1

Dena bank

Un Audited (Reviewed) Quarterly / 9 Months Financial Results

For the Quarter / 9 Months ended December 31, 2010

WELCOMES YOU

AT ANALYSTS

MEET

JANUARY 27, 2011

Dena BANK Crosses Landmark business

mix of ` 1,00,000 crores

KEY INDICATORS

[` cr]

QuarterGrowth

[%]

9 Months Growth

[%]Dec 09 Dec 10 Dec 09 Dec 10

Operating *Profit

197.68 316.43 60.07 560.45 880.67 57.14

Net Profit * 134.52 155.21 15.38 374.18 454.63 21.50

Total Income 1149.04 1416.95 23.32 3360.89 3979.10 18.39

Total Expense 951.36 1100.52 15.68 2800.44 3098.43 10.64

Provisions & Contingencies

63.16 161.22 155.26 186.27 426.04 128.72

* Operating & Net Profit have been arrived at after debiting ` 70 cr on adhoc basis towards

liability on account of extension of Second Pension Option and enhancement in Gratuity Limit.

101.07

140.36 134.52

155.21

50

85

120

155

Dec'07[Q] Dec'08[Q] Dec'09[Q] Dec'10[Q]

Rs cr

166.66

265.24

197.68

316.43

100

140

180

220

260

300

340

Dec'07[Q] Dec'08[Q] Dec'09[Q] Dec'10[Q]

Rs cr

NET PROFIT

Operating PROFIT

Net interest margin

Quarter 9 Months

Dec 09 Dec 10 Dec 09 Dec 10

Net Interest Margins

2.53% 3.27% 2.40% 3.20%

2.532.80 2.82

3.52

3.27

2.0

2.4

2.8

3.2

3.6

4.0

Dec09 [Q] Mar10 [Q] June10 [Q] Sept10 [Q] Dec10 [Q]

[` cr]

QuarterGrowth

[%]

9 Months Growth

[%]Dec 09 Dec 10 Dec 09 Dec 10

Interest

Income1015.90 1289.89 26.97 2947.12 3626.03 23.04

Advances 766.21 986.37 28.73 2241.44 2735.35 22.04

Investment 246.59 299.92 21.63 687.68 879.07 27.83

Inter Bank 3.10 3.60 16.13 14.24 11.60 [18.54]

Others 0.00 0.00 0.00 3.76 0.01 [99.73]

Interest Expense

732.90 823.47 12.36 2173.20 2333.86 7.39

Deposits 695.42 780.61 12.25 2062.06 2218.80 7.60

Others 37.48 42.86 14.35 111.14 115.06 3.53

Net Interest income [NII]

283.00 466.42 64.81 773.92 1292.17 66.96

Net interest income

[` cr]Quarter 9 Months

Dec 09 Dec 10 Dec 09 Dec 10

Net Interest Income

283.00 466.42 773.92 1292.17

283326

360

465 466

200

250

300

350

400

450

500

Dec09 [Q] Mar10 [Q] June10 [Q] Sept10 [Q] Dec10 [Q]

Net interest income

NON interest income

[` cr]

QuarterGrowth

[%]

9 Months Growth

[%]Dec 09 Dec 10 Dec 09 Dec 10

Fee Based Income –Core

83.28 85.61 2.80 212.67 256.81 20.76

Profit from Sale of Securities

28.12 14.00 [50.21] 145.76 23.74 [83.71]

Recovery in Written off Advances

21.74 27.45 26.26 55.34 72.52 31.04

Total Non Interest Income

133.14 127.06 [4.57] 413.77 353.07 [14.67]

Provisions & contingencies

[` cr]Quarter 9 Months

Dec 09 Dec 10 Dec 09 Dec 10

Provisions for NPA 20.75 50.25 58.87 160.28

Tax Expense 33.91 75.53 114.92 224.67

Investment Depreciation 1.28 20.25 5.21 28.91

Standard Assets 7.18 19.87 7.18 21.25

FITL 0 [5.06] 0 [5.60]

NPV of Restructured Accounts 0 0 0 0

ADWDRS 2008 0 0 0 [4.07]

Other Provisions 0.04 0.38 0.09 0.60

Total Provisions 63.16 161.22 186.27 426.04

Business highlights DEPOSITS 26.41% at ` 60,479 cr (`47,844 cr in Dec 09)

CASA 26.14% at ` 21,406 cr (`16,970 cr in Dec09)

ADVANCES 33.96% at ` 41,426 cr (`30,924 cr in Dec 09)

MSME 20.69% at ` 6,265 cr (` 5,191 cr in Dec 09)

