Investor Presentation Q4 FY 2011

April 2011

Private & Confidential

Disclaimer
This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Development Credit Bank Limited (the Bank). This presentation has been prepared for information purposes only and is not an offer or invitation, directly or indirectly, to buy or sell any securities, nor shall part, or all, of this presentation form the basis of or be relied on in connection with, any contract or investment decision in relation to any securities. This presentation is not an offer document or a prospectus under the Companies Act, 1956, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended and any other applicable law. This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Bank, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Bank or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding expansion plans and the benefits there from, fluctuations in our earnings, our ability to manage growth and implement strategies, intense competition in our business including those factors which may affect our cost advantage, our ability to attract and retain highly skilled professionals, changes in technology, availability of financing, our ability to successfully complete and integrate our business plans, liabilities, political instability and general economic conditions affecting our industry. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is not an offer of securities for sale in the United States or in any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. No shares or other securities may be offered or sold other than in compliance with the laws of relevant jurisdictions, including the United States Securities Act of 1933, as amended. By viewing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Bank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Bank. Except as otherwise noted, all of the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and has not been verified by us. The information contained in this presentation, except as otherwise noted, is only current as of the date of the presentation, is subject to change without notice. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without any obligation to notify any person of such revision or changes. Persons relying on the information in this presentation should do so at their own risk and the Bank shall not be responsible for any kind of consequences or liability to any person arising out of, relying and acting upon any such information.

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Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

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DCB Overview
DCB at a glance
Development Credit Bank Ltd (DCB) http://www.dcbl.com is a modern emerging new generation private sector bank. Present since 1930s, DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995 Distribution network of 80 branches across 28 cities and 134 ATMs (as on March 31, 2011)

Comprehensive product range & scalable infrastructure

Business model focused on achieving a balance between Retail Mortgages, Micro SME(MSME), SME, Agri/Microfinance and mid-Corporate Comprehensive range of banking products across all businesses Modern systems and infrastructure to support growth- Finacle, FinnOne, CMS, Internet and Mobile banking

Traditional loyal customer base

Traditional sticky customer base helped by presence of branch network in select areas of Maharashtra, Gujarat & AP Provides DCB access to low cost deposits

Continued focus on building low cost franchise

Continued focus on building a low cost deposit franchise with strong capital position CASA of 35.2% and CRAR of 13.25% under Basel II (as on March 31, 2011)

Steady improvement in credit ratings

Rating agencies have upgraded the rating guidelines for DCB Crisil rating (Long term): BBB + / Stable, Crisil rating (Short term): P1 and Fitch rating: BBB / Stable

Robust Promoter background

DCBs promoter, Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed is present in 16 countries employing over 30,000 people Promoter group holds 23.08% stake in DCB ( as on March 31, 2011)

Pedigreed board and experienced Management team

Nasser Munjee, Chairman: Ex- Executive Director HDFC, instrumental in setting up IDFC & sits on the boards of many large Indian companies Murali M. Natrajan, MD & CEO: worked in Standard Chartered Bank (Global Head SME Banking), Citibank, American Express; strong Retail Banking & SME experience in India & abroad

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Key Milestones
In Existence Since 1930s

1981 Amalgamation of Masalawala Cooperative Bank and Ismailia Cooperative Bank into Development Cooperative Bank Ltd.

1984 Multi-State Cooperative Bank

1988 Acquired Scheduled status from Reserve Bank of India

1995 Conversion to Development Credit Bank Ltd. Secured Foreign Exchange License & became an Authorized Dealer

2004 Classified as a New Generation Private Sector Bank by the RBI

2006 IPO

Tier I Capital Raising

2005 Private Equity Investment by AKFED (Principal Promoter) of INR 1.38 bn in March 2005

2006 Private Equity investment of INR 519.9 mn by HDFC and Khattar Holdings and others in February 2006

2006 Raised INR 1.86 bn through IPO, issue oversubscribed 35 times

2007 Preferential Allotment of INR 2.8 bn in Aug 2007 to Al Bateen, TATA Capital, DCB Investments (SVG Capital) and others

