments.


Cash Management Services (CMS)

The Bank provides Corporates MSME/ SME and Retail customers sophisticated andcost-effective CMS. This helps customers manage their collection and payment logisticswith ease. The Bank has 14 vendors for CMS cheque collections across India. The Bank hasupgraded the CMS system for both Payments and Collections enhancing its features andbenefits. At the end of FY 2021 the Bank had 6039 active customers using the CMSfacilities.

Business Internet Banking (BIB)

The Bank offers state of the art BIB product especially designed for MSME/ SMEcustomers. The adaptive and responsive feature of the application makes it user friendlyfor customers across devices. At the end of FY 2021 BIB facility had 31363 users.



Treasury actively manages liquidity compliance with important regulatory items such asCRR/ SLR trading in fixed income securities and currencies and investment in InitialPublic Offers (IPOs). Treasury also shares the responsibility of interest rate riskmanagement of the Bank. In FY 2021 the Bank made gains in a cautious manner by utilizingthe trading opportunities in G-Sec presented by declining interest rates. The Bankselectively invested in equity IPOs and booked profits by way of listing gains. The Bankalso invested in units of liquid Mutual Funds to earn interest income on liquiditymismatches.

Money Market

India's Gross Domestic Product (GDP) growth took a severe hit due to the pandemic andis estimated to contract to 8.50% as against a growth of 4.0% during FY 2019-20. The Indexof Industrial Production (IIP) too remained muted indicating slowdown and lack of demand.The Consumer Price Index (CPI) inflation moved up from 6.58% to a high of 7.61% inNovember 2020 before cooling off to 5.03% by March 2021. To support investment and growthRBI took many admirable and proactive steps and maintained ample liquidity in the system.The year FY 2021 has been a roller coaster ride for the markets. The Sensex went down toas low as 25639 points in March 2020 and thereafter it has rallied to cross 50000points.

Foreign Exchange

The Covid-19 pandemic has inflicted huge damage to human lives and livelihood. Everycountry has been pushed to the edge by the unprecedented challenges thrown by Covid-19.The global economy has contracted and the situation is far worse than the years 2008-09financial crisis. The INR touched an all-time low of 76.92 against the US Dollar whenIndia announced stringent lockdown in March 2020. However robust investment and portfolioinflows added to the surplus liquidity arising out of favorable policies of major centralbanks. This aided INR recovery to 72.25. Subsequently rising crude oil prices and USyields resulted in capital outflows causing the INR to US Dollar to close at 73.11. TheUSD index touched a high of 103 in March 2020 however the rollout of vaccines gradualopening of the economies and uptick in business activities reduced the demand for USD andthe USD index stood at 93.20 in March 2021.


Risk is an integral part of the banking business and the Bank's aim is to maintainportfolio quality by making appropriate risk/reward trade-offs. The Bank is exposed tocredit concentration market country exposure liquidity operational fraud andreputation risk. The Board of Directors of the Bank has oversight of risks assumed by theBank and has delegated its power to manage risks to Risk Management Committee (RMC) of theBoard.

Credit Risk

The Credit Risk unit ensures alignment with the objectives of achieving growth whilemaintaining portfolio quality by making appropriate risk / reward trade-offs. The idea isto ensure long-term sustainable performance across business cycles. On-going efforts aremade to improve risk assessment and controls. Credit Risk over time has developedcapabilities to assess the risks associated with various products and business segments.As far as possible efforts are made to standardize the entire process pan India whileconsidering geographic nuances. The Bank has implemented a rating model that considersboth quantitative and qualitative factors and produces a rating that becomes one of thekey inputs to credit decisions. To continuously improve the quality of the portfolio theCredit Risk unit uses SAS analytics and has created several insightful models that helpedin refining the product offering choosing the target segment of customers collectionsand recoveries. Key processes in credit underwriting were examined and duplication wasreduced to improve speed of processing. Periodic portfolio reviews were conducted with thebusiness units that helped improve portfolio quality.

Concentration Risk

Concentration risk is monitored and managed both at the customer level and at theaggregate level. The Bank inter alia continuously monitors portfolio concentrations bysegment ratings borrower group sensitive sectors unsecured exposures industry andgeography. The Bank adopts a conservative approach within the regulatory prudentialexposure norms.

Market Risk

Besides the usual monitoring of Structural Liquidity Interest Rate Sensitive Gaplimits and Absolute Holding limits the Bank also monitors interest rate risks using Valueat Risk limits. Exposures to Foreign Exchange and Capital Markets are monitored withinpre-set exposure limits margin requirements and stop-loss limits.

Country Exposure Risk

The Bank has established specific country exposure limits which is capped at 15% of itsCapital Funds. The limit also depends upon rating of individual countries. The Bankmitigates risks using insurance cover available through the Export Credit and GuaranteeCorporation (ECGC) where appropriate.

Liquidity Risk

As part of the liquidity management and contingency planning the Bank assessespotential trends demands events and uncertainties that could result in adverse liquidityconditions. The Bank's Asset Liability Management (ALM) policy defines the gap limits forthe structural liquidity and the liquidity profile is analysed on both static and dynamicbasis by tracking cash inflow and outflow in the maturity ladder based on the expectedoccurrence of cash flow. The Bank undertakes behavioural analysis of the non-maturityproducts namely CASA Cash Credit and Overdraft accounts on a periodic basis to ascertainthe volatility of balances. The renewal pattern and premature withdrawals of Term Depositsand drawdowns of un-availed credit limits are also captured through behavioural studies.The liquidity profile is estimated on an active basis by considering the growth inDeposits Advances and investment obligations. The concentration of large deposits ismonitored on a periodic basis. Emphasis has been placed on growing Retail Deposits andavoid as far as possible Bulk Deposits. The Bank periodically conducts liquidity stresstesting.

Operational Risk

Operational Risk is the risk of loss resulting from inadequate or failed internalprocesses people or systems or external events. The Bank's operational risk managementframework is defined in the Operational Risk Management Policy approved by the Board ofDirectors. While the policy provides a broad framework Operational Risk ManagementCommittee (ORCO) oversees the operational risk management in the Bank. The policyspecifies the composition roles and responsibilities of the ORCO. The framework comprisesidentification assessment management and mitigation of risks through advanced tools andanalysis.