Retail 28.64% at ` 5,852 cr (` 4,549 cr in Dec 09)

Agriculture 19.56% at ` 5,086 cr (` 4,254 cr in Dec 09)

Gross NPA (Amt) `803.29 cr (` 825.65 cr in Sept 10 Qtr)

Gross NPA Ratio 1.94% (2.26% in Sept 10 Qtr)

Net NPA (Amt) `519.14 cr (` 537.79 cr in Sept 10 Qtr)

Net NPA Ratio 1.26% (1.49% in Sept 10 Qtr)

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

Dec'08 Dec'09 Dec'10

13,707

16,970

21,406

CASA Deposits

30,000

40,000

50,000

60,000

Dec'08 Dec'09 Dec'10

36,611

47,844

60,479

Total Deposits

DepositsBank has witnessed CAGR

growth of 24.97% in CASA

deposits over last two years.

Bank has witnessed CAGR

growth of 28.53% in Total

deposits over last two years.

advances[` cr] 2009-10 Dec 09 Dec 10

Gross Advances

[Growth %]

35,721

[22.39]

30,924

[20.39]

41,426

[33.96]

Priority Sector

[Growth %]

11,718

[20.61]

10,535

[18.30]

12,742

[20.95]

Agriculture

[Growth% ]

4,826

[25.33]

4,254

[30.28]

5,086

[19.56]

MSME

[Growth%]

5,647

[18.26]

5,191

[26.76]

6,265

[20.69]

Retail

[Growth %]

5,380

[21.60]

4,549

[9.48]

5,852

[28.64]

CD Ratio [%]69.57 64.64 68.50

investment

[` cr] 2009-10 Dec 09 Dec 10Growth

over Dec 09 (%)

SLR Investments 13371.18 13542.48 14688.50 8.46

Non-SLR Investments 2388.96 1982.37 3232.64 63.07

Total Investments 15760.14 15524.85 17921.14 15.44

Of which HFT 0 0 1063.87

[5.94%]

AFS 2662.34

[16.89%]

2799

[18.03%]

1704.84

[9.51%][39.09]

HTM 13097.80

[83.11%]

12726

[81.97%]

15152.43

[84.55%]19.07

AFS / HFT Duration [Modified]

4.71 4.67 3.84

Portfolio Duration [Modified]

5.17 5.09 4.59

KEY INDICATORS[` cr] Dec 08 Dec 09 Dec 10

Business mix per employee

6.41 7.47 10.06

Business mix per branch

57.84 71.74 85.78

20

40

60

80

100

Dec'08 Dec'09 Dec'10

57.84

71.7485.78

Business Mix/Branch

2

4

6

8

10

12

Dec'08 Dec'09 Dec'10

6.41

7.47

10.06

Business Mix/Empl

Asset quality

[` cr] 31.03.10 30.09.10 31.12.09 31.12.10

Gross NPA 641.99 825.65 585.52 803.29

Net NPA 427.53 537.79 364.71 519.14

Gross NPA Ratio [%] 1.80 2.26 1.89 1.94

Net NPA Ratio [%] 1.21 1.49 1.19 1.26

NPA Provision 205.18 281.85 213.21 276.09

Provision coverage Ratio [PCR]

[Incl Technical Write Off]

78.61 75.36 81.58 76.09

Asset quality

[` cr]FY Quarter 9 Months

2009-10 Dec 09 Dec 10 Dec 09 Dec 10

Gross NPA

Opening Balance 620.77 597.72 825.65 620.77 641.99

Less:

Cash recoveries 195.43 34.16 41.02 136.69 130.71

Up gradations 228.40 36.10 31.17 187.17 107.03

Write off 184.88 28.27 56.01 139.32 89.36

Total Reductions 608.71 98.53 128.20 463.18 327.10

Add:

Slippage & Debit Operations

629.93 86.33 105.84 427.93 488.40

Closing Balance 641.99 585.52 803.29 585.52 803.29

Recovery in w/o a/cs 125.54 21.74 27.45 55.34 72.52

Capital adequacy

[` cr] 31.03.10 30.09.10 31.12.09 31.12.10

Tier I capital 2451.64 2484.54 2326.20 2489.70

Tier II capital 1385.05 1311.28 1381.82 1329.80

Total capital funds 3836.69 3795.82 3708.02 3819.50

Total RWAs 30047.82 30876.03 28133.36 34472.14

CRAR – Basel II 12.77 12.29 13.18 11.08

CRAR Core – Basel II 8.16 8.04 8.27 7.22

Net Worth 10.65 2544.82 2087.06 2705.19

Financial ratiosFY Quarter 9 Months

2009-10 Dec 09 Dec 10 Dec 09 Dec 10

Cost of Deposit (%) 6.21 6.14 5.75 6.30 5.65

Yield on Advances (%) 10.32 10.37 10.32 10.45 10.11

Cost to Income Ratio (%)

50.22 52.50 46.68 52.81 46.47

Return on Asset (%) 1.01 1.04 0.99 1.00 1.02

Return on Equity (%) 23.55 22.91 22.40 22.35 23.13

Earning Per Share 17.83 4.69 5.41 13.05 15.85

Book Value [Including Revaluation Reserve]

84.04 80.13 101.25 80.13 101.25

Shareholding pattern

Govt. of India

51.19%

Mutual Funds3.17%

FI & Banks0.03%

Insurance Cos6.55%

FIIs16.87%

Indian Public16.34%

Corp. Bodies5.28%

NRIs & OCBs0.57%

As on 31st December, 2010

• Share Capital `286.82 cr

• No. of Shares 28.68 cr

• Net worth ` 2705.19 cr

• B. V. per share ` 101.25

•Return on Equity 23.13%(annualised)

• DENA is a Part of BSE 500, BSE

Midcap, BSE Sectoral [PSU]

indices, United Stock Exchange

• Listed on BSE and NSE & in

‘Future and Options’ segment

also.

Distribution channel

Particulars Mar’10 Sept’ 10 Dec’ 10

Branches 1223 1257 1284

Ext. Counters 13 13 13

ATMs 396 441 473

Bank has 19 pending

licenses as on

31.12.2010 & all the

new branches will be

opened by March 11.

Bank has opened 27 new branches during Q3 FY 2010-11.

Bank is planning to reach the figure of 650 ATMs by March 2011.

Building human assetSKILL BUILDING : FOR CUSTOMER SATISFACTION &

ENHANCED PRODUCTIVITY

Specialized Credit Training: Bank continues to provide two months’

intense specialised credit training to its staff to improve the credit

monitoring mechanism. Bank has already imparted training to its 188

officers and targeting to train 200 officers by the end of the current FY.

Recruitment of fresh talent –Bank has initiated recruitment of 464

specialised officers (including 112 specialised officers through campus

recruitment in the Area of Forex, Agriculture and Credit), 100

probationary officer and 250 clerks..

Customer centric grooming of frontline staff. Along with intensive two

months’ training programme on credit to create an effective cadre of credit

officer, Bank is also re-orienting the frontline staff for better customer

service through an in-house programme namely S.M.I.L.E.

(Smart, Motivated Intelligent for Leveraging the Emerging Market).

strategiesBank is on the path of transformation through effective use of technology.

Bank has already achieved 100% CBS, while constitution of centralized back

office function has relieved frontline staff for business development. Through

ATM sharing agreement bank has enabled itself with more than 60000 access

points. Bank has already opened 473 ATMs of its own and targeting to take

the total number of ATMs to 650 by March 2011.

Bank has opened 87 new branches in the calendar year 2010 while it has

opened 61 new branches in first 3 quarters of FY 2011. Further, Bank has 19

pending licenses and all the branches will be opened by the end of February

2011.

Lending to Agriculture, MSME and Corporate along with maintenance of

asset quality through robust credit monitoring mechanism will remain the

prime focus. The Bank has also increased number of MSME Branches from

68 to 91 to give thrust to MSME Sector.

Bank will continue to make intense effort of increasing the CASA through

targeting high value customers and by increasing the clientele base by 20%.

Financial inclusion planThe Bank has been allotted 776 villages with population above 2000 for

providing banking services through an outlet by March 2012.

The Bank has prepared its Financial Inclusion Plan (FIP) for 3 years i.e.

2010-11, 2011-12 and 2012-13. The Bank would strive to provide banking

services in these villages such as No Frills Accounts with Overdraft Facility,

Pure Saving Product, Entrepreneur Credit and Remittance product.

During the year 2010-11, the Bank will provide banking services in 300

villages with population above 2000. Moreover, the Bank has also plan to

cover additional 300 villages with population below 2000 by March 2011.

The Bank has opened 8.5 lakh of No Frills accounts. These No Frills

accounts are being extended with inbuilt Overdraft Facility.

The banking facilities will be provided in these villages by encouraging

Business Correspondents (BCs) through smart card based technology.

The Bank has signed an agreement with the vendor M/s TCS who shall

provide end to end solution to roll out the Financial Inclusion Plan.

Thank you