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CHAIRMAN'S STATEMENT 2012–2013
A Satisfying Year
The Indian Economy: last year was characterized by a tightening of monetary policy to combat inflation. The liquidity conditions also remained difficult throughout the year. Due to domestic and international challenges, economic activity and growth got impacted. It appears that bold government policy initiatives may be required as soon as possible to encourage investment and regain growth trajectory.
In an adverse economic environment, DCB continued to perform well and delivered a strong growth in Balance Sheet and profitability We continued to pursue retail deposits and secured lending. Prudent lending and timely portfolio actions helped to contain NPAs in a difficult year. The Bank's net NPA was below one percent and provision coverage ratio was 85.7%.
This year, the Bank crossed three major benchmarks. The Balance Sheet size crossed the Rs. 10,000 crore mark to close at Rs. 11,279 crore; Net worth crossed the important Rs. 1000 crore mark to close at Rs. 1,003 crore and our Profit After Tax crossed the Rs. 100 crore mark to close at Rs. 102 crore. DCB has delivered three years of continuous profitability and we hope to build on this momentum even further in the coming years.
In a year when capital raising was not easy, DCB raised Tier I capital of Rs. 40.62 crore through Preferential Allotment. The Bank's Capital Risk Adequacy Ratio (CRAR) stood at 13.61. CRISIL has upgraded the Bank's Long Term rating to A–/Stable and Short Term rating to A1+. The rating upgrade is a result of consistent delivery and step–by–step improvement over the past many quarters by the Bank. Both these events reflect the comfort external investors as well as rating agencies have placed on DCB's performance. Twenty nine investment analysts are now tracking DCB and most of them have made positive observations.
Performance is a function of the culture and passion of an institution. The results we see today is an outcome of the enormous efforts that have been placed on developing a distinctive "DCBian" culture. The selection of personnel, their induction, training, value systems are all part of a carefully planned process that is currently being evolved in the Bank. The Human Resource (HR) development initiatives undertaken at DCB are second to none. They involve all aspects of human development and this effort is now laying the foundations for a very unique institution for the future. DCB was awarded as "Great Place to Work" in the study conducted by Great Place to Work Institute.
During the year, DCB relocated to its new owned Corporate Office premises at Peninsula Business Park in Lower Parel. To mark this historic occasion, we invited Prince Rahim Aga Khan to India to be present during the inauguration. We are very grateful to Prince Rahim having readily agreed to be in India with us for this purpose. Subsequently, our back office operations and technology office which was located in Vikhroli was also co–located to Peninsula Business Park. The close proximity of operations and Corporate Office is likely to help speed up internal decision making and improve customer service substantially. Our new owned premises is the physical embodiment of a new institutionalization that is currently taking place at DCB.
Creating a great place to work and a conducive physical office space are designed for a single purpose: our customer. The entire focus of attention of the organization is to strive to give DCB's customers the best personalized banking service possible. In order to achieve this goal, we need highly trained and sensitive frontline staff armed with a back office that can deliver in the most efficient manner possible. We have been working very hard on this and we hope this year to ensure we meet our own rigorously set service standards. As Chairman, I have taken it upon myself to meet our customers both in organized meetings as well as at branches in order to assess for myself our progress in meeting the goals we ourselves have established. One thing we will always strive for: fixing problems as they arise and listening to our customers for a better and more personalized delivery of banking services using the best technology at our disposal.
The theme of this year's annual report is "momentum". We feel we have built momentum to break out of a cycle we found ourselves in some years ago. I firmly believe we are now in a much better position which can only strengthen as we continue to execute our plans with discipline and care. Linear momentum possesses both direction as well as magnitude. DCB has reinvented itself over the past few years and has succeeded in gaining momentum in a predetermined direction. As we continue to increase this momentum we are confident of taking on greater challenges as we look into the future.
April 12, 2013