DCB Bank Limited

CONTENTS

Company Information 1

Chairman’s Statement 2

DCB BANK VISION Corporate Social Responsibility Initiatives 4

Our vision is to be
the most innovative Notice to Members 8
and responsive
neighbourhood
Bank in India serving Directors’ Report 30
entrepreneurs,
individuals and
businesses. Corporate Governance Report 58

Auditors’ Report 92
DCB BANK VALUES

100
• Treat Everyone with Dignity
– Respect Balance Sheet
• Do What is Right
– Ethical
• Be Open & Transparent – Profit & Loss Account 101
Fair

• Sense of Urgency, Passion &

Energy Cash Flow Statement 102
– Dynamic
• Go the Extra Mile, Find
Solutions – Stretch Schedules 104
• Improve Continuously

172
– Excellence
Basel III
• Play as a Team, To Win
– Teamwork
• Support the Society
– Contribute

b | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

COMPANY
INFORMATION
Board of Directors Senior Management Team Key Officials
Mr. Abhijit Bose Mr. Ajay Mathur
Mr. Farokh N. Subedar,
Chairman Chief Credit Officer Head – Collections & Commercial
Mr. Ajit Singh Vehicles

Mr. Murali M. Natrajan, Head Treasury, Financial Institutions Mr. Bappa Roy
MD & CEO Group and Investor Relation Product Head Retail Liability and
Mr. Gaurav Mehta Third Party Distribution
Mr. Amyn Jassani Head – Marketing, Public Relations Mr. Damodar Agarwal
(PR) & Corporate Communications Head – Strategic Initiatives and
Mr. Iqbal Khan Mr. J. K. Vishwanath Alternate Channels
Head-Corporate and SME Banking Mr. K. K. Pandey
Ms. Lakshmy Mr. Manoj Joshi Head – Channel Sales & Emerging
Chandrasekaran Markets
Chief Compliance Officer and Chief
(w.e.f. April 14, 2023) of Internal Vigilance Mr. Krishna Ramasankaran
Ms. Meghana Rao Head – Credit, Retail & Small &
Mr. Rafiq Somani Medium Enterprises (SME)
Head – Branch Operations
Mr. Murali Mohan Rao Manduva
Mr. Narendranath Mishra
Mr. Shabbir Merchant Chief Technology Officer
Head – Agri & Inclusive Banking
Mr. N. C. Kaushal
Mr. Somasundaram PR Mr. Praveen Kutty
Business Head – Digital Banking
Head – Retail Banking
Mr. Pankaj Sood
Mr. Tarun Balram Mr. Ravi Kumar Vadlamani
Head – Branch Banking-Retail
Head-Operations & Key Projects
Mr. Thiyagarajan Kumar Mr. Sukesh Bhowal
Mr. Sridhar Seshadri
Head – Mortgages & Gold Loans
Chief Risk Officer
Mr. Satish Gundewar
Chief Financial Officer
Joint Statutory auditors:
S. R. Batliboi & Associates, LLP,
Ms. T. P. Anuradha
Chartered Accountants
Chief Internal Auditor
(RegistrationNo.101049W / E300004)
Mr. Venkattesh R.
M/s Sundaram & Srinivasan,
Head IT, HR, Operations &
Chief Information Officer Chartered Accountants,
(ICAI Registration No. 004207S)
Company Secretary
Ms. Rubi Chaturvedi Registered Office
DCB Bank Limited
601 & 602, Peninsula Business Park,
6th Floor, Tower A, Senapati Bapat Marg,
Lower Parel, Mumbai-400013

Annual Report 2022-23 | 1

DCB Bank Limited

CHAIRMAN’S
STATEMENT
It is my privilege and pleasure to In all the neighborhood and world
address you, dear shareholders for turmoil, India is doing well. We
the first time as the Chairman of have successfully dealt with the
the Board of Directors of Covid-19 pandemic. Our economy is
DCB Bank Limited. growing and as per RBI, India’s GDP
growth is estimated at 7.2% for FY
It has been an eventful year for 2023. This is good news for India
the world which may have long and the banking business. In the
term implications for all of us. last few months, the Reserve Bank
The world population touched of India (RBI) has increased policy
8 billion (and according to the rates in response to inflationary
United Nations recent forecast conditions. This may have negative
India’s population crossed that of impact on the demand for loans in
China). Predominance of US dollar the coming months.
beginning to be questioned, the
turmoil in British politics leading to Difficult times requires Grit,
a person of Indian origin becoming Persistence and Staying the Course,
the Prime Minister of the United the theme for the Bank for FY 2023.
Kingdom, Pakistan and Sri Lanka
experienced economic and political The Bank has successfully dealt
stress, Russia-Ukraine hostility with huge challenges thrown at
leading to a humanitarian crisis and us by the Covid-19 disruptions.
global inflation and finally there This success would not have been
are unmistakable visible signs now possible without the pragmatic
that climate change is real and is approach and the support provided
impacting weather patterns which by the RBI and various arms of the
may ultimately result in economic Government of India. The self-
and civil disruptions. employed / MSME segments, the
core target market for the Bank
were worst hit by the Covid-19
pandemic. For DCB Bank, while
there was an increase in NPAs
and Restructured portfolio during
Covid-19 pandemic, with the help

Difficult times requires of strong recovery / collections,

the Bank has been able to reduce
NPAs, improve the business and
Grit, Persistence and deliver robust financial results.
What is more, the Bank has once
Staying the Course, again stepped-up growth by
investing in frontline headcount
the theme for the and new branches. We are investing
in people by steadily improving

Bank for FY 2023. our HR practices. Although the

investments have had an immediate
impact on the Cost / Income ratio,
we are confident that the steady

2 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

planned growth over the next few I am very enthused by the CSR thrust
quarters should help improve this ratio. areas of the Bank and the passion
and commitment shown by DCBians
The strong performance for the year is in volunteering for the CSR initiatives
also testimony to the quality portfolio undertaken by the Bank. Also, the
created through consistent execution central CSR theme is “sustainable
of strategy prior to the pandemic. livelihood” which is in sync with that of
The management team led by your our promoter AKFED.
Managing Director and the Board of
Directors have ably demonstrated While I have been closely associated
quality performance and delivered with large NBFCs and financial
robust growth trajectory. sector entities, the opportunity to be
associated with the banking sector
Deposits and Advances growth is has been quite exciting. The first few
picking up and we are aiming to double months have been full of learning. I am
the book in around 3 to 4 years. Given fascinated by the intricacies, nuances
our robust business model, profit and opportunities which the Bank
performance and capital efficiency, provides and I am looking forward
the Bank did not need to raise equity to more interactions both with our
capital during last few years. Our capital employees and with our customers.
continues to be strong and will support
our immediate growth ambition. I am delighted to interact with the
management team and employees of
In the initial throes of the Covid-19, the the Bank, several of whom are veterans
Bank identified 309 digital initiatives in the industry and display a very high
from a bottom-up approach across the level of dedication and oneness with the
length and breadth of the Bank, code Bank. I am sure the shareholders will join
named “Mission 309”. The successful roll me in thanking them for their hard work
out of these initial M309 digital agenda and dedication.
has spawned continuing initiatives in the
digital arena. I sincerely thank all the Directors for
their efforts in ensuring governance and
The opportunity in the country is huge growth. I share my good wishes to the
for a bank with our focus and strategy. Directors who retired in FY 2023 and
Customers are embracing digital have pleasure in welcoming the Directors
products and services at an increasing who have recently joined our Board.
pace. To differentiate and compete in
the industry, we intend to continue to I am eagerly looking forward to working
improve our customer service. The Bank with you to embark on a rewarding
already has a well-established customer journey for all of us in the coming years.
service philosophy namely Empathy,
Speed and Quality (ESQ). I intend to Farokh N Subedar
reinforce ESQ at every level in the Chairman
Bank and in every interaction with our
customers thereby further enhancing
our service levels.