2009 Raised INR 810 mn through QIP in November 2009 subscribed by life insurance companies, mutual funds and FIIs

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Robust Promoter Background and Strong Investor Profile

Shareholding Pattern (March 31, 2011)

Key non-promoter shareholders

Promoter and Promoter Group 23.08%

Al Bateen Investment Co. LLC: 3.69% Tata Capital Ltd.: 3.29%

Institutions 10.20%

DCB Investments Ltd. (SVG Capital): 2.65% The India Fund, Inc.: 2.17% HDFC Ltd.: 2.02%

Others (NonInstitutions)* 10.84% Bodies Corporate 15.20% Individuals 40.68%

Shareholding Pattern

Satpal Khattar: 1.62% Sundaram BNP Paribas Mutual Fund: 1.47% Girdharilal Lakhi: 1.26% Macquarie Bank Ltd.: 1.13%

*Includes Clearing Members (1.53%), Non Resident Indians (2.95%), Foreign Corporate Bodies (6.34%), Directors and their relatives (0.02%)

DCB is promoted by the Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed AKFED is an international development enterprise. It is dedicated to promoting entrepreneurship and building economically sound companies
Aga Khan Fund for Economic Development

AKFED operates as a network of affiliates with more than 90 separate project companies employing over 30,000 people. The Fund is active in 16 countries in the developing world

Principal Promoter

Note: Numbers are rounded off upto two decimal places

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Experienced Board
Nasser Munjee Non- Executive Chairman Ex- Executive Director HDFC, instrumental in setting up IDFC. Sits on 15 corporate Boards in India including HDFC, Tata Motors etc Sukh Dev Nayyar Associated with ANZ Grindlays Bank plc for over 30 yrs. Last assignment with Grindlays as Head - Corporate Banking & Investment Banking, India Independent Director on the boards of Diamond Trust Bank Kenya and Greaves Cotton Suhail Nathani Founder Partner of Economic Laws Practice, a law firm. Serves as an Independent Director on the Board of Phoenix Mills, India Advisory Board of Duke University etc. Murali M. Natrajan Managing Director & CEO Standard Chartered Bank, Citibank, American Express *27 yrs exp.

Amir Sabuwala Specializes in Small Scale Industries. Set up several small-scale industries over the past 32 years which include - Premier Chemicals, Asian Industries, Life Technologies, etc

Board of Directors

Darius Udwadia Solicitor & Advocate of the Bombay High Court and Solicitor of the Supreme Court of England and Wales. Founder Partner of Udwadia & Udeshi. Independent Director on the Boards of several corporate entities

Shabir Kassam Certified Public Accountant from Australia and a Fellow of the Association of Chartered Accountants, United Kingdom. Banking consultant for the last eight years

Narayan Seshadri Specialization in the field of agriculture, SSI & Rural economy. Corporate consultant and is on the Board of a number of companies

Rajab Momin Bachelor of Commerce and Fellow of Institute of Chartered Accountants of India. Experience in the field of accounting and audit

Nasim Devji Fellow of the Institute of Chartered Accountants of England & Wales (FCA). Currently working as Managing Director of Diamond Trust Bank Kenya & Group CEO of Diamond Trust Banks in East Africa
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* Worked in India & Abroad

Strong Management Team

Bharat Sampat Chief Financial Officer ABN Amro Bank, Standard Chartered Bank, ANZ Banking Group, Hoechst India *25 yrs exp. Murali M. Natrajan Managing Director & CEO Standard Chartered Bank, Citibank, American Express *27 yrs exp. Praveen Kutty Head - Retail, SME Banking Citibank *19 yrs exp.

R. Venkattesh Head - HR, IT & Operations Standard Chartered Bank, ANZ Grindlays Bank, Hindustan Petroleum 20 yrs exp.

Anoop Prabhakar Head - Corporate Banking State Bank of India * 33 yrs exp.

Rajesh Verma Head - Treasury

State Bank of India *31 yrs exp.

Management

J. K Vishwanath Chief Credit Officer Fullerton India, Citigroup and Eicher Group 17 yrs exp.

Abhijit Bose Head Retail Assets Standard Chartered Bank, Citibank, Eldeco Housing Industries and GIC Housing *18 yrs exp.

Sridhar Seshadri Financial Controller ICICI Bank, Syndicate Bank and State Bank of India 28yrs exp.

Ravi Kumar Chief Internal Auditor Samba Financial Group, Ernst & Young *13 yrs exp.

Gaurav Mehta Head Marketing, Corporate Communication & Public Relations HSBC India, Convergys, GE Capital and Taj Group of Hotels 15 yrs exp.

Sachin Patange Chief Compliance Officer Reserve Bank of India 20 yrs exp.

Manoj Joshi Business Head SME ICICI Bank, Epcos Ferrites and Uniworth Group 15 yrs exp.

Hemant Barve Company Secretary Ritchie Steuart Investments and Union Bank of India 36 yrs exp.

Narendranath Mishra Head - AMRB ICICI Bank and Rallis India 11 yrs exp.

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8 * Worked in India & Abroad

80 Branches, Strong Presence in the Western Region

Geographic Footprint *
GOA Mapusa (1) Margao (1) Panaji (1) Vasco -Da-Gama (1) GUJARAT Ahmedabad (3) Ankleshwar (1) Bhuj (1) Daman (1) Dediapada (1) Gandhinagar (1) Rajkot (1) Sidhpur (1) Silvassa (1) Surat (1) Vadodara (1) Vapi (1) MAHARASHTRA Aurangabad (1) Mumbai & Its Suburbs (28) Nanded (1) Nashik (1) Pune (4) ANDHRA PRADESH Hyderabad (8) Warangal (2) HARYANA Gurgaon (1) KARNATAKA Bengaluru (4) NEW DELHI Chandni Chowk (1) Connaught Place (1) Greater Kailash II (1) Kapashera Road (1) Kondli (1) Preet Vihar (1) RAJASTHAN Jodhpur (1) TAMIL NADU Chennai (2) WEST BENGAL Kolkata (3)

Branches DCB ATMs **Network

80 134 35,000 +

* Branch locations as shown on the map are approximate may not represent the exact location ** Tie up with Euronet enables DCB customers to access VISA ATMs across the world

July-10:DCB received permission from RBI to open 2 new Rural/Semi-Urban branches at Netrang (Bharuch Distt.) & Mandvi (Surat Distt.) in Gujarat
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Products & Services

Retail Banking
Deposit Products: Current and Savings Term Deposits NRI Deposits Corporate Salary POS Terminals Lockers Cards: ATM Card Debit Card Travel Card*** Secured Card*** Gift Card*** Credit Card* Payments: Remittances Bill / Utility Payments RTGS / NEFT On-line Share Trading/Demat Tax Payments Loans: Auto Loans* Commercial Vehicle* Construction Equipment* Gold Loans Home Loans Loan Against Property Loan Against Shares Wealth Management: Investment Advice Mutual Funds Life Insurance and General Insurance Services: 24/7 Phone Banking Any Branch Banking Privilege Banking Internet and Mobile Banking

SME, Corporate Banking, NBFCs, Co-operative Banks

Current Account Trade Current Account Working Capital Term Loans Supply Chain Portfolio Buyout Import /Export Bills Collection Foreign Exchange Letters of Credit Guarantees

Cash Management** RTGS /NEFT Internet Banking

Treasury, NBFCs, Co-operative Banks

Statutory Reserves Management Liquidity Management Trading in Government Securities Foreign Exchange Corporate Bonds CDs Equity Investment

DCB offers a comprehensive range of products and services

*Offered to existing customers only ** DCB has tie up with HDFC Bank and Axis Bank to provide customers with cash management facilities at over 500 locations across india *** Launched on trial basis
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Contents

Development Credit Bank - Overview

Recent Events

Business Strategy & Financials

Annexure

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Recent Events
Key challenges since mid 2008 Increase in NPAs and provisions mainly on account of unsecured personal loans, commercial vehicle, construction equipment and a few corporate loans Decrease in size of balance sheet negatively impacting core income Cost structure created to support accelerated retail loans growth Rating downgrades impacting borrowing Top heavy organization Dependence on bulk deposits Strategic initiatives / Actions Substantial reduction in unsecured personal loans, CV and CE portfolio Stabilization of NPAs through intensive collections and recovery efforts. Coverage ratio of 87.64% as on March 31, 2011 Reduction in cost base Implementation of new business strategy resulting in steady balance sheet growth Launch of new deposit products Increase in CASA and retail term deposits to lower cost of funds and improve NIMs Rating upgrades Strengthening of Credit, Operations and Internal Audit Leaner organization structure, improvement in staff morale and retention Raising of Tier I (INR 810 mn) and Tier II (INR 650 mn) capital in FY10 to support growth in advances

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Ratings
Feb 28, 2009 CRISIL - Long Term - Short Term FITCH Brickworks P1 BBB/Negative BBB/Stable P1 BBB/Negative BWR A-/Stable BBB +/Stable P1 BBB/Stable BWR A-/Stable Jul 31, 2009 Sep 30, 2010

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Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

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Business Strategy
Grow Retail Mortgages, micro SME, SME, mid- Corporate and Agri & Inclusive Banking with a customer centric approach. Concentrate on secured lending & diversified portfolio Retail branch centric Low cost deposits (CASA / Term) Secured lending (Home loans, Loan against property, Loan Against Term Deposit) Micro SME Traditional customer base Third party fee income Treasury Liquidity management, opportunity for gains within acceptable risks Relentless focus on Costs / Income Ratio and Service

Stringent mechanism for managing Credit and Operational risks

Continuously improve people quality and delivery

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Target

Calibrated growth, diversified portfolio with emphasis on secured lending Focus on retail deposits to lower funding cost

Approach

Enhance fee income Income before costs Discipline in execution (strategy / credit / operations / costs)

Increase balance sheet size

Goal

Improve cost / Income ratio Improve ROA and ROE

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Calibrated Growth in Balance Sheet

Total Assets
INR mn

7 3,7 23 7 5 ,77 5 5 9 ,4 3 0 5 7 ,99 1 5 5 ,90 7 5 7,0 2 1 6 1,3 6 7 6 3,7 3 3 6 9,3 7 7 69 ,8 89

M ar 3 1, 2 0 08

M ar 3 1, 2 00 9

J un 3 0, 2 00 9

S ep 3 0, 2 00 9

D ec 31, 2 00 9

M a r 31, 2 010

Jun 30 , 20 10

Se p 30 , 20 10

D e c 31, 20 10

M a r 3 1, 20 11

Net Advances*

INR mn

42,715 40,688 32,740 31,048 29,631 31,392 34,597 34,786 38,398 39,557

M ar 31, 2008

M ar 31, 2009

Jun 30, 2009

Sep 30, 2009

Dec 31, 2009

M ar 31, 2010

Jun 30, 2010

Sep 30, 2010

Dec 31, 2010

M ar 31, 2011

Note: Financial numbers are rounded off to nearest whole number * Net Advances Gross advances less (net of) provisions
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Building Stable Low Cost Funding Base

Deposits
4,271 3,957 2,422 2,093 1,047 1,590 1,510 1,652 1,799 2,601

INR mn INR mn

41,735

28,101

27,980

26,365

26,680

29,356

31,220

34,301

36,002

33,746

14,743 M ar 31, 2008

14,411 M ar 31, 2009

15,312 Jun 30, 2009

16,567 Sep 30, 2009

C A SA

17,097 Dec 31, 2009

T e rm D e po s it s

16,927 M ar 31, 2010

O t he r D e po s it s

18,422 Jun 30, 2010

18,998 Sep 30, 2010

18,704 Dec 31, 2010

19,755 M ar 31, 2011

INR mn Mar 31, 2008 Mar 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011

Retail Deposits/ Total Deposits

51.95%

67.53%

81.54%

79.77%

78.65%

78.98%

81.17%

CASA Ratio

24.27%

31.01%

35.36%

36.02%

34.57%

33.10%

35.21%

Access to low cost stable funding source to support advance growth without undue reliance on volatile wholesale funding
Note: Financial numbers are rounded off to nearest whole number
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Thrust on Low Cost Deposits through Branch Network

Retail CASA & Retail Term Deposits
INR mn

27,085 17,673 18,132 21,653 21,737 21,594 23,056 23,830 25,694 26,863

13,884 M ar 31, 2008

13,248 M ar 31, 2009

14,346 Jun 30, 2009

15,438 Sep 30, 2009

15,998 Dec 31, 2009 Retail CASA

15,978

16,972 Jun 30, 2010

17,525

17,763

18,455

M ar 31, 2010

Sep 30, 2010

Dec 31, 2010

M ar 31, 2011

Retail Term Deposits

Retail Deposits / Branch

INR mn

339 221 227 271 272 270 288 298 321 336

174 M ar 31, 2008

166 M ar 31, 2009

179 Jun 30, 2009

193 Sep 30, 2009

200

200

212

219

222

231

Dec 31, 2009

M ar 31, 2010

Jun 30, 2010

Sep 30, 2010

Dec 31, 2010

M ar 31, 2011

Retail CASA / Branch

Note: Financial numbers are rounded off to nearest whole number
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Retail Term Deposits / Branch

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Increased Provisions with Adequate Coverage

Key Ratios
11.24%

10.86% 8.78% 76.66% 66.20% 48.40% 53.34% 64.37% 52.81% 4.96% 1.49% 0.66% M ar 31, 2008 M ar 31, 2009 Jun 30, 2009 3.88%

11.05% 82.50% 89.88% 75.19% 8.47% 93.99% 79.64% 7.61% 96.68% 84.73% 7.07% 5.86% 100.00% 87.64%

68.93% 61.28%

73.25% 63.42%

70.04% 8.69%

4.67%

4.35% 3.11% 2.53% 1.86% 1.30% Sep 30, 2010 Net NP A% Dec 31, 2010 0.97% M ar 31, 2011

Sep 30, 2009

Dec 31, 2009

M ar 31, 2010

Jun 30, 2010 Gross NP A%

Coverage Ratio - Bank

Coverage Ratio - P L

INR mn Personal Loans CV/CE/STVL* Corporate Others Gross NPA Net NPA**

Mar 31, 2008 338 71 162 63 634 270

Mar 31, 2009 1,326 533 988 209 3,056 1,270

Mar 31, 2010 1,694 599 594 305 3,192 1,076

Jun 30, 2010 1,659 584 590 307 3,140 878

Sep 30, 2010 1,617 540 654 296 3,107 714

Dec 31, 2010 1,586 496 617 274 2,973 515

Mar 31, 2011 1,293 452 588 303 2,636 412

Note: Financial numbers are rounded off to nearest whole number / Net NPAs are net of provisions * CV / CE / STVL represents Commercial Vehicle, Construction Equipment and Small Ticket Vehicle Loan ** Net NPA = Gross NPA (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + total provisions held)
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Calibrated Growth with Focus on Select Areas

INR mn CASA Retail Term Deposits Mortgages (sourced & acquired) SME + Micro SME Agri & Inclusive Banking Corporate Banking

Mar 31, 2008 14,743 17,502 2,464 1,673 3,390 18,458

Mar 31, 2009 14,411 18,132 2,626 4,483 5,710 9,327

Mar 31, 2010 16,927 23,056 4,118 6,004 8,583 11,095

Mar 31, 2011 19,755 27,085 10,811 10,219 8,502 11,051

Note: Financial numbers are rounded off to nearest whole number

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Diversified Portfolio
Portfolio* as on Mar 31, 2009
Retail Banking - 40%

Portfolio* as on Mar 31, 2010

Retail Banking - 26%

Ot hers 5% SM E+M S M E 14%

M o rt gages 8%

C V/ C E/ S T VL 17% P ers o na l Lo ans 10 %

M o rtgages 12% O thers 3% SM E+M SM E 17%

C V/ C E/ ST VL P erso nal Lo ans 8% 3% A IB 25%

C o rpo rat e B a nking 29%

A IB 17%

C o rpo rate B anking 32%

Portfolio* as on Sep 30, 2010

Retail Banking - 33%

Portfolio* as on Mar 31, 2011

Retail Banking - 30%
M o rt ga ge s 25% C V/ C E/ ST VL 2% P e rs o na l Lo a ns 0 .2 % A IB 20%

M o rt ga ge s 24 %

C V / C E / S T VL 5%

P e rs o na l Lo ans 1% A IB 14%

Ot he rs 3% S M E +M S M E 19% C o rpo ra t e B anking 3 4%

O t he rs 3% S M E +M S M E 24%

C o rpo ra t e B a nk ing 26%

Note: Financial numbers are rounded off to nearest whole number * AIB Agri & Inclusive Banking, MSME Micro SME, CV / CE / STVL Commercial Vehicle, Corporate Equipment and Small Ticket Vehicle Loan
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Focus on Cost Management

Operating Income
INR mn

1,861 1,972 1,420 1,891

1,626 1,201 FY08 FY09 1,071 FY10 433 299 Q1 FY11 Other Incom e 464 269 Q2 FY11 Net Interest Incom e 493 260 Q3 FY 11 502 292 Q4 FY11

1,121

FY11

Operating Cost
80.62%

INR mn

76.27% 971 1,044 881 69.13% 68.56% 1,420 1,376 1,127 248 258 FY08 FY09 FY10 Q1 FY11 Operating Cos t 250 275 Q2 FY11 Staff Cos t 273 274 Q3 FY 11 1,088 71.59% 72.59%
7 2 .3 1%

1,064
7 1.4 3 %

292 282 Q4 FY11

FY11

Cost Incom e Ratio

Note: Financial numbers are rounded off to nearest whole number

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Improvement in Operating Performance

Operating Profit
INR mn

1,096 753 483 226 FY08 FY09 FY10 Q1 FY11 208 Q2 FY11 206 Q3 FY11 220 Q4 FY11 FY11 860

Provisions

INR mn

1,634 1,268 713 255 FY08 FY09 FY10 Q1 FY11 160 Q2 FY11 124 Q3 FY11 106 Q4 FY11 FY11 646

Note: Financial numbers are rounded off to nearest whole number * Provisions include provisions for NPAs, standard assets, income tax, fringe benefit tax, other assets, restructured advances etc Provisions also includes depreciation on investments and sacrifice of one time settlement
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Bottom Line Improvement

Net Profit / Loss *
INR mn

383 48 82 214 113

(29)

(881) FY08 FY09

(785) FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11

Note: Financial numbers are rounded off to nearest whole number * Net Profit / (loss) represents post tax numbers
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NIM, Yield on Advances and Cost of Funds

Net Interest Margin
3.12% 3.03% 2.86% 2.79% 3.14% 3.13% 3.15%

INR mn

3.13%

FY08

FY09

FY10

Q1 FY11

Q2 FY11

Q3 FY11

Q4 FY11

FY11

Yield on Advances & Cost of Funds

13.58% 12.33% 11.21% 10.95% 11.26% 11.72% 11.12%

13.32%

7.27%

7.51% 6.44% 5.63% 5.58% 5.82% 6.24% 5.83%

FY08

FY09

FY10

Q1 FY11 Yield on Advances

Q2 FY11 Cost of Funds

Q3 FY11

Q4 FY11

FY11

Note: Financial numbers are rounded off to nearest whole number

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Other Income
INR mn Commission, exchange and brokerage Sale of investments Sale of land, buildings and other assets Exchange transactions Lease income Miscellaneous income Total FY08 845 15 102 229 7 428 1,626 FY09 768 20 47 224 142 1,201 FY10 664 178 (3) 64 9 159 1,071 Q1FY11 156 86 (2) 18 41 299 Q2FY11 175 36 (2) 29 31 269 Q3FY11 165 57 (1) 17 22 260 Q4FY11 166 74 16 25 12 293 FY11 661 253 11 90 106 1,121

Note: Financial numbers are rounded off to nearest whole number

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Treasury
INR mn SLR Non-SLR Total Investments * HTM AFS HFT Total Investments * Mar 31, 2008 17,145 4,201 21,346 7,688 12,585 1,072 21,346 Mar 31, 2009 12,675 3,542 16,217 10,808 4,630 779 16,217 Mar 31, 2010 15,789 4,390 20,179 16,890 3,263 26 20,179 Mar 31, 2011 17,512 5,439 22,951 18,847 3,029 1,075 22,951

Note: Financial numbers are rounded off to nearest whole number * Represents Net investments (HTM Held To Maturity, AFS Available For Sale, Held For Trading)
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Capital Adequacy Ratios

Capital Adequacy Ratios Basel II

14.85% 13.30% 1.80% 13.80% 2.92% 2.40% 13.57% 2.31% 13.39% 2.26% 13.25% 2.15%

11.50%

11.93%

11.40%

11.10% 11.2 6% 11.13%

M ar 3 1, 2009

M ar 31, 2010

J un 30 , 2010 T ier I

S ep 30, 2 010 T ier II

D ec 31, 2 010

M a r 31, 2011

DCB has following approvals for raising capital in the future: Tier I QIP not exceeding INR 1,500 mn Tier I Rights not exceeding INR 2,000 mn

Note: Financial numbers are rounded off to nearest whole number

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Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

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Balance Sheet
Mar 31, 2008
6,343 60,749 4,268 4,361

INR mn Shareholders Equity Deposits Borrowings 1 Other Liabilities & Provisions 1

Mar 31, 2009

5,957 46,469 3,455 3,523

Mar 31, 2010

5,990 47,873 5,035 2,447

Jun 30, 2010

5,960 51,152 3,840 2,754

Sep 30, 2010

6,003 54,951 5,648 2,747

Dec 31, 2010

6,086 56,506 4,534 2,736

Mar 31, 2011

6,187 56,102 8,607 2,800

Cash, Inter-bank, etc Investments Advances Fixed Assets Other Assets Credit Deposit Ratio

10,615 21,346 40,688 998 2,128 66.98%

6,534 16,217 32,740 1,489 2,450 70.46%

3,324 20,179 34,597 1,358 1,909 72.27%

5,647 20,057 34,786 1,326 1,918 68.00%

6,177 20,975 38,398 1,308 2,518 69.88%

5,162 21,771 39,557 1,294 2,106 70.00%

4,871 22,951 42,715 1,275 1,912 76.14%

INR mn CASA Other Deposits Total Deposits CASA Ratio

Mar 31, 2008

14,743 46,006 60,749 24.27%

Mar 31, 2009

14,411 32,058 46,469 31.01%

Mar 31, 2010

16,927 30,946 47,873 35.36%

Jun 30, 2010

18,422 32,730 51,152 36.02%

Sep 30, 2010

18,998 35,953 54,951 34.57%

Dec 31, 2010

18,704 37,802 56,506 33.10%

Mar 31, 2011

19,755 36,347 56,102 35.21%

Note: Financial numbers are rounded off to nearest whole number 1 : Subordinated debt included in borrowings since March 31, 2010 as per RBI guidelines, same included in other liabilities and provisions in earlier periods
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Profit & Loss

INR mn Net Interest Income Other Income Operating Income Operating Expenses Operating Profit Total Provisions PAT Cost Income Ratio

FY08
1,861 1,626 3,487 (2,391) 1,096 (713) 383 68.56%

FY09
1,972 1,201 3,173 (2,420) 753 (1,634) (881) 76.27%

FY10
1,420 1,071 2,491 (2,008) 483 (1,268) (785) 80.62%

Q1FY11
433 299 732 (506) 226 (255) (29) 69.13%

Q2FY11
464 269 733 (525) 208 (160) 48 71.59%

Q3FY11
493 260 753 (547) 206 (124) 82 72.59%

Q4FY11
502 292 794 (574) 220 (107) 113 72.31%

FY11
1,891 1,121 3,012 (2,152) 860 (646) 214 71.43%

Note: Financial numbers are rounded off to nearest whole number

Private & Confidential

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Thank you

Private & Confidential

33