Process Review

The Bank strives to continuously improve process controls and customer satisfaction.The Bank has a separate cross functional committee - Management Committee for Approval ofProcesses (MCAP). New products and processes are subjected to review by MCAP. TheCommittee is tasked with identifying operational and compliance risks in newproducts/processes and ensuring that steps are taken to mitigate the risks. Also MCAP onan on-going basis reviews existing processes for further improvement. In the FY 2021 108products/ processes were reviewed by MCAP.

Reputational Risk

The Bank pays attention to issues that may create reputational risks. Events that cannegatively affect the Bank's reputation are handled cautiously ensuring utmost complianceand in line with the values of the Bank.


In accordance with the RBI guidelines the Bank has migrated to Basel III capitaladequacy disclosures with effect from Q1 FY 2014. The Bank continues to review and improveon its risk management systems and practices to align them with international bestpractices. The Bank has implemented Standardized Approach for Credit Risk StandardizedDuration Approach for Market Risk and Basic Indicator Approach for Operational Risk.


Empowering customers to do banking frictionless banking is new norm in of banking.Customers are demanding high level of convenience digitization simple user interface andinterconnected seamless journey.

In FY 2021 the Bank has taken many initiatives in technology. It was a very difficultyear as uninterrupted services had to be provided to customers in a situation wherephysical movements were severely restricted.

The following are some of the key initiatives in FY 2021:

• Upgraded Finacle Core Banking Platform from 7.x to 10.x. This was a massiveconversion exercise completed with minimal customer inconvenience.

• Implemented "Positive Pay System" for safety of cheque-basedtransactions.

• Implemented interactive screen-based service delivery at branches

• DCB Health Plus Fixed Deposit product launched with unique health insurancebenefits

• Created ability for frontline to cross sell insurance seamlessly with gold loansin Gradatim.

• Created DCB Bank Blockchain solution - automated process for ATM cashreplenishment.

• Digitized SWIFT basic tracker with Global Payment Innovation (GPI)

• Provided convenience of loan repayments via UPI channel.

• Added several unique/ new features in New Mobile Banking Application thatenhanced customer experience.

• New features added in Internet Banking such as: o Account Statements availableupto 3 months

o Form 15G/H internet login alert via SMS and email to the account holder.

o Self-Registration for Internet Banking Bill payments Personalized Limits and GreenPIN (paperless)

• DCB Bank Branch App launched as a part of Covid-19 Social Distancing initiativefor branches.

• Launched ACL Mobile Bulk SMS Platform for Promotional and Security Awareness SMS

• Automated Lease Management Application - P2P procurement tool to automate andtrack entire rentals payment process.

• Created e-KYC Module (App and Web Portal) - to provide a platform to the bankusers/ employees and business correspondents to perform the e-KYC

• Initiated website based (online sales process) customer journey via Bank'swebsite to facilitate insurance sales with built in compliance checks.


The core objective of BIU is to support all businesses and functions to make decisionsusing data analytics. The Bank has a scalable analytical stack in areas of Big DataMachine Learning and Deep Learning comprising of an Enterprise Data Lake and GPU servers.The analytical platforms used in the Bank include SAS Viya R Python and Spark. This hasassisted businesses and functions in several "Use Cases" in the field of MachineLearning and Artificial Intelligence such as building predictive models like defaultbehaviour scorecards using techniques such as time-series forecasting and optimisationfor cash loading at ATMs text mining and NLP for sentiment analysis Big Datacapabilities for analysing behavioural patterns for campaigns product selection ADFsubmissions etc. amongst other initiatives combining power of Analytics and Technology.


Despite very difficult environment Operations ensured that services were functionalthroughout the lockdown disruptions. Staff safety was given high importance and proactivesteps were taken to create backups for key activities to avoid interruption in service.Centralized Payment Center was created to bring payments processing under a singleumbrella and make it operational 24/7. There was a lot of focus on automation and robustprocesses were created / strengthened using the power of technology. RTGS and NEFT 24/7was implemented and enterprise reconciliation capabilities were enhanced for 24/7operations. The Quality Assurance function within Operations was revamped to make itrobust and proactive. The entire lockdown was handled with minimal operational errors.Operations continued to focus on cost efficiency productivity and controls.


IA function has employees with varied domain background and experience. The IA teamcomprises of professionals experienced bankers specialists and "freshers". IAfunction reports into the Audit Committee of the Board (ACB) which constitutes memberswith strong domain and audit knowledge. ACB oversees the IA function monitors performanceand provides regular guidance for improving control and compliance. In FY 2021 IA workedon converting the challenge of not being able to do physical visits into an opportunity toenhance its working through vastly strengthening analytics and MIS. The Continuous Auditand Monitoring system (CAMS) framework which was initiated a year back had helped incontinuing the internal audits and reviews with minimal interruption. In FY 2021 CAMS wasintegrated with core banking and the tool kit was automated. In FY 2021 IA conducted 260branch audits 47 periodic audits and 10 IT audits. IA has a small team of retired bankerswho provided robust support in identifying and highlighting key process gaps in thevarious businesses / functions. IA team members attended multiple online trainingprogrammes for continuous enhancement of knowledge and audit methods. IA function alsobrought in two new modes of branch audit being spot audit (a one day focussed audit onphysical verifications at the branches on surprise basis) and hybrid model audit (whereexternal audit professional support is used for physical verification). These audits aresupported by internal analytics.


The Fraud Risk Monitoring (FRM) unit has been enhanced through inclusion of additionaldata points into the monitoring tool and reviews. The scope and coverage has also beenexpanded with 24x7 monitoring. The Bank is enabled for early detections of possible fraudtransactions / usage through multiple channels. Through process improvements theVigilance unit has improved reporting investigation and response to queries received fromvarious law enforcement agencies. The Vigilance unit had continued to conduct fraud riskawareness using online training sessions. FRM and Vigilance units have continued toidentify process gaps (if any) in respect of fraud risks and provided recommendations forfraud prevention and detection.


The Bank's Compliance unit is independent of business and operation functions. Thisfunction has created detailed procedures to ensure compliance with applicable regulations.In addition to ensuring timely submission of various returns to regulatory and statutoryauthorities the Compliance unit ensures that the Bank's internal procedures and processesare in adherence with the applicable regulatory and statutory guidelines. The Complianceunit is also responsible for AML / KYC monitoring and for executing the same the Bankrelies on advanced software and analytics. The Bank is covered under the Banking OmbudsmanScheme of the RBI wherein escalated customer complaints received through the Office of theBanking Ombudsman are addressed under a well-defined Customer Grievance Redressalmechanism. To strengthen the internal grievance redressal system and to ensure that thecomplaints of customers are redressed at the level of Bank itself to the extent possiblean Internal Ombudsman has also been appointed in line with RBI guidelines. The Compliancefunction also has a separate unit for Compliance Monitoring and Testing on an ongoingbasis which also carried out compliance risk assessment of each of the units in the Bankto drive focussed attention to address the identified issues.


The Bank believes that employees are the driving force for growth branding program andsuccess. It is employee asset that builds readiness facilitating adaptability and ensuressustained performance.

The year FY 2021 was marked by the outbreak of Covid-19 and the pandemic haddevastating impact on India and the world. It affected everyone (customers employeesbusiness etc.) This unprecedented situation required us to act with empathy innovationand agility. As an essential service we had to ensure continuity of business withoutcompromising the safety and health of employees their families and customers. The HRteam came up with unique ideas across the four pillars of Build Develop Care and Engage.HR responded quickly and adapted to online and digital methods so that the safety normsand social distancing were always adhered to.

The Bank continues to be certified by the "Great Place to Work" Institute forbuilding a High Trust and High-Performance culture for the year.


At the end of FY 2021 the Bank's headcount was 6432. The Bank was able to providecross functional opportunities to employees through "Own Your Future" aninternal job posting initiative which has been very successful. The Bank also introducedGenesis an AI Based cloud application tracking system which facilitates resume parsingAI based job suggestions profile screening and social hiring to name a few contemporarytechniques. The Bank has over 1.6 lakh followers on LinkedIn which is primary source forrecruitment and branding.

The Bank continued its flagship B-school competition that has been recognized as one ofthe best practices in the industry. The Bank scaled up its "The Top Recruit"program and campus engagement initiatives across various regions covering around 8000participants from 200 B- Schools in cities like Bengaluru Delhi Kolkata and towns inMaharashtra.


The Bank continued to provide training to all employees laying emphasis on keycompliance modules like POSH Risk Management and Capacity Development. Given theunprecedented situation of Covid-19 trainings were conducted online via our e-learningplatform "LUMOS".

The Bank also launched the Regional Ethics Workshops to address Code of Conductre-iterate importance of ethical practices and the POSH policy of the Bank.

"Anybody Can Train - ABCT" was initiated in FY 2021 to encourage and build aculture of self-learning and development. This initiative provided a platform to employeesto share their learnings on topics of their choice. DCB Podcast and SuperWise were videobased initiatives where senior management shared their insights on a range of managementsubjects to a large section of employees.

The Bank continued to enhance employee knowledge on process and compliance relatedareas through "Project Prayas" and "Project First Time Right (FTR)".

In addition to this we initiated a series of byte sized Masterclass on Leadershipsessions to help supervisors navigate in uncertain times. Leaders shared their perspectiveon a wide array of topics right from Ownership Communication and Decision Making. Ablended learning program was organized for our Branch Managers to take up leadership rolesin the Bank.


In March 2020 the Bank created a cross functional task force to deal with the employeerelated matters with respect to Covid-19 pandemic. Covid-19 task force provided timelyhelp to employees / families affected by Covid-19 infection ensured compliance to localand central government guidelines and constantly communicated the need for maintainingCovid-19 protocols. The Bank laid down "Work From Home" guidelines and ensuredseamless continuity of work by working closely with IT Admin and Operations teams.

The Bank also organized virtual event for appreciation of "DCB Heroes"employees who did outstanding work during the lockdown. The Bank introduced a 14-dayspecial Covid-19 leave for employees who tested positive for the infection. The Bankoffered enhanced Mediclaim plan in FY 2021 for employees. The Bank also offered fromfinancial assistance to tide over Covid-19 impacted employees/families. Some employeesalso used the counseling services through the Bank's Employee Assistance Program. Anonline "Health Carnival" event was organized for providing emotional andpsychological support to employees. The Bank's employees also participated in WalkathonsMasterChef Contests and Online activity sessions.

At DCB Bank we remain true to our value of Contribute - Giving back to the society.The Bank's CSR activities range from clean up waste management habitat restoration treeplanting creating awareness amongst people on water conservation and waste management.The Bank had volunteers who attended virtual workshops on "best from the waste"in the lockdown. Towards improving the country's environment the Bank planted over100000 trees during FY 2021.


The Bank has focused on programs for employees with the objective to create sense ofteamwork and camaraderie. The Bank has a signature employee recognition forum called"DCB Spotlight" for felicitating top performers in different regions. "DCBSpotlight" employee recognition event was held virtually across 10 locations.

"Hour HR" (our live radio show) helped employees directly interact with HRand seniors. The topics ranged from doctor's help during the pandemic managing thepsychology of teams promotion process and mediclaim.

An inhouse "Women's Day" special show for women employees was organized wheresenior women leaders spoke about their careers.

Quarterly newsletter "High Decibel" is a communication channel whereemployees contribute articles of personal experience and professional achievements. Thismedium was yet again used regularly to communicate with employees.

Corporate Social Responsibility (CSR)

The Bank's CSR thrust areas are Water Waste Management Renewable Energy andRecycling. Employee volunteering and participation for tree plantation habitatrestoration clean-up of parks lakes and local water bodies is constantly encouraged.More and more DCB Bank employees are participating in CSR activities every year. In FY2021 the Bank offered employees the option to participate in video meetings for kitchengardening workshops. Over 100 employees with their families attended sessions onconverting of kitchen waste to manure for use in kitchen garden.


Delighting customer in every interaction is the core aim of the Bank. On a regularbasis customer complaints and satisfaction levels are monitored by the Managing Director& Chief Executive Officer along with the Senior Management team. The Bank hasconstituted an independent "Service Excellence" team to analyse customercomplaints identify root cause for service issues make process improvements and workwith the various businesses and functions to continuously enhance service levels. The Bankhas an "Integrated Centralised Complaint Management" system and standards toensure that customer queries and complaints are not missed out and are resolved in atimely manner.

The Bank continues to make steady progress on the concept of Power of Three - EmpathySpeed and Quality (ESQ) initiative launched many years ago. The Bank continuously works onthe six pillars of Service Excellence

- Voice of Customer Service Recovery Attrition Calling Process SimplificationService Culture and Measures and Metrics. The Service Excellence team regularly conductsreview of progress on six pillars with key stakeholders weekly calls with frontline staffto obtain feedback surprise visits to various units customer meetings focus groups and"mystery shopping" to understand frontline service culture and competence. TheBank has constituted three committees at different levels to monitor customer service

- Branch Level Customer Service Committees (BLCSCs) Standing Committee on CustomerService (SCCS) and Customer Service Committee of the Board (CSCB).


In FY 2021 despite lockdown and restrictions the Bank continuously took numerousmeasures to create brand awareness and improve visibility like methods adopted by FMCG3000 odd store boards (Grocery Pharmacy Kirana Food Joints Stationery etc) with DCBGold Loan branding were installed in the neighbourhood of branches across 15 states. Theseboards created awareness and improved new customer acquisitions. The Bank whereverpossible through posters and other means repeated messages regarding social distancingfrequent cleaning of hands and use of masks. Local regional news channels and cablechannels were sought after by target audience during the national lockdown. DCB Gold Loancampaign was initiated across 23 regional channels covering 12 states. Gold Loan MobileVan activation campaign was done in Odisha covering the neighbourhood and key locationsacross various branches. Animation videos were created in regional languages for customereducation and awareness relating to loan moratorium and use of digital modes forrepayments for various loan products. Unique programs like "Draw to Win""Three Cheers for Chef"' "Picture Perfect" "MusicalHousie" were conducted online to engage with the customers during the lockdown. TheBank also launched DCB Gold Loan Musical AV to for existing and new customers.

The Bank created new communication for DCB Fixed Deposit DCB Suraksha Fixed DepositDCB Recurring Deposit DCB Health Plus Fixed Deposit DCB Zippi Online Fixed Deposit DCBSenior Citizen Fixed Deposit DCB Gold Loan and DCB Remit. Throughout the year the Bankensured above the line presence in local print outdoor and digital campaigns for GoldLoan and Fixed Deposit products. DCB Remit was promoted on social media and digitalchannels which in turn helped customers to remit funds to their near and dear ones safelyfrom the comfort of their homes. DCB Top Recruit Program and Healthify campaign wereconducted successfully on social media.


The Ministry of Corporate Affairs (MCA) Government of India has notified the Companies(Indian Accounting Standards) Rules 2015 on February 16 2015. Further a Press Releasewas issued by the MCA on January 18 2016 outlining the roadmap for implementation ofIndian Accounting Standards (IND AS) converged with International Financial ReportingStandards (IFRS) for banks. As per earlier instructions banks in India were required tocomply with the IND AS for financial statements for accounting periods beginning fromApril 1 2018 onwards with comparatives for the periods ending March 31 2018 orthereafter. Progressing towards IND AS the Bank had prepared pro forma financials as onJune 30 2017 as per extant regulatory guidelines and submitted the same to the RBI. OnApril 05 2018 the RBI had announced deferment of implementation date by one year withIND AS being applicable to banks for accounting periods beginning April 01 2019 onwards.In preparation for the

same the Bank has been submitting quarterly pro-forma financials to the RBI fromquarter ended June 30 2018. On March 22 2019 the RBI has announced deferment of theimplementation of IND AS by banks till further notice; however the Bank continues tosubmit to the RBI pro forma financials on a quarterly basis.


Not applicable being a banking company.


All the transactions with related parties are in the ordinary course of business and onarm's length basis and there are no 'material' contracts or arrangement or transactionswith related parties and thus disclosure in Form no. AOC-2 is not required.


The Bank has a policy on Related Party Transactions and the same has been displayed onthe Bank's website at the following link:



In terms of Regulation 34(2)(f) of the SEBI Listing Obligations and DisclosureRequirements (LODR) Regulations 2015 the Bank's Business Responsibility Report describingthe initiatives taken by the Bank from an environmental social and governance perspectiveforms part of this Report and has been hosted on the website of the Bank at the followingLink:



1. Brief outline on CSR Policy of the Company.

CSR Activities shall mean all the Corporate Social Responsibility activities / programs/ initiatives of the Bank either ongoing or new dealing with the activities mentioned inthrust areas. The activities shall conform to those specified in Schedule VII to the Act(as amended from time to time) and as recommended by the CSR Committee and approved by theBoard.

Thrust areas or activities ascribed to them are defined in the Policy as amended bythe Board from time to time.

Projects/ Programmes to be undertaken:

CSR Thrust Areas for DCB Bank

Thrust areas shall mean and include any one or more of the following CSR activities:

a) Conservation of water / water storage / water usage / protecting water bodies

b) Waste Management

c) Recycling

d) Promote waste-to-energy

e) Promote start-ups

f) Preservation of historical and heritage sites in situ focus on water conservationwaste management recycling and or waste-to-energy.

g) Support Disaster Relief

2. Composition of CSR Committee:

Sl. Name of Director No. Designation / Nature of Directorship Number of meetings of CSR Committee held during the year Number of meetings of CSR Committee attended during the year
1 Ms. Rupa Devi Singh Independent Director 1 1
2 Mr. Nassser Munjee Chairman 1 1
3 Mr. Murali M Natrajan Managing Director & CEO 1 1

3. Provide the web-link where Composition of CSR committee CSR Policy and CSR projectsapproved by the board are disclosed on the website of the company.

4. . Provide the details of Impact assessment of CSR projects carried out in pursuanceof sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules2014 if applicable (attach the report).: NA

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7of the Companies (Corporate Social responsibility Policy) Rules 2014 and amount requiredfor set off for the financial year if any.:

Sl. No. Financial Year Amount available for set-off from preceding financial years (in ') Amount required to be set-off for the financial year if any (in ')
1 0.01 Crore
Total 0.01 Crore

6. Average net profit of the company as per section 135(5). ' 456.91 Crore

7. (a) Two percent of average net profit of the company as per section 135(5) ' 9.14Crore

(b) Surplus arising out of the CSR projects or programmes or activities of the previousfinancial years. NIL

(c) Amount required to be set off for the financial year if any: NIL

(d) Total CSR obligation for the financial year (7a+7b-7c). ' 9.14 Crore

8. (a) CSR amount spent for the financial year: ' 9.15 crore

Total Amount

Amount Unspent (in ')

Spent for the Financial Year. (in ')

Total Amount transferred to Unspent CSR Account as per section 135(6).Date of transfer.

Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5).

Amount. Date of transfer. Name of the Fund Amount. Date of transfer.

(b) Details of CSR amount spent against ongoing projects for the financial year: NIL

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)


Sl. Name No. of the Project. Item from the list of activities in Schedule Local area (Yes/ No). Loca the p tion of roject. Project duration. Amount allocated for the project (in '). Amount spent in the current financial Amount transferred to Unspent CSR Account for the project as per Mode of Implementation - Direct (Yes/No).

Mode of Implementation - Through Implementing Agency

VII to the Act. State District. Year (in '). Section 135(6) (in '). Name CSR Registration

(c) Details of CSR amount spent against other than ongoing projects for the financialyear:


# Name of Project Item from the list of activities in Schedule VII Local Area (Y/N)

Location of the project (State/District)

Amount ' Mode of implemen- tation (Direct) Y/N Mode of implemen- tation(name of Agency) CSR registration Number)
District State
1 Information communication education (ICE) solar street lights Karjat MH Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Karjat Maharashtra 200000 Y ADFACTORS Reg. number NA
2 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities. Y Mumbai Maharashtra 28875 Y AGELYN Reg. number NA
3 Emergency ration Covid-19 disaster management including relief rehabilitation activities. Y Junagadh South Delhi Palghar Delhi NCR Gujarat Maharashtra 21444600 N AKAH INDIA CSR00001277


4 Education - school fee relief for children from underpriviliged families Covid-19 disaster management including relief rehabilitation activities. Y Mumbai South Maharashtra 100000 N ANJUMAN E ISLAM CSR00004035
5 PPE kits- Sassoon Hospitals Covid-19 disaster management including relief rehabilitation activities. Y Pune Maharashtra 100000 N APEX HYGIENE Reg. number NA
6 PPE-Govt Hospital Jodhpur Covid-19 disaster management including relief rehabilitation activities. Y Jodhpur Rajasthan 99800 Y BACHHRAJ Reg. number NA
7 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities. Y Mumbai Maharashtra 22050 Y CARRIER Reg. number NA
8 Emergency relief to people with disabilities Covid-19 disaster management including relief rehabilitation activities. Y Chintamani Bengaluru Tumkuru Karnataka 500000 N CHESHIRE DISABILITIES TRUST CSR00004844
9 Medical Seva to impacted population and frontline workers Covid-19 disaster management including relief rehabilitation activities. Y Mumbai Maharashtra 50000 N CHINMAYA SEVA TRUST Reg. number NA
10 PPE gloves sanitisers masks-Govt Hospital Jodhpur Covid-19 disaster management including relief rehabilitation activities. Y Mumbai Maharashtra 57078 Y CLASSIC Reg. number NA Reg. number NA
11 Integrated watershed development & sustainable livelihood Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Banki (Project Phase II) Odisha 4612627 N CONCERN INDIA FOUNDATION CSR00000898


12 Integrated watershed development & sustainable livelihood Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y






13 Emergency ration Covid-19 disaster management including relief rehabilitation activities. Y


West Bengal




14 PPE kits Covid-19 disaster management including relief rehabilitation activities. Y






15 Tree plantation Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y






16 Sustainability Environment Education Water Health Y

Across India

Across India




Reg. number NA
17 Promote chemical free orgainc home cleaning solutions - facebook twitter online instagram Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y

Across India

Across India




Reg. number NA
18 Waterless urinals-IAF Vadodara Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y






Reg. number NA
19 Waterless urinals- BBSBECC Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water


Fatehgarh Punjab




Reg. number NA

20 Waterless urinals-IAF Rajokri Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water


New Delhi Delhi NCR




Reg. number NA

21 Waterless urinals-IHC Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water


South Delhi Delhi NCR




Reg. number NA

22 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.


Mumbai Maharashtra




Reg. number NA

23 Tree plantation local tree species Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water


Bengaluru Karnataka





24 Mitigate immpact of Covid-19 Covid-19 disaster management including relief rehabilitation activities.


Gurugram North Delhi South Delhi Delhi NCR & Haryana





25 Emergency relief cooked food Covid-19 disaster management including relief rehabilitation activities.


Mumbai Maharashtra




Reg. number NA


26 Rations Cooked Food Covid-19 disaster management including relief rehabilitation activities. Y All India Across India 2000000 N GOONJ CSR00000291
27 Emergency ration Covid-19 disaster management including relief rehabilitation activities. Y Mumbai Maharashtra 500000 N GREEN COMMUNITIES FOUNDATION CSR00004068
28 Miyawaki Plantation- Project III Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Navi Mumbai Pimpri Gautam Buddh Nagar Maharashtra & Uttar Pradesh 14250000 N GREEN YATRA TRUST CSR00000236
29 Miyawaki Plantation- Project II INS HAMLA Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Mumbai Maharashtra 6000000 N GREEN YATRA TRUST CSR00000236
30 Miyawaki Plantation- Project I INS HAMLA Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Mumbai Maharashtra 1080000 N GREEN YATRA TRUST CSR00000236
31 Plantation Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y Mumbai Maharashtra 44559 Y HOLY AUXULLIUM SCHOOL Reg. number NA


32 Tree plantation indigenous tree species Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y







33 Tree plantation local tree species Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y







34 Karnala Bird Sanctuary app Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y







35 Emergency relief cooked food Covid-19 disaster management including relief rehabilitation activities. Y


Delhi NCR




Reg. number NA

36 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities. Y






Reg. number NA

37 Sustainable livelihood & water harvesting Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y


Madhya Pradesh





38 Emergency relief Covid-19 disaster management including relief rehabilitation activities. Y

Across India

Across India




Reg. number NA

39 Emergency relief Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA
40 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA
41 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA
42 Tree plantation local tree species Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water







Reg. number NA
43 Mangroves Plantation Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water



Tamil Nadu




Reg. number NA
44 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA
45 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







46 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA


47 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities. Y






Reg. number NA
48 Emergency relief cooked food Covid-19 disaster management including relief rehabilitation activities. Y






49 Tree plantation Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y

Across India

Across India




50 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities. Y






Reg. number NA
51 Groundwater development Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y






52 Water harvesting Covid-19 disaster management including relief rehabilitation activities. Y

Morena & Gwalior

Madhya Pradesh




53 Rainwater catchment Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water Y






54 PPE gloves sanitisers masks - Covid-19 treatment at PAKH Covid-19 disaster management including relief rehabilitation activities.







Reg. number NA

55 DCB SOCIAL CSR Volunteers Ensuring environmental sustainability ecological balance conservation of natural resources and maintaining quality of soil air and water


Across India

Across India




Reg. number NA

56 Emergency ration Covid-19 disaster management including relief rehabilitation activities.


Dehra Dun Haridwar






Grand Total


(d) Amount spent in Administrative Overheads: NIL

(e) Amount spent on Impact Assessment if applicable: NA

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ' 9.15 Crore

(g) Excess amount for set off if any:

Sl. Particular No. Amount (in ')
(i) Two percent of average net profit of the company as per section 135(5) 456.91 Crore
(ii) Total amount spent for the Financial Year 9.15 Crore
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 0.01 Crore
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years if any NIL
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.01 Crore

9.(a) Details of Unspent CSR amount for the preceding three financial years: NIL

Sl. No. Preceding Financial Year. Amount transferred to Unspent Amount spent in the reporting

Amount transferred to any fund specified under Schedule VII as per section 135(6) if any.

Amount remaining to be spent in
CSR Account under section 135 (6) (in ') Financial Year (in '). Name of the Fund Amount (in '). Date of transfer. succeeding financial years. (in ')
1. 2. 3. Total

(b) Details of CSR amount spent in the financial year for ongoing projects of thepreceding financial year(s): NIL

(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. No. Project ID. Name of the Project. Financial Year in which the project was commenced. Project duration. Total amount allocated for the project (in '). Amount spent on the project in the reporting Financial Year (in '). Cumulative amount spent at the end of reporting Financial Year. (in ') Status of the project - Completed /Ongoing.

10. In case of creation or acquisition of capital asset furnish the details relatingto the asset so created or acquired through CSR spent in the financial year: NIL

(asset-wise details).

(a) Date of creation or acquisition of the capital asset(s).

(b) Amount of CSR spent for creation or acquisition of capital asset.

(c) Details of the entity or public authority or beneficiary under whose name suchcapital asset is registered their address etc.

(d) Provide details of the capital asset(s) created or acquired (including completeaddress and location of the capital asset).

11. Specify the reason(s) if the company has failed to spend two per cent of theaverage net profit as per section 135(5). NOT APPLICABLE

Sd/- Sd/- Sd/-
(Chief Executive Officer or (Chairman CSR Committee) [Person specified under clause (d)
Managing Director or Director) of sub-section (1) of section 380 of the Act] (Wherever applicable)


• The Board shall have minimum 3 and maximum 15 Directors unless otherwiseapproved. No person of age less than 21 years shall be appointed as a Director on theBoard.

• The Bank shall have such person on the Board who complies with the requirementsof the Companies Act 2013 the Banking Regulation (BR) Act 1949 Provisions of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 (the ListingRegulations) the 'Fit & Proper' criteria prescribed by the Reserve Bank of India(RBI) Memorandum of Association and Articles of Association of the Bank and all otherstatutory provisions and guidelines as may be applicable from time to time.

• Composition of the Board shall be in compliance with the requirements ofRegulation 17 (1) of the Listing Regulations.

• Majority of the Directors as required under BR Act shall have specializedknowledge/experience in the areas like Agriculture Banking SSI Legal Risk ManagementAccountancy Finance etc.

• All Directors shall abide by the Code of Conduct.

• Directors shall not attract any disqualification and shall be persons of soundintegrity and honesty apart from knowledge experience etc. in their respective fields.


• MD & CEO Company Secretary and Chief Financial Officer shall be the KeyManagerial Personnel (KMPs) of the Bank.

• Except for the Chairman and the MD & CEO no other Directors are paidremuneration but are paid only sitting fees. The Chairman and the MD & CEO are paidremuneration as approved by the RBI and other applicable authorities but are not paidsitting fees.

• Independent Directors are not entitled for Employee Stock Options.

• Remuneration of all employees including Senior Management and KMPs are decidedas per the Compensation Policy of the Bank.


The Bank had 6432 employees as on March 31 2021. 8 employees employed throughout theyear were in receipt of aggregate remuneration of not less than '1.02 crore per annum andno employee was employed for a part of the year. The details of top 8 employees in termsof remuneration drawn pursuant to provisions of Section 197(12) of the Companies Act 2013read with Rule 5 (2) and 5(3) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 are appended separately (Annexure-I) and form part of this Report.

The Report and Accounts are being sent to the Shareholders excluding these particularsand any Shareholder interested in obtaining the said details may write to the CompanySecretary at the Registered Office of the Bank


The information pertaining to the Employee Stock Options is given in Annexure-II tothis Report.


a) The ratio of the remuneration of each Director to the median employee's remunerationfor the financial year ended March 31 2021 and such other details as prescribed are asgiven below:

Name Ratio
Mr. Nasser Munjee (Chairman) 6:1
Mr. Murali M Natrajan (Managing Director & CEO) 142:1

b) The percentage increase in remuneration of each Director Chief Financial OfficerChief Executive Officer Company Secretary or Manager if any in the financial year:

Name Ratio
Mr. Nasser Munjee (Chairman): 0%
Mr. Murali M Natrajan (Managing Director & CEO): 0%
Mr. Bharat Laxmidas Sampat (Chief Financial Officer): 0%
Ms. Rubi Chaturvedi (Company Secretary): 22%

c) The percentage increase in the median remuneration

of employees in the financial year: 0%

d) The number of permanent employees on the rolls of

Bank: 6383

e) Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year ended March 31 2021 and its comparisonwith the percentile increase in the managerial remuneration and justification thereof andany exceptional circumstances for increase in the managerial remuneration: Averageincrease in remuneration is 1.15 % for employees other than Managerial Personnel &0.43 % for Managerial Personnel (KMP and Senior Management). There are no exceptionalcircumstances for increase in the managerial remuneration.

f) If remuneration is as per the Compensation Policy of the Bank: Yes


The provisions of Section 134(3)(m) of the Companies Act 2013 relating to conservationof energy and technology absorption do not apply to the Bank. However as mentioned inearlier part of the Report the Bank has been continuously and extensively usingtechnology in its operations. Foreign Exchange earnings and outgo are part of the normalbanking business of the Bank.


The Bank has in place a vigil mechanism pursuant to which a Whistle Blower Policy hasbeen in vogue for the last several years. The policy was last reviewed in FY 2019-20. ThisPolicy inter alia provides a direct access to a Whistle Blower to the Chief ComplianceOfficer (CCO) on his dedicated e-mail and Chairman of the AuditCommittee of the Board (ACB) on his dedicated email-ID The WhistleBlower Policy covering all employees and Directors is hosted on the Bank's website athttp://www.dcbbank. com/cms/showpage/page/whistle-blower-policy".

None of the Bank's personnel have been denied access to the Audit Committee.


The Bank has designed and implemented a process driven framework for Internal FinancialControls ("IFC") within the meaning of the explanation to Section134 (5)(e) ofthe Companies Act2013. For the year ended March 31 2021 the Board is of the opinionthat the Bank has sound IFC commensurate with the nature and size of its businessoperations wherein controls are in place and operating effectively and no materialweaknesses exist. The Bank has a process in place to continuously

monitor the existing controls and identify gaps if any and implement new and/orimproved controls wherever the effect of such gaps would have a material effect on theBank's operation.


Based on the frame work of internal financial controls and compliance systemsestablished and maintained by the Bank the work performed by the Internal Statutory andSecretarial Auditors and the reviews performed by the Management and the relevant BoardCommittees including the Audit Committee of the Board the Board is of the opinion thatthe Bank's internal financial controls were adequate and effective during the year endedMarch 31 2021. Accordingly pursuant to Section 134(5) of the Companies Act 2013 basedon the above and the representation received from the Operating Management the Board ofDirectors to the best of their knowledge and ability confirms that:

(i) in the preparation of the annual accounts the applicable accounting standards havebeen followed and that there were no material departure there from;

(ii) they have in the selection of the accounting policies consulted the StatutoryAuditors and have applied their recommendations consistently and made judgments andestimates that are reasonable and prudent as to give a true and fair view of the state ofaffairs of the Bank as at March 31 2021 and of the profit of the Bank for the year endedon that date;

(iii) they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Bank and for preventing and detecting fraud and otherirregularities;

(iv) they have prepared the annual accounts on a going concern basis;

(v) they have laid down internal financial controls to be followed by the Bank and thatsuch internal financial controls are adequate and were operating effectively during theyear ended March 31 2021; and

(vi) proper system has been devised to ensure compliance withthe provisions of allapplicable laws and that such systems were adequate and operating effectively during theyear ended March 31 2021.


A copy of the Annual Return as of March 31 2021 pursuant to the sub-section (3) ofSection 92 of the Companies Act 2013 read with Rule 11 (1) of the Companies (Managementand Administration) Rules 2014 and forming part of this Report is placed on the websiteof the Bank as per provisions of Section134(3) (a) and is available at the following link:


The Bank has been continuously observing the best corporate governance practices andbenchmarks itself against each such practice.

A separate section on Corporate Governance and a Certificate from the StatutoryAuditors M/s. S. R. Batliboi & Associates LLP Chartered Accountants (RegistrationNo.101049W/E300004) regarding compliance of the conditions of Corporate Governance asstipulated in Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 forms part of this Annual Report.


During FY 2021 Mr. S. Sridhar and Mr. C. Narasimhan Non-Executive IndependentDirectors were ceased to be the Directors of the Bank on October 11 2020 and Mr. JamalPradhan Non-Executive Non-Independent Director was ceased to be a Directors of the Bank onJanuary 14 2021 after completing their terms of eight consecutive years (the maximumpermissible) as per the provisions of the Banking Regulation Act 1949. The Board ofDirectors places on record its deep sense of appreciation for the valuable contributionsmade by Mr. S. Sridhar Mr. C. Narasimhan and Mr. Jamal Pradhan during their longassociation as Directors of the Bank.

Mr. Shaffiq Dharamshi (DIN-06925633) was liable to retire by rotation and beingeligible has offered himself for re-appointment.

With approval of the Reserve Bank of India the Board of Directors of the Bankre-appointed Mr. Nasser Munjee as Non-Executive (Part Time) Chairman of the Bank for aperiod of one year from August 19 2020 on an honorarium of '24 lakh per annum andreimbursement of actual business related expenses and annual club membership fee. TheBoard of Directors of the Bank recommends his re-appointment and payment of honorarium inthe ensuing AGM.

The Board of Directors in its meeting held on May 8 2021 has taken on record theapproval of the Reserve Bank of India vide letter DOR.GOVNo. 37539/29.03.001/2021- 22dated April 15 2021 approving reappointment of Mr. Murali M. Natrajan as the MD & CEOof the Bank for a period of one year from April 29 2021 on the remuneration as detailedin the explanatory statement of the notice of the 26th AGM. The Board of Directors of theBank recommends his re-appointment and payment of remuneration at the ensuing AGM.

A brief resume relating to the persons who are to be reappointed as Director Chairmanand Managing Director & CEO is furnished in the notice of the 26th AGM as well as inthe report on Corporate Governance. Based on the disclosures provided by them none of theabove mentioned persons is disqualified from being appointed as a Director in terms ofSection 164 of the Companies Act 2013.

In the opinion of the Board of Directors all the above mentioned Directorsappointed/re-appointed during the year possess the required integrity expertise andexperience.

None of the Directors of the Bank is related to each other per se.


There was no change in Key Managerial Personnel of the Bank during the year ended March31 2021


1. The Chairman of the Nomination and Remuneration Committee of the Board (NRC) sentdraft parameterized feedback forms for evaluation of the Board the Committees Directorsand the Chairman through the Company Secretary of the Bank.

2. Independent Directors at a meeting without the presence of anyone from theNon-Independent Directors and management considered/evaluated the Board's performanceperformance of the Chairman. Managing Director & CEO and other NonIndependentDirectors.

3. The NRC and the Board subsequently evaluated the performance of the Board theCommittees and Independent as well as Non-Independent Directors. The members of the Boardand the respective Committees evaluated the Board and the individual Committee. Everyindividual Director evaluated every other Director. The results were collated and theChairman informed that the performance of the Board as a whole and its Committees wassatisfactory.

The Chairman of the Board had one-on-one meeting with each Director to understand theDirectors' input on effectiveness of the Board/Committees.



M/s. S R Batliboi & Associates LLP Chartered Accountants (Registration No. 101049W/E300004) are the current Statutory Auditors of the Bank. They were appointed as StatutoryAuditor of the Bank in the 25th AGM held on July 11 2020 to hold office for aperiod of four consecutive years from the conclusion of the 25th AGM of theBank till the conclusion of the 29th AGM to be held for the Financial Year2023-24 subject to the approval of the Reserve Bank of India.

Pursuant to the Guidelines for Appointment of Statutory Central Auditors(SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs) UCBs and NBFCs(including HFCs) dated April 27 2021 issued by the Reserve Bank of India ('RBIGuidelines') banks may appoint the SCAs/SAs for a continuous period of three years. SinceM/s. S R Batliboi & Associates LLP have already completed one year as StatutoryAuditors of the Bank for FY 2020-21 they may continue as Statutory Auditor for two moreyears i.e. FY 2021-22 and FY 2022-23 subject to the approval of the RBI. In view ofthis the Bank needs to revise the tenure of appointment of M/s. S R Batliboi &Associates LLP as Statutory Auditor of the Bank to be read as a period of three yearsw.e.f FY 202021 till FY 2022-23 instead of the original tenure of four years w.e.f FY2020-21 till FY 2023-24 as earlier approved by the shareholders. Further the RBIGuidelines mandate that for banks with asset size of ' 15000 crore and above as at theend of previous year the statutory audit should be conducted under joint audit of aminimum of two audit firms. As the asset size of the Bank is above the threshold giventhe Bank needs to appoint minimum of two joint statutory auditors as per RBI guidelines.Accordingly the Board of Directors on the recommendation of the Audit Committee hasfinalized and recommended to RBI for approval the name of M/s Sundaram & SrinivasanChartered Accountants (ICAI Registration No. 004207S) as the first preferred firm to actas joint Statutory Auditors of the Bank for a period of three years from FY 2021-22 tillFY 2023-24 subject to approval of the shareholders at the ensuing AGM and subject to RBIapproval for each year of their tenure. This firm shall act as the joint StatutoryAuditors of the Bank along with M/s. S R Batliboi & Associates LLP for FY 2021-22 andFY 2022-23 and thereafter act as joint Statutory Auditors of the Bank with such other newjoint Statutory Auditor(s) who will be appointed by the Bank subject to prior permissionof RBI and approval of the Members of the Bank from FY 2023-24 onwards.

Appropriate Resolutions in this regard are being proposed at the ensuing AGM forapproval of the Members.

During the year ended March 31 2021 total fees ' 97 Lakh paid to the StatutoryAuditors M/s. S R Batliboi & Associates LLP.


Pursuant to the requirements of the Companies Act 2013 the Bank has appointed M/s.Ananthasubramanian & Co. Practicing Company Secretaries (COP 1774) as the SecretarialAuditor for FY 2021 and their report is attached separately to this Report.


Your Board wishes to thank the principal Shareholder and Promoters the Aga Khan Fundfor Economic Development S.A. (AKFED) and all the other Shareholders for the confidenceand trust they have reposed in the Bank. Your Board also acknowledges with appreciationthe Reserve Bank of India (RBI) for its valuable guidance and support to the Bank. YourBoard similarly expresses gratitude for the assistance and cooperation extended by SEBIBSE NSE NSDL CDSL NPCIL Central Government and the Governments of various StatesUnion Territories and the National Capital Region of Delhi where the Bank has itsbranches.

Your Board acknowledges with appreciation the invaluable support provided by theBank's auditors lawyers business partners and investors. Your Board is also thankful forthe continued co-operation of various financial institutions and correspondents in Indiaand abroad.

Your Board wishes to sincerely thank all its customers for their patronage. Your Boardrecords with sincere appreciation the valuable contribution made by employees at alllevels and looks forward to their continued commitment to achieve further growth and takeup more challenges that the Bank has set for the future.

On behalf of the Board of Directors
Place: Mumbai Nasser Munjee
Date: July 13 2021 Chairman