Annual Report 2022-23 | 3

DCB Bank Limited

Corporate Social Responsibility Initiatives

Beach cleanup, Mumbai, Maharashtra

Ecosystem restoration through tree plantation for sustaina

Community awareness programme for the management of

Har Ghar Tiranga Campaign, Uttara Kannada, Karnataka
the village waste, Sonada, West Bengal

Kitchen garden for beekeeping, Chhindwara,

Huvinayaknahalli Lake clean up, Bengaluru, Karnataka Madhya Pradesh

4 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Beekeeping training programme for women Self Help Group

for sustainable livelihood, Uttara Kannada, Karnataka

Beekeeping training programme for women Self Help Group

able livelihood in South 24 Parganas, West Bengal for sustainable livelihood, Cuttack, Odisha

Habitat restoration, nature trail development for forest landscape through Assisted Natural Regeneration, Sanjay Gandhi
National Park, Mumbai, Maharashtra

Miyawaki urban forest, urban green space, increasing soil fertility,

Mumbai, Maharashtra

Annual Report 2022-23 | 5

DCB Bank Limited

Mangrove tree plantation and seaweed farming for coa

communities, Viluppuram & Ramanathapuram, Tamil N

Rain water harvesting to supply potable water

School students participating in tree plantation and maintenance of for school going tribal girl’s government hostel,
Miyawaki urban forest, Chennai, Tamil Nadu Panna, Madhya Pradesh

Water conservation for sustainable future, revival of traditional open well, Bengaluru, Karnataka

Daily collection of segregated household waste. Behaviour

Waterless urinals help save precious fresh water, change & solid waste management to prevent pollution
Gandhinagar, Gujarat of the Ganga river at Muni-Ki-Reti, Uttrakhand

6 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

astal
Nadu Tree plantation for greening urban space, Chennai, Tamil Nadu

Waste management through bio-digester, using the cattle waste to

provide biogas to rural homes. Reducing smoke pollution, reduction
of methane and dependency on firewood, Adilabad, Telangana

Water harvesting through Rainwater Recharge Wells, Bengaluru, Karnataka

Annual Report 2022-23 | 7

DCB Bank Limited

NOTICE TO MEMBERS
NOTICE is hereby given that the Twenty Eighth (28th) an annual basis and firm satisfying the eligibility
Annual General Meeting (“the AGM”) of the Members of norms each year in this regard, for the purpose of
DCB Bank Limited (“the Bank”) will be held on Thursday, audit including certifications, reporting on internal
June 22, 2023 at 2.30 p.m. (IST) via Video Conferencing financial controls of the Bank’s account at its head
(“VC”) or Other Audio Visual Means (“OAVM”) to office, branches and other offices, with power
transact the following: to the Board, including relevant Committee(s)
thereof, to alter and vary the terms and conditions
Ordinary Business: of appointment, remuneration, reimbursement of
1. To receive, consider and adopt the audited financial expenses etc., including by reason of necessity on
statements of the Bank for the financial year ended account of conditions as may be stipulated by the
March 31, 2023 together with the Reports of the RBI and / or any other authority, in such manner and
Board of Directors and Auditors thereon. to such extent as may be mutually agreed between
the Bank and the Joint Statutory Auditors and as
2. To declare dividend of `1.25 per Equity Shares may be further approved by the Board from time to
of ` 10/- each, for the Financial Year ended time.
March 31, 2023.
RESOLVED FURTHER THAT subject to applicable
3. To appoint a director in place of Mr. Iqbal Khan laws and regulations including the relevant
(DIN-07870063), who retires by rotation and being guidelines and circulars of the RBI (as may be
eligible, offers himself for re-appointment. amended, restated, modified, replaced from time to
4. To appoint Joint Statutory Auditors and to fix their time), M/s. B S R & Co LLP, Chartered Accountants
overall audit fees and in this regard, to consider and, (ICAI Registration No. 101248W/W100022) and M/s.
if thought fit, to pass, the following Resolution as an Sundaram & Srinivasan, Chartered Accountants,
Ordinary Resolution (ICAI Registration No. 004207S), who were
already appointed as the Joint Statutory Auditors
“RESOLVED THAT pursuant to the provisions of of the Bank at the 26th Annual General Meeting
Sections 139, 141, 142 and other applicable provisions of the Bank held on August 13, 2021, shall act
of the Companies Act, 2013 (“the Act”) read with the as the Joint Statutory Auditors of the Bank for
rules made thereunder and the Banking Regulation the remainder of the term of M/s. Sundaram &
Act, 1949, relevant rules, circulars and guidelines Srinivasan, Chartered Accountants, at overall audit
issued by the Reserve Bank of India from time to time fees of Rs. 1.65 crore (Rupees One Crore and Sixty
and such other regulatory authorities, as may be Five Lakhs Only) per annum for FY 2023-24, to be
applicable (including any statutory amendment(s), allocated by the Bank between M/s. B S R & Co
modification(s), variations(s) or re-enactment(s) LLP, Chartered Accountants and M/s. Sundaram
thereof for the time being in force) and as approved & Srinivasan, Chartered Accountants as the Joint
by Reserve Bank of India vide. Letter No Ref CO.DOS. Statutory Auditors, as may be mutually agreed
RPD.No. S995/08.37.005/2023-24 dated May 11, between the Bank and the said Joint Statutory
2023, M/s. B S R & Co LLP, Chartered Accountants Auditors, depending upon their respective scope of
(ICAI Firm Registration no.101248W/W100022), who work, and additionally out of pocket expenses and
have offered themselves for appointment and have taxes as applicable and that M/s. B S R & Co LLP,
confirmed their eligibility to be appointed as Joint Chartered Accountants shall thereafter act as Joint
Statutory Auditors of the Bank in terms of Section Statutory Auditors of the Bank with such other new
141 of the Companies Act, 2013 and applicable rules Joint Statutory Auditor(s) who will be appointed
thereunder and the guidelines issued by RBI dated by the Bank subject to prior permission of RBI and
April 27, 2021, be and are hereby appointed as one approval of the Members of the Bank from FY 2024-
of the Joint Statutory Auditors of the Bank for the 25 onwards.
period commencing from the conclusion of this
28th Annual General meeting until the conclusion RESOLVED FURTHER THAT for the purpose of
of the 31st Annual General Meeting of the Bank for a giving effect to the above Resolution, the Board
continuous period of three (3) years (from FY 2023- (including the Audit Committee of the Board or
24 to FY 2025-26) subject to the RBI approval on any other person(s) authorised by the Board or

8 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

the Audit Committee in this regard), be and is deemed to include any Committee of the Board or
hereby authorised on behalf of the Bank to do all any other persons to whom powers are delegated
such acts, deeds, matters and things as it may, in by the Board as permitted under the Companies
its absolute discretion, deem necessary or desirable Act, 2013) for borrowing/raising of funds, from time
for such purpose and with power on behalf of the to time, in Indian/foreign currency, by issue of debt
Bank to settle all questions, difficulties or doubts securities including but not limited to Unsecured
that may arise in this regard for implementation Redeemable Taxable Non-Convertible Subordinated
of the Resolution including but not limited to Basel III Compliant Tier II Bonds / Non-Convertible
determination of roles and responsibilities/ scope Debentures (including bonds forming part of Tier
of work of the respective Joint Statutory Auditors, I Capital/Tier II Capital in accordance with and
negotiating, finalising, amending, signing, delivering subject to the terms and conditions specified in the
and executing the terms of appointment including Basel III Capital Regulations prescribed by the RBI),
any contracts or documents in this regard, without long terms infrastructure bonds or such other bonds
being required to seek any further consent or as may be permitted by the RBI from time to time
approval of the Members of the Bank.” in domestic and/ or overseas market, on a private
placement basis and/ or for making offers and/ or
Special Business:
invitations therefor and/ or issue(s)/issuances
5. Raising of funds by issue of bonds/ debentures/ thereof, on a private placement basis, for a period
securities on private placement basis. of one year from the date hereof, in one or more
tranches and/ or series and under one or more
To consider and if thought fit, to pass the following shelf disclosure documents and/ or one or more
Resolution as Special Resolution letters of offer and on such terms and conditions for
each series/ tranches including the price, coupon,
“RESOLVED THAT pursuant to Section 42 and
premium, discount, tenor etc. as deemed fit by the
other applicable provisions, if any, of the Companies
Board, as per the structure and within the limits
Act, 2013, as amended from time to time read
permitted by the RBI, of an amount not exceeding
with the Companies (Prospectus and Allotment
Rs. 500 crore (Rupees Five Hundred crore) over
of Securities) Rules, 2014, the Companies (Share
and above the outstanding debt securities issued
Capital and Debentures) Rules, 2014 and other
by the Bank and in aggregate for additional Tier I
relevant rules made under the act, read with the
and Tier II Capital within the overall borrowing limits
relevant circulars/ notification issued by the Ministry
of the Bank, as approved by the Members from time
of Corporate Affairs from time to time, Securities
to time.
and Exchange Board of India (“SEBI”) (Issue and
Listing of Non-Convertible Securities) Regulations, RESOLVED FURTHER THAT the Board of Directors
2021 (“SEBI ILNCS”), SEBI (Listing Obligations of the Bank or any Committee of the Board or such
and Disclosure Requirements) Regulations, 2015 other persons as may be authorized by the Board
and other applicable rules, regulations, guidelines, or Committee of the Board, be and are hereby
directions and circulars issued by the SEBI from authorized to negotiate, modify and finalize the
time to time, applicable provisions of the Banking terms and conditions of the debt securities and sign
Regulation Act, 1949, the Reserve Bank of India the relevant documents/ agreements in connection
Act, 1934, Foreign Exchange Management Act, with the private placement of the debt securities,
1999 (including, any statutory amendment(s) or including without limitation, the private placement
modification(s) or re-enactment(s) thereof, for the offer letter (along with the application form),
time being in force), the rules, regulations, circulars, information memorandum, disclosure documents,
notifications, directions and guidelines issued by debenture subscription agreement, debenture trust
the Reserve Bank of India (“RBI”) from time to deed and any other documents as may be required,
time and all other relevant provisions of applicable in connection with the offering(s), issuance(s) and/
laws, the provisions of the Memorandum and or allotment(s) on a private placement of debt
Articles of Association of the Bank and subject to securities by the Bank and to further delegate the
such other approval(s), consent(s), permission(s) above powers to any Committee of Directors or
and sanction(s) as may be necessary from the any officers of the Bank to act on their behalf as
concerned statutory authority(ies), the approval of they may deem fit and to do all such other acts and
the Members of the Bank be and is hereby accorded things and to execute all such documents as may be
to the Board of Directors of the Bank (hereinafter necessary for giving effect to this Resolution”.
referred to as “Board” and which term shall be

Annual Report 2022-23 | 9

DCB Bank Limited

6. Issue of Equity Shares / other securities convertible under Chapter VI of ICDR Regulations, such
into Equity Shares (“Securities”) through Qualified number of Equity Shares to Qualified Institutional
Institutions Placement(QIP) Buyers as defined under Chapter VI of ICDR
Regulations, whether they be holders of the
To consider, and if thought fit, to pass, the following
shares of the Bank or not (collectively called “the
Resolution as a Special Resolution
Investors”) as may be decided by the Board in
“RESOLVED THAT pursuant to sections 42 and their discretion and permitted under the applicable
62(1)(c) and other applicable provisions, if any, laws and regulations, for an aggregate amount not
of the of the Companies Act, 2013 (“the Act”) exceeding ` 500 crore (Rupees Five Hundred Crore
and the Companies (Prospectus and Allotment only), inclusive of such premium as may be fixed
of Securities) Rules, 2014, as amended, the on the Equity Shares at such time or times, at such
Companies (Share Capital and Debentures) price or prices, at a discount or premium to market
Rules, 2014 and other applicable rules made under price or prices in such manner and on such terms
the Act, including any statutory modification(s), and conditions, as may be deemed appropriate by
amendment(s) or re­-enactment(s) thereof for the the Board at its absolute discretion considering the
time being in force, the applicable provisions of the prevailing market conditions and other relevant
Banking Regulation Act, 1949, the Securities and factors and wherever necessary in consultation
Exchange Board of India (SEBI) (Issue of Capital with lead manager(s) and/ or underwriter(s) and/
and Disclosure Requirements) Regulations, 2018 or other advisor(s) as the Board may in its absolute
(“ICDR Regulation”), SEBI (Listing Obligations discretion deem fit or appropriate in accordance
and Disclosure Requirements) Regulations, 2015 with all applicable laws, rules and regulations for the
(“SEBI Listing Regulations”), the Foreign Exchange time being in force in this regard (“the Issue”).
Management Act, 1999 (“FEMA”), Foreign Exchange
RESOLVED FURTHER THAT the Equity Shares to
Management (Transfer or Issue of Security by a
be offered, issued and allotted in pursuance of this
Person Resident outside India) Regulations, 2017,
Resolution shall be subject to the provisions of the
as amended from time to time and in accordance
Memorandum and Articles of Association of the
with applicable rules, regulations, guidelines,
Bank and the same shall rank pari passu with the
circulars, notifications and clarifications issued by
existing Equity Shares of the Bank;
Government of India (“GOI”)/ Reserve Bank of India
(“RBI”)/ SEBI/ Ministry of Corporate Affairs (MCA)/ RESOLVED FURTHER THAT the Equity Shares to
Stock Exchanges where the Equity Shares of the be issued shall be listed with the stock exchanges,
DCB Bank Limited (“the Bank”) are listed and/ or where the existing Equity Shares of the Bank are
any other competent authorities and subject to listed;
(a) any other applicable laws, rules and regulations
(including any amendment thereto or re- RESOLVED FURTHER THAT the relevant date for
enactment thereof for the time being in force), determination of price of Equity Shares to be issued
(b) the enabling provisions of the Bank’s by way of the proposed issues shall be the date of
Memorandum and Articles of Association, (c) any the meeting at which the Board decides to open the
approval, consent, permission or sanction of SEBI proposed issue of Equity Shares, or such other date
and/ or RBI and/ or Ministry of Finance (Department as may be permitted under ICDR Regulations from
of Economic Affairs), as applicable or relevant time to time;
Ministry approving foreign investment, as applicable RESOLVED FURTHER THAT the pricing shall be
and required, approvals, consents, permissions or determined in compliance with principles and
sanctions of other concerned authorities, within or provisions set out in the Regulation 176 of Chapter
outside India, and (d) such terms, conditions and VI of the ICDR Regulations and the Board may offer
modifications as may be prescribed by any of them a discount of not more than 5% (five per cent) on the
while granting such approvals, consent permissions price calculated for the QIP or such other discount
or sanctions and which may be agreed to by the as may be permitted under said ICDR Regulations;
Board of Directors of the Bank (hereinafter referred
to as “the Board” which term shall include any RESOLVED FURTHER THAT the allotment of Equity
Committee constituted by the Board), consent of Shares shall be completed within a period of 365
the Bank be and is hereby granted to the Board to days from the date of this Resolution approving
create, offer, issue and allot, in one or more tranches, the proposed issue or such other time as may be
by way of a Qualified Institutions Placement (QIP) permitted under ICDR Regulations from time to time.

10 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

RESOLVED FURTHER THAT for the purpose of to time and any other applicable Laws, Rules and
giving effect to the above Resolution, the Board Acts including any amendments, modifications,
or its appointed delegates/ committees be and is variations or re-enactments thereof and pursuant
hereby authorized to do all such acts, deeds, matters to the recommendation of the Nomination and
and things including but not limited to finalization Remuneration Committee (“NRC”) and approval of
and approval for the draft as well as the final offer the Board of Directors of the Bank (“the Board”),
document(s), determining the form, proportion and the appointment of Ms. Lakshmy Chandrasekaran,
manner of the issue, including the class of investors in respect of whom the Bank has received a notice
to whom the Equity Shares are to be issued and in writing under section 160 of the Act from a
allotted, number of Equity Shares to be allotted, member proposing her candidature for the office
issue price, premium/ discount amount on issue, if of Director, be and is hereby approved by the
any, execution of various transaction documents, Members as an Independent Director of the Bank,
fixing record date, listings on one or more Stock not liable to retire by rotation, having specialized
Exchanges in India, appointing intermediaries, experience in the field of Accountancy, Finance
entering into arrangements for managing, and Risk Management to hold office for a period of
underwriting, marketing, listing and trading, to issue three (3) years from April 14, 2023 to April 13, 2026
offer documents and to sign all deeds, documents (both days inclusive).
and writings and to pay any fees, commissions,
RESOLVED FURTHER THAT Ms. Lakshmy
remuneration, expenses relating thereto and for
Chandrasekaran shall be paid sitting fees and
other related matters and with power on behalf of
reimbursement of expenses for attending the
the Bank as it may in its absolute discretion deem fit
meetings of the Board and Committee, as applicable.
and to settle all questions, difficulties or doubts that
may arise in regard to the Issue, offer or allotment of RESOLVED FURTHER THAT the Board of
Equity Shares and utilization of the issue proceeds Directors of the Bank (which term shall include any
as it may in its absolute discretion deem fit without Committee thereof) be and is hereby authorized
being required to seek any further consent or to execute all such documents, instruments and
approval of the Members or otherwise to the end writings, as deemed necessary, file requisite
and intent that the Members shall be deemed to forms or applications with statutory/ regulatory
have given their approval thereto expressly by the authorities, with the power to settle all questions,
authority of this Resolution. difficulties or doubts that may arise in this regard,
as it may in its sole and absolute discretion deem fit
RESOLVED FURTHER THAT the Board be and is
and to do all such acts, deeds, matters and things as
hereby authorised to further delegate all or any of
may be considered necessary and appropriate and
the powers in aforesaid matters to the officials of
to delegate all or any of its powers herein conferred
the Bank, in such manners as the Board may in its
to any Director(s)/ Officer(s) of the Bank, to give
absolute discretion deem fit.”
effect to this Resolution.”
7. To approve the appointment of Ms. Lakshmy
8. To take note of the appointment of Mr. Farokh
Chandrasekaran (DIN:00240466) as an
Nariman Subedar (DIN: 00028428) as Non-
Independent Director of the Bank
Executive Part-Time Chairman of the Bank and to
To consider and, if thought fit, to pass, the following approve payment of remuneration.
Resolution as a Special Resolution
To consider and if thought fit, to pass, the following
“RESOLVED THAT pursuant to the provisions of Resolution as an Special Resolution
Sections 149, 150, 152 read with schedule IV and such
“RESOLVED THAT pursuant to the applicable
other applicable provisions of the Companies Act,
provisions of the Companies Act, 2013 (“the
2013 (“the Act”) the Companies (Appointment and
Act”) and the rules made thereunder, Section 10B
Qualification of Directors) Rules, 2014, Regulation
and other applicable provisions of the Banking
17 of the Securities and Exchange Board of India
Regulation Act, 1949 and the rules, circulars and
(Listing Obligations and Disclosure Requirements)
guidelines issued by the Reserve Bank of India
Regulations, 2015 (“SEBI Listing Regulations”),
from time to time and Regulation 17 of Securities
Section 10A(2)(a) and such other applicable
and Exchange Board of India (Listing Obligations
provisions of the Banking Regulation Act, 1949 and
and Disclosure Requirements) Regulations, 2015
relevant circulars/ directions/ guidelines issued
(SEBI Listing Regulations) and other applicable
by the Reserve Bank of India (“RBI”) from time
provisions of the SEBI Listing Regulations and

Annual Report 2022-23 | 11

DCB Bank Limited

Articles of Association of the Bank, and in terms read with the relevant rules, guidelines and circulars
of the approval granted by the Reserve Bank of issued by the Reserve Bank of India (the “RBI”)
India (‘RBI’) vide its letter dated January 31, 2023, from time to time and any other applicable laws/
the appointment of Mr. Farokh Nariman Subedar as regulations (including any statutory amendment(s),
Non-Executive Part-Time Chairman of the Bank for modification(s), variation(s) or re-enactment(s)
a period of three (3) years with effect from January thereto, for the time being in force), the provisions
31, 2023 be and is hereby noted by the Members of of the Articles of Association of DCB Bank Limited
the Bank. (“the Bank”), and subject to such approvals as
may be necessary/ required, the approval of the
RESOLVED FURTHER THAT pursuant to the
Members of the Bank be and is hereby accorded for
applicable provisions of the Banking Regulation
alteration of the Articles of Association of the Bank,
Act, 1949, the Companies Act, 2013 along with
by inserting the following clause (5) under Article
rules made thereunder, (including any statutory
112 of the Bank:
modification(s) or re-enactment(s) thereof for
the time being in force), Regulation 17 of the SEBI (5) The Bank shall, in accordance with Appointment
Listing Regulation or other applicable provisions the requirement of prevailing applicable of Director
of SEBI Listing Regulations, the rules, circulars, laws/ statutes in force and the trust nominated
notifications and guidelines issued by the RBI, deed entered into with the Debenture by Debenture
Articles of Association of the Bank and pursuant Trustees in connection with the issue of Trustees.
to the recommendation made by the Nomination Debentures/ Bonds, appoint a person
& Remuneration Committee, approval of the Board nominated by the Debenture Trustees
of Directors of the Bank and approval of RBI dated as a Director on the Board of the Bank
January 31, 2023, approval of the Members of the (to be referred as “Debenture Director”)
Bank be and is hereby accorded for the payment within the timelines permitted by
of following remuneration to Mr. Farokh Nariman applicable law.
Subedar as Non-Executive Part- Time Chairman
of the Bank from the date of the RBI approval i.e., RESOLVED FURTHER THAT the Board of Directors
January 31, 2023. of the Bank (which expression shall also include a
Committee thereof) be and is hereby authorized
- Fixed honorarium of ` 24,00,000/- p.a.
to do all such acts, deeds, matters and things as
- sitting fees for attending Board and Committee may be necessary and incidental to give effect to
meetings the aforesaid Resolution and delegate the aforesaid
powers to any Director or officer of the Bank as
- Reimbursement of actual business related may be deemed necessary, proper, expedient or
expenses and 1 club membership incidental for the purpose of giving effect to this
RESOLVED FURTHER THAT the Board (which Resolution.”
term shall include any Committee thereof), be and Place: Mumbai  By Order of the Board of Directors
is hereby authorized to do all such acts, deeds, Date: May 5, 2023 DCB Bank Limited
matters and things and to execute any agreements,
documents, instruments and writings as may Rubi Chaturvedi
be required, with power to settle all questions, Company Secretary
difficulties or doubts that may arise in regard to
the said appointment as it may in its sole discretion Registered Office:
deem fit and to delegate all or any of its powers CIN:L99999MH1995PLC089008
conferred herein to any Director(s) and/ or officer(s) Peninsula Business Park,
of the Bank to give effect to this Resolution.” 6th Floor, 601 & 602, Tower A,
Senapati Bapat Marg,
9. Alteration of Article of Association of the Bank
Lower Parel, Mumbai 400 013.
To consider, and if thought fit, to pass the following Website: www.dcbbank.com
Resolution, as a Special Resolution e-mail: investorgrievance@dcbbank.com
“RESOLVED THAT pursuant to Section 14 of the
NOTES:
Companies Act, 2013 and rules made thereunder and
any other applicable provisions of the Act, relevant 1) Pursuant to the General Circular No. 14/2020
provisions of the Banking Regulation, Act, 1949, dated April 8, 2020,.17/2020 dated April 13, 2020,

12 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

20/2020 dated May 05, 2020, 02/2021 dated the AGM through VC/OAVM and cast their votes
January 13, 2021, 11/2021 dated January 15, 2021, through e-Voting.
19/2021 dated December 8, 2021, 21/2021 dated
4) In line with the MCA Circulars No. 17/2020 dated April
December 14, 2021, 2/2022 dated May 5, 2022
13, 2020 and SEBI Circular dated May 12, 2020, Notice
and 10/2022 dated December 28, 2022 issued
of the 28th AGM along with the Annual Report 2022-
by the Ministry of Corporate Affairs, (including
23 is being sent through electronic mode to those
any statutory amendment(s), modification(s),
Members whose e-mail addresses are registered with
variation(s) or re-enactment(s) thereto, for the time
the Bank/ Depositories. Members may note that the
being in force, and as amended, from time to time)
Notice and Annual Report for FY 2022-23 will also be
(collectively referred to as “MCA Circulars”) holding
available on the Bank’s website www.dcbbank.com,
of the Annual General Meetings (AGM) or other
websites of the Stock Exchanges i.e. BSE Limited and
general meetings of the companies are permitted
National Stock Exchange of India Limited at www.
through video conferencing (VC) or other audio
bseindia.com and www.nseindia.com respectively,
visual means (OAVM) till September 30, 2023,
and on the website of CDSL(agency for providing
without the physical presence of the Members
the Remote e-Voting facility and e-Voting system
at a common venue. In compliance with the
during the AGM) i.e. www.evotingindia.com.
provisions of the Companies Act, 2013 (“Act”), SEBI
(Listing Obligations and Disclosure Requirements) 5) An Explanatory Statement required under Section
Regulations, 2015 (“SEBI Listing Regulations”) and 102(1) of the Companies Act, 2013 in respect of
MCA Circulars, the 28th AGM (the AGM) of the the business at Item Nos. 4 to 9 of the Notice is
Bank is being held through VC / OAVM). Hence, annexed hereto.
Members can attend and participate in the ensuing
6) The relevant details, pursuant to Regulations 26(4)
AGM through VC/OAVM only.
and 36(3) of the SEBI Listing Regulations and
2) The Members can join the AGM in the VC/OAVM Secretarial Standard on general meetings issued
mode 15 minutes before and after the scheduled by the Institute of Company Secretaries of India
time of the commencement of the Meeting by (ICSI), in respect of Director seeking appointment/
following the procedure mentioned in the Notice. re-appointment in this AGM is annexed.
The facility of participation at the AGM through
7) The Bank has fixed, Thursday, June 15, 2023 as
VC/OAVM will be made available to at least 1000
the Record Date [Cut-off Date] for the purpose
Members on first come first served basis. This will
of the 28th AGM and reckoning entitlement for
not include large Members (Members holding 2%
voting on the Resolutions contained in this Notice
or more shareholding), Promoters, Institutional
and entitlement for Dividend, if approved by the
Investors, Directors, Key Managerial Personnel, the
Members. The remote e-Voting /voting rights of the
Chairpersons of the Audit Committee, Nomination
Members/beneficial owners shall be reckoned on
and Remuneration Committee and Stakeholders
the Equity Shares held by them as on June 15, 2023
Relationship Committee, Auditors etc. who are
(the Cut-off Date) only.
allowed to attend the AGM without restriction on
account of first come first served basis. 7A) All documents referred to in the accompanying
Notice, Explanatory Statement, and the terms and
3) The attendance of the Members attending the AGM
conditions of appointment of Directors shall be
through VC/OAVM will be counted for the purpose
provided to Members on requests sent through
of ascertaining the quorum under Section 103 of the
e-mail to investorgrievance@dcbbank.com for
Companies Act, 2013.
inspection by Members of the Bank from the date
Pursuant to MCA Circular No. 14/2020 dated April of circulation of this Notice up to the date of AGM,
08, 2020, SEBI Circular dated May 12, 2020 and i.e. Thursday, June 22, 2023.
January 15, 2021, the facility to appoint proxy to
The Register of Directors and Key Managerial
attend AGM and cast vote for the Members is not
Personnel and their Shareholdings, other Statutory
available for this AGM and therefore the Proxy Form
Registers prescribed under the Companies Act,
and Attendance Slip are not annexed to this Notice.
2013 will be available electronically for inspection at
However, in pursuance of Section 112 and Section
the Registered Office of the Bank from the date of
113 of the Companies Act, 2013, representatives of
circulation of this Notice up to the date of the AGM,
the Members such as the President of India or the
i.e. Thursday, June 22, 2023.
Governor of a State or body corporate can attend

Annual Report 2022-23 | 13

DCB Bank Limited

The Certificate from Secretarial Auditor of the Bank 2. In case the Bank is unable to make payment of
certifying that the ESOP Scheme of the Bank is Dividend to any Shareholder by the electronic
in compliance with the Securities and Exchange mode due to non-availability of the details of
Board of India (Share Based Employee Benefits and the Bank Account, the Bank shall dispatch
Sweat Equity) Regulations, 2021 will be available Dividend Warrant to such Shareholders by
electronically for inspection on the date of the Post.
AGM, i.e. Thursday, June 22, 2023. Members seeking
3. Members may note that as per the Income Tax
to inspect such documents can send an e-mail to
Act, 1961 (“IT Act”), as amended by the Finance
investorgrievance@dcbbank.com
Act, 2020, dividends paid or distributed by
8) Dividend Related Information the Bank shall be taxable in the hands of the
Shareholders and the Bank shall be required to
1. Dividend as recommended by the Board of
deduct tax at source (TDS) at the prescribed
Directors, if approved at the AGM, shall be paid
rates from the Dividend to be paid to
on or before Friday, July 21, 2023 to the eligible
Shareholders, subject to approval of Dividend
Shareholders.
by the Shareholders in this AGM. The TDS
The Shareholders may kindly note that the rate would vary depending on the residential
Bank has fixed, Thursday, June 15, 2023 as the status of the shareholder and the documents
Record Date for the purposes of Dividend, and submitted by them and accepted by the Bank.
all the Shareholders whose name appears in In order to enable the Bank to determine the
the Register of Members as at the Record Date appropriate TDS rate as applicable, Members
would be entitled to Dividend for the Financial are requested to submit relevant documents,
Year 2022-23. as specified in the below paragraphs, in
accordance with the provisions of the IT Act.
Members holding shares in dematerialized form
are requested to intimate before Thursday, a. For Resident Shareholders, TDS is required to
June 15, 2023 any change in their address or be deducted at the rate of 10% under Section
bank account details (including 9 digits MICR 194 of the Income Tax Act, 1961 on the amount
No. 11 digit IFSC Code No. and Core Banking of Dividend declared and paid by the Bank
Account No.) to their respective Depository during FY 2023-24, provided valid PAN is
Participants with whom they are maintaining registered by the Members. If the valid PAN
their demat accounts. is not registered, the TDS is required to be
deducted at the rate of 20% under Section
Members holding shares in physical form are
206AA of the Income Tax Act, 1961. However,
requested to send immediately to the R&T
no tax shall be deducted on the dividends
Agent / Bank a communication duly signed by
paid to resident individuals if aggregate
the first holder intimating about the change of
Dividend distributed or likely to be distributed
address, along with the self- attested copy of
during the FY 2023-24 does not exceed
their PAN Card(s), unsigned orginal cancelled
` 5,000 (Rupees Five thousand only). In cases
cheque leaf of an active bank account as
where the Members provide valid Form 15G/
maintained, and copies of the supporting
Form 15H no TDS shall be deducted.
documents evidencing the change in address.
Communication details of R&T agent are as b. Instructions regarding TDS for all Shareholders:
under:
The aforementioned forms for tax exemption
Link Intime India Pvt. Ltd, can be downloaded from Link Intime’s website.
C-101, 247 Park, L.B.S. Marg, The URL for the same is as under:
Vikhroli West, Mumbai – 400083.
https://www.linkintime.co.in/client-downloads.
Tel. No.: 022 49186270
html - On this page select the General tab.
Fax No.: 022 49186060
All the forms are available in under the head
E-mail: rnt.helpdesk@linkintime.co.in
“Form 15G/15H/10F”
Website: www.linkintime.co.in
The aforementioned documents (duly
completed and signed) are required to be
uploaded on the url mentioned below:

14 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

h t t p s : //we b . l i n k i n t i m e .co. i n /f o r m s re g / i) Insurance companies: Declaration by

submission-of-form-15g-15h.html On this page shareholder qualifying as Insurer as per
the user shall be prompted to select / share the section 2(7A) of the Insurance Act, 1938
following information to register their request. along with self-attested copy of PAN Card;

a. Select the company (Dropdown) ii) Mutual Funds: Declaration by Mutual Fund
shareholder eligible for exemption u/s
b. Folio / DP-Client ID
10(23D) of the Income Tax Act, 1961 along
c. PAN with self-attested copies of registration
documents and PAN Card;
d. Financial year (Dropdown)
iii) Alternative Investment Fund (AIF)
e. Form selection
established in India: Declaration that the
f. Document attachment – 1 (PAN) shareholder is eligible for exemption under
Section 10(23FBA) of the Act and that they
g. Document attachment – 2 (Forms)
are established as Category I or Category
h. Document attachment – 3 (Any other II AIF under the SEBI regulations. Copy of
supporting document) self-attested registration documents and
PAN Card should be provided.
Please note that the upload of documents
(duly completed and signed) on the website iv) New Pension System Trust: Declaration
of Link Intime India Private Ltd should be done along with self-attested copy of
on or before June 15, 2023 in order to enable documentary evidence supporting the
the Bank to determine and deduct appropriate exemption and self-attested copy of PAN
TDS / Withholding Tax. Incomplete and/or Card.
unsigned forms and declarations will not be
v) Other Shareholders: Declaration along
considered by the Bank. No communication
with self-attested copy of documentary
on the tax determination/ deduction shall be
evidence supporting the exemption and
considered after June 15, 2023, 6:00 p.m. (IST).
self-attested copy of PAN Card.
Shareholders may note that in case the tax
vi) Shareholders who have provided a valid
on said interim/final Dividend is deducted
certificate issued u/s 197 of the Act
at a higher rate in absence of receipt of the
for lower / Nil Rate of deduction or an
aforementioned details/documents, option is
exemption certificate issued by the Income
available to shareholder to file the return of
Tax Authorities along with Declaration.
income as per the Income Tax Act, 1961 and
claim an appropriate refund, if eligible. vii) For Non-Resident Shareholders, (including
Foreign Portfolio Investors) Tax would be
All communications/ queries in this respect
withheld in accordance with the provisions
should be addressed to our RTA, Link Intime
of Section 195 and 196D of the Income Tax
India Private Limited to its e-mail address:- rnt.
Act, 1961 at applicable rates in force. As per
helpdesk@linkintime.co.in
the relevant provisions of the Act, the tax
Members are requested to link their Aadhaar shall be withheld @ 20% (plus applicable
Number with PAN as required under Section surcharge and cess) on the amount of
139AA(2) of the Income Tax Act, 1961 read Dividend payable. However, as per Section 90
with Rule 114AAA of the Income Tax Rules, of the Act, a Non-Resident Shareholder has
1962 mandatorily by June 30, 2023. If any PAN the option to be governed by the provisions
is not linked with Aadhaar by June 30, 2023 of the Double Tax Avoidance Agreement
then such PAN shall become inoperative PAN (“DTAA”) between India and the Country of
and TDS could be deducted at higher rates Tax Residence of the shareholder, if they are
u/s 206AA of the Act. more beneficial to the shareholder. For this
purpose, i.e. to avail the Tax Treaty benefits,
c. Nil / lower tax shall be deducted on the
Non-Resident Shareholders shall have to
Dividend payable to following Resident
furnish the following:
Shareholders on submission of self-declaration
as listed below:

Annual Report 2022-23 | 15

DCB Bank Limited

a. Self-attested copy of PAN Card, if Section 206AB of the Act:

any, allotted by the Indian Income Tax
Rate of TDS @10% under Section 194 of the Act is
Authorities;
subject to provisions of Section 206AB of Act (effective
b. Self-attested copy of Tax Residency from July 01, 2021) which introduces special provisions
Certificate (“TRC”) obtained from for TDS in respect of non-filers of Income-Tax Return.
the Tax Authorities of the country of As provided in Section 206AB, Tax is required to be
which the shareholder is resident; deducted at higher of following rates in case of payments
to specified persons:
c. Self-attested copy of Form No. 10F
furnished on the Income Tax portal - at twice the rate specified in the relevant provision of
or self-declaration (if applicable) in the Act; or
Form No. 10F as per the applicable
- at twice the rate or rates in force; or
income tax provisions;
- at the rate of 5%.
d. Self-Declaration by the non-resident
shareholder of meeting Treaty Where Sections 206AA and 206AB are applicable, i.e.,
eligibility requirement and satisfying the specified person has not submitted the PAN as well
beneficial ownership requirement. as not filed the return; tax shall be deducted at the higher
(Non-resident having Permanent of the two rates prescribed in these two Sections.
Establishment in India would need
The term ‘specified person’ is defined in sub section (3)
to comply with provisions of section
of Section 206AB who satisfies the following conditions:
206AB of the IT Act);
• A person who has not filed the Income Tax return
e. In case of Foreign Institutional
for the assessment year relevant to the previous year
Investors and Foreign Portfolio
immediately preceding the financial year in which tax
Investors, self-attested copy of SEBI
is required to be deducted for which the time limit for
Registration Certificate;
furnishing the Income Tax Return under sub section
f. In case of Shareholder being tax (1) of section 139 has expired ; and
resident of Singapore, please furnish
• The aggregate of TDS and TCS in his case is ` 50,000
the letter issued by the Competent
or more in the said previous year.
Authority or any other evidences
demonstrating the non-applicability of The Non-Resident who does not have a permanent
Article 24 - Limitation of Relief under establishment is excluded from the scope of ‘specified
India-Singapore Double Taxation person’.
Avoidance Agreement (DTAA);
Members are requested to inform in advance and before
viii) Please note that the Bank is not obligated to cut-off date i.e., June 15, 2023 if they are covered under
apply the beneficial DTAA rates at the time the definition of ‘specified person’ as provided in section
of tax deduction / withholding on Dividend 206AB of the IT Act. The Bank reserves the right to
amounts. Application of beneficial DTAA recover any demand raised subsequently on the Bank for
Rate shall depend upon the completeness not informing the Bank, or providing wrong information
and satisfactory review by the Bank, of the about applicability of Section 206AB..
documents submitted by non-Resident
Updating of PAN, e-mail address and other details:
shareholder.
Shareholders holding shares in dematerialized mode,
ix) Accordingly, in order to enable the Bank
are requested to update their records such as Tax
to determine the appropriate TDS /
Residential Status, Permanent Account Number (PAN),
withholding tax rate applicable, we request
registered e-mail addresses, mobile numbers and other
the Members to provide these details and
details with their relevant Depositories through their
documents as mentioned above before
Depository Participants. Shareholders holding shares
June 15, 2023.
in physical mode are requested to furnish details to the
x) The Bank shall arrange to e-mail the soft Bank’s Registrar and Share Transfer Agent (RTA). The
copy of TDS certificate within the prescribed Bank is obligated to deduct tax at source (TDS) based
timeline under the Income Tax provisions at on the records available with RTA and no request will be
the registered e-mail ID of Members. entertained for revision of TDS return

16 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Updating of Bank Account details: details by holders of securities and has extended
the timeline till September 30, 2023. Effective from
Members are also requested to submit / update their
October 1, 2023. In absence of these details updated
bank account details with their Depository Participant
with the the Registrar and Transfer Agents (RTA),
in case of holding of shares in the electronic form. In
any service requests or complaints received from
case of shareholding in the physical form, Members are
the Members, is not being processed by the RTA
requested to submit a scanned copy of a duly signed
till the aforesaid details/ documents are provided
covering letter, along with a cancelled cheque leaf
to RTA by the security holders. If any of the above
having the Member’s Name and Bank Account details
cited documents/ details are not available on or
and a copy of their PAN Card, duly self-attested. This will
after October 1, 2023 in the respective Folio(s), the
facilitate receipt of Dividend directly into the Member’s
RTA shall be constrained to freeze such Folio(s).
bank account. In case the cancelled cheque leaf does not
In view of the above, the Shareholders in physical
bear the Member’s Name, please attach a copy of the
mode are advised to submit the necessary details for
bank pass-book statement, duly self-attested.
updating to the RTA, as soon as possible. Relevant
Kindly note that the aforementioned documents are details and forms prescribed by SEBI in this regard
required to be sent at rnt.helpdesk@linkintime.co.in are available on the website of the Bank at https://
OR investorgrievance@dcbbank.com www.dcbbank.com/appeal-to-the-shareholders-of-
dcb-bank-limited
No communication on the tax determination / deduction
shall be entertained after June 15, 2023. It may be further 12) Since transfer of securities of listed companies
noted that in case tax on the said Dividend is deducted at in physical mode has been discontinued with
a higher rate in absence of receipt of the aforementioned effect from, April 1, 2019, except in case of request
details / documents from the Members, there would still received for transmission or transposition of
be an option available with Members to file the return of securities, shares of the Bank are traded on the
income and claim an appropriate refund, if eligible. No stock exchanges compulsorily in demat mode
claim shall lie against the Bank for such taxes deducted. and to eliminate all risks associated with physical
shares, Members holding shares in physical form
For further information, Members are requested to refer
are requested to consider converting their holdings
to the e-mail communication sent to them in this regard..
to dematerialized form. Members can contact the
9) In case of joint holders, the Member whose name Bank or Bank’s RTA viz., Link Intime India Private
appears as the first holder in the order of names Limited for assistance, if any, in this regard.
as per the Register of Members of the Bank will be
13) The Members who are holding shares in demat form
entitled to vote at the AGM.
and have not yet registered their Bank details, e-mail
10) Members holding shares in physical form are IDs, mobile numbers and other KYC Details are
requested to address all their correspondence requested to register the same with their Depository
pertaining to change in their name, postal address, Participant at the earliest, to enable the Bank to use
e-mail address, mobile number, Permanent Account the same for making payment of their Dividend,
Number (PAN), mandates, nominations, power of whenever declared, contact them and serving
attorney, bank details such as, name of the bank and documents to them electronically, hereinafter.
branch details, bank account number, MICR code, Members holding shares in physical mode are
IFSC code, etc. to the Registrar and Transfer Agents requested to provide, if not provided earlier, their
(RTA) viz. Link Intime India Private Limited, C-101, e-mail Ids, mobile numbers, Bank Details and other
247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 KYC documents including PAN, to the RTA sending
083 and Members holding shares in dematerialized an e-mail at rnt.helpdesk@linkintime.co.in or to the
form should approach their respective Depository Bank at investorgrievance@dcbbank.com or online
Participants for the same. facility that may be provided and communicated by
the RTA separately.
11) The Securities and Exchange Board of India (SEBI)
has vide its latest Circular No. SEBI/HO/MIRSD/ 14) Members seeking any information with regard to
MIRSD-PoD-1/P/CIR/2023/37 dated March 16, 2023 the accounts or any matter to be placed at the AGM,
mandated furnishing of PAN, KYC details (i.e., Postal are requested to write to the Bank on or before
Address with Pin Code, e-mail address, mobile June 17, 2023 through e-mail on investorgrievance@
number, bank account details) and nomination dcbbank.com . The same will be replied by the Bank
suitably.

Annual Report 2022-23 | 17

DCB Bank Limited

15) Since the AGM will be held through VC / OAVM, the MCA Circulars, the Bank is providing facility of
route map is not annexed to this Notice. remote e-Voting to its Members in respect of the
business to be transacted at the AGM. For this
16) Members are requested to note that, dividends if not
purpose, the Bank has entered into an agreement
encashed for a consecutive period of 7 years from
with Central Depository Services (India) Limited
the date of transfer to Unpaid Dividend Account
(CDSL) for facilitating voting through electronic
of the Bank, are liable to be transferred to the
means, as the authorized e-Voting agency. The
Investor Education and Protection Fund (“IEPF”).
facility of casting votes by a member using remote
The shares in respect of such unclaimed dividends
e-Voting as well as the e-Voting system on the date
(including the Dividend so transferred to the IEPF
of the AGM will be provided by CDSL.
in the history) are also liable to be transferred to the
demat account of the IEPF Authority. Amount of The Bank has appointed Ms. Aparna Gadgil
such Unclaimed Dividend for FY 2016-17 along with (ACS 14713 & COP 8430) or failing her Mr. S. N.
the underlying shares would be due for transfer to Viswanathan (ACS 61955 & COP 24335) of M/s.
the IEPF in July 2024. In view of this, Members are S. N. ANANTHASUBRAMANIAN & Co., Company
requested to claim their dividends from the Bank, Secretaries, Thane as the Scrutinizer for conducting
within the stipulated timeline. the remote e-Voting and the voting process at the
AGM in a fair and transparent manner. In terms of
17) Members, whose Dividend has remained unpaid, are
requirements of the Companies Act, 2013 and the
requested to contact the RTA viz. Link Intime India
relevant Rules, the Bank has fixed June 15, 2023
Private Limited or Share Department of the Bank to
as the ‘Cut-off Date’. The remote e-Voting /voting
claim their unclaimed Dividend.
rights of the Members/beneficial owners shall be
18) In accordance with the relevant MCA Circulars read reckoned on the Equity Shares held by them as on
with circular dated January 5, 2023 issued by the the Cut-off Date only
Securities and Exchange Board of India providing
INSTRUCTIONS FOR REMOTE E-VOTING AND
relaxations to the certain provision of the SEBI
E-VOTING DURING AGM AND JOINING MEETING
(Listing Obligations and Disclosure Requirements)
THROUGH VC/OAVM ARE AS UNDER:
Regulations, 2015 (collectively referred to as
“Applicable Circulars”), electronic copies of the 1. The voting period begins on June 19, 2023 at
Integrated Annual Report for FY 2022-23 and this 09.00 a.m. (IST) and ends on June 21, 2023 at
Notice inter-alia indicating the process and manner 5.00 p.m. (IST). During this period Shareholders
of e-Voting along with instructions to attend the of the Bank, holding shares either in physical form
AGM through video-conferencing / other audio- or in dematerialized form, as on the cut-off date
visual means are being sent by e-mail to those (record date) of June 15, 2023 may cast their vote
Members whose e-mail addresses have been made electronically. The e-Voting module shall be disabled
available to the Bank / Depository Participants by CDSL for voting thereafter.
and in physical mode to other Shareholders. The
2. Shareholders who have already voted prior to the
Members who have not registered their e-mail
meeting date would not be entitled to vote during
addresses, kindly register the same by sending an
the meeting.
e-mail at rnt.helpdesk@linkintime.co.in.
3. Pursuant to Regulation 44 of Securities and
19) Members who have not updated their latest e-mail
Exchange Board of India (Listing Obligations
address in the records of the Bank / their Depository
and Disclosure Requirements) Regulations, 2015,
Participant, are requested to update the same
listed entities are required to provide remote
before June 15, 2023. The Notice and documents
e-Voting facility to its Shareholders, in respect of
will be sent by e-mail only to those Members who
all Shareholders’ Resolutions. However, it has been
register their e-mail addresses prior to this date.
observed that the participation by the public non-
20) E-Voting: institutional Shareholders/retail Shareholders is at a
negligible level.
Pursuant to the provisions of Section 108 of the
Companies Act, 2013 read with Rule 20 of the Currently, there are multiple e-Voting service
Companies (Management and Administration) providers (ESPs) providing e-Voting facility to listed
Rules, 2014 (as amended) and Regulation 44 of SEBI entities in India. This necessitates registration on
(Listing Obligations & Disclosure Requirements) various ESPs and maintenance of multiple user IDs
Regulations 2015 (as amended), and the applicable and passwords by the Shareholders.

18 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

In order to increase the efficiency of the voting In terms of SEBI circular no. SEBI/HO/CFD/CMD/
process SEBI, vide Circular No. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020 on
CIR/P/2020/242 dated 09.12.2020 has mandated to e-Voting facility provided by Listed Companies,
enable e-Voting to all the demat account holders, by Individual Shareholders holding securities in
way of a single login credential, through their demat demat mode are allowed to vote through their
accounts/ websites of Depositories/ Depository demat account maintained with Depositories and
Participants. Demat account holders would be Depository Participants. Shareholders are advised
able to cast their vote without having to register to update their mobile number and e-mail Id in their
again with the ESPs, thereby, not only facilitating demat accounts in order to access e-Voting facility.
seamless authentication but also enhancing ease
Pursuant to above said SEBI Circular, Login method
and convenience of participating in e-Voting process.
for e-Voting and joining virtual meetings for Individual
4. (a) Step 1: Access through Depositories CDSL/ Shareholders holding securities in Demat mode is given
NSDL e-Voting system in case of individual below:
Shareholders holding shares in demat Mode.

Type of Login Method

Shareholders
I n d i v i d u a l 1) Users who have opted for CDSL Easi/ Easiest facility, can login through their existing user id and
Shareholders password. Option will be made available to reach e-Voting page without any further authentication.
h o l d i n g The users to login to Easi/ Easiest are requested to visit cdsl website www.cdslindia.com and click
securities in on login icon & New System Myeasi Tab.
Demat mode 2) After successful login the Easi/ Easiest user will be able to see the e-Voting option for eligible
with CDSL companies where the evoting is in progress as per the information provided by company. On
Depository clicking the evoting option, the user will be able to see e-Voting page of the e-Voting service
provider for casting your vote during the remote e-Voting period or joining virtual meeting & voting
during the meeting. Additionally, there is also links provided to access the system of all e-Voting
Service Providers, so that the user can visit the e-Voting service providers’ website directly.
3) If the user is not registered for Easi/Easiest, option to register is available at cdsl website www.
cdslindia.com and click on login & New System Myeasi Tab and then click on registration option.
4) Alternatively, the user can directly access e-Voting page by providing Demat Account Number
and PAN No. from a e-Voting link available on www.cdslindia.com home page. The system will
authenticate the user by sending OTP on registered Mobile & E-mail as recorded in the Demat
Account. After successful authentication, user will be able to see the e-Voting option where the
evoting is in progress and also able to directly access the system of all e-Voting Service Providers.

Annual Report 2022-23 | 19

DCB Bank Limited

Type of Login Method

Shareholders
I n d i v i d u a l 1. If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL.
Shareholders Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal
h o l d i n g Computer or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial
securities in Owner” icon under “Login” which is available under ‘IDeAS’ section. A new screen will open. You
demat mode will have to enter your User ID and Password. After successful authentication, you will be able
with NSDL to see e-Voting services. Click on “Access to e-Voting” under e-Voting services and you will be
Depository able to see e-Voting page. Click on company name or e-Voting service provider name and you
will be re-directed to e-Voting service provider website for casting your vote during the remote
e-Voting period or joining virtual meeting & voting during the meeting.
2. If the user is not registered for IDeAS e-Services, option to register is available at
https://eservices.nsdl.com Select “Register Online for IDeAS “Portal or click at
https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
3. Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the
home page of e-Voting system is launched, click on the icon “Login” which is available under
‘Shareholder/Member’ section. A new screen will open. You will have to enter your User ID (i.e.
your sixteen digit demat account number hold with NSDL), Password/OTP and a Verification
Code as shown on the screen. After successful authentication, you will be redirected to NSDL
Depository site wherein you can see e-Voting page. Click on company name or e-Voting service
provider name and you will be redirected to e-Voting service provider website for casting your
vote during the remote e-Voting period or joining virtual meeting & voting during the meeting
Individual You can also login using the login credentials of your demat account through your Depository
Shareholders Participant registered with NSDL/CDSL for e-Voting facility. After successful login, you will be
( h o l d i n g able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/
securities CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click
in demat on company name or e-Voting service provider name and you will be redirected to e-Voting service
mode) login provider’s website for casting your vote during the remote e-Voting period or joining virtual meeting
through their & voting during the meeting.
Depository
Participants

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget
Password option available at abovementioned websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login
through Depository i.e. CDSL and NSDL

Login type Helpdesk details

Individual Shareholders Members facing any technical issue in login can contact CDSL helpdesk by sending
holding securities in Demat a request at helpdesk.evoting@cdslindia.com or contact at 022-23058738 and 022-
mode with CDSL 23058542-43
Individual Shareholders Members facing any technical issue in login can contact NSDL helpdesk by sending a
holding securities in Demat request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30
mode with NSDL

4. (b) Step 2: Access through CDSL e-Voting system in case of Shareholders holding shares in physical mode and
non-individual Shareholders in demat mode.
Login method for e-Voting and joining virtual meeting for physical Shareholders and Shareholders other than
individual Shareholders holding shares in Demat form.
• The Shareholders should log on to the e-Voting website www.evotingindia.com.

20 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

• Click on “Shareholders” module. eligible to vote, provided that company opts for e-Voting
through CDSL platform. It is strongly recommended not
• Now enter your User ID
to share your password with any other person and take
a. For CDSL: 16 digits beneficiary ID, utmost care to keep your password confidential.
b. For NSDL: 8 Character DP ID followed by 8 7. For Shareholders holding shares in physical form, the
Digits Client ID, details can be used only for e-Voting on the Resolutions
c. Shareholders holding shares in Physical Form contained in this Notice.
should enter Folio Number registered with the 8. Click on the Electronic Voting Sequence Number
Company. (EVSN) for DCB Bank Limited on which you choose to
• Next enter the Image Verification as displayed vote.
and Click on Login. 9. On the voting page, you will see “RESOLUTION
• If you are holding shares in demat form and DESCRIPTION” and against the same the option
had logged on to www.evotingindia.com and “YES/NO” for voting. Select the option YES or NO as
voted on an earlier e-Voting of any company, desired. The option YES implies that you assent to the
then your existing password is to be used. Resolution and option NO implies that you dissent to
the Resolution.
• If you are a first-time user follow the steps
given below: 10. Click on the “RESOLUTIONS FILE LINK” if you wish to
view the entire Resolution details.
For Physical Shareholders and other than individual
11. After selecting the Resolution, you have decided to
Shareholders holding shares in Demat.
vote on, click on “SUBMIT”. A confirmation box will be
PAN Enter your 10-digit alpha-numeric *PAN displayed. If you wish to confirm your vote, click on
issued by Income Tax Department “OK”, else to change your vote, click on “CANCEL” and
(Applicable for both demat Shareholders accordingly modify your vote.
as well as physical Shareholders)
12. Once you “CONFIRM” your vote on the Resolution, you
• Shareholders who have not updated will not be allowed to modify your vote.
their PAN with the Company/
13. You can also take a print of the votes cast by clicking on
Depository Participant are requested
“Click here to print” option on the Voting page.
to use the sequence number sent by
Company/RTA or contact Company/ 14. If a demat account holder has forgotten the login
RTA. password then Enter the User ID and the image
verification code and click on Forgot Password & enter
Dividend Enter the Dividend Bank Details or Date
the details as prompted by the system..
Bank Details of Birth (in dd/mm/yyyy format) as
recorded in your demat account or in 15. Additional Facility for Non-Individual Shareholders
OR Date of
the company records in order to login. and Custodians –For Remote Voting only.
Birth (DOB)
• If both the details are not recorded • Non-Individual Shareholders (i.e. other than
with the depository or company, Individuals, HUF, NRI etc.) and Custodians are
please enter the member id / folio required to log on to www.evotingindia.com and
number in the Dividend Bank details register themselves in the “Corporates” module.
field • A scanned copy of the Registration Form bearing
5. After entering these details appropriately, click on the stamp and sign of the entity should be
“SUBMIT” tab. e-mailed to helpdesk.evoting@cdslindia.com.

6. Shareholders holding shares in physical form will then • After receiving the login details a Compliance
directly reach the Company selection screen. However, User should be created using the admin login and
Shareholders holding shares in demat form will now password. The Compliance User would be able to
reach ‘Password Creation’ menu wherein they are link the account(s) for which they wish to vote on.
required to mandatorily enter their login password in • The list of accounts linked in the login should be
the new password field. Kindly note that this password mailed to helpdesk.evoting@cdslindia.com and
is also to be used by the demat holders for voting for on approval of the accounts they would be able
Resolutions of any other company on which they are to cast their vote.

Annual Report 2022-23 | 21

DCB Bank Limited

• A scanned copy of the Board Resolution and advance till June 18, 2023 (5.00 p.m. IST) mentioning
Power of Attorney (POA) which they have their name, demat account number/folio number,
issued in favour of the Custodian, if any, should e-mail id, mobile number at investorgrievance@
be uploaded in PDF format in the system for the dcbbank.com. These queries will be replied to by
scrutinizer to verify the same. the Bank suitably by e-mail.
• Alternatively Non Individual Shareholders are i. Those Members who have registered themselves
required to send the relevant Board Resolution/ as a speaker will only be allowed to express their
Authority letter etc. together with attested views/ask questions during the meeting. The Bank
specimen signature of the duly authorized reserves the right to restrict the number of speakers
signatory who are authorized to vote, to the depending on the availability of time for the AGM.
Scrutinizer and to the Bank at the e-mail address
j. Only those Shareholders, who are present in the
viz. investorgrievance@dcbbank.com , if they have
AGM through VC/OAVM facility and have not
voted from individual tab & not uploaded same in
casted their vote on the Resolutions through remote
the CDSL e-Voting system for the scrutinizer to
e-Voting and are otherwise not barred from doing
verify the same
so, shall be eligible to vote through e-Voting system
INSTRUCTIONS FOR SHAREHOLDERS ATTENDING available during the AGM.
THE AGM THROUGH VC/OAVM & E-VOTING DURING
k. If any Votes are cast by the Shareholders through
MEETING ARE AS UNDER:
the e-voting available during the AGM and if the
a. The procedure for attending meeting & e-Voting same Shareholders have not participated in the
on the day of the AGM is same as the instructions meeting through VC/OAVM facility, then the votes
mentioned above for Remote e-Voting. cast by such Shareholders shall be considered
b. The link for VC/OAVM to attend meeting will be invalid as the facility of e-voting during the meeting
available where EVSN of DCB Bank Limited (the is available only to the Shareholders attending the
Bank) will be displayed after successful login as per meeting.
the instructions mentioned above for e-Voting. PROCESS FOR THOSE SHAREHOLDERS WHOSE
c. Shareholders who have voted through remote E-mail/MOBILE ADDRESSES ARE NOT REGISTERED
e-Voting will be eligible to attend the meeting. WITH THE COMPANY/DEPOSITORIES:
However, they will not be eligible to vote at the AGM. 1. For Physical Shareholders- Please provide necessary
d. Shareholders are encouraged to join the AGM details like Folio No., Name of shareholder, scanned
through laptops for better experience. copy of the share certificate (front and back), PAN
(self attested scanned copy of PAN card), AADHAR
e. Further, Shareholders will be required to allow
(self attested scanned copy of Aadhar Card) by
Camera and use Internet with a good speed to
e-mail to Bank’s e-mail id investorgrievance@
avoid any disturbance during the meeting.
dcbbank.com or RTA e-mail id rnt.helpdesk@
f. Please note that Participants Connecting from linkintime.co.in
Mobile Devices or Tablets or through Laptop
2. For Demat Shareholders -Please update your e-mail
connecting via Mobile Hotspot may experience
id & mobile no. with your respective Depository
Audio/Video loss due to Fluctuation in their
Participant (DP).
respective network. It is therefore recommended to
use Stable Wi-Fi or LAN Connection to mitigate any 3. For Individual Demat Shareholders – Please update
kind of aforesaid glitches. your e-mail id & mobile no. with your respective
Depository Participant (DP) which is mandatory
g. Shareholders who would like to express their views/
while e-Voting & joining virtual meetings through
ask questions during the meeting may register
Depository.
themselves as a speaker by sending their request
in advance through e-mail during the period from If you have any queries or issues regarding attending
June 16, 2023 (9.00 a.m. IST) to June 18, 2023 (5.00 AGM & e-Voting from the CDSL e-Voting System, you
p.m. IST) mentioning their name, demat account can write an e-mail to helpdesk.evoting@cdslindia.com
number/folio number, e-mail id, mobile number at or contact at 022-23058738 and 022-23058542/43
investorgrievance@dcbbank.com.
All grievances connected with the facility for voting
h. The Shareholders who do not wish to speak during by electronic means may be addressed to Mr. Rakesh
the AGM but have queries may send their queries in Dalvi, Sr. Manager, (CDSL, ) Central Depository Services

22 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

(India) Limited, A Wing, 25th Floor, Marathon Futurex, appointment of Statutory Auditors on an annual basis.
Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel Accordingly, the Board of Directors of the Bank vide its
(East), Mumbai - 400013 or send an e-mail to helpdesk. Resolution dated December 9, 2022 had recommended
evoting@cdslindia.com or call on 022-23058542/43. M/s. B S R & Co LLP, Chartered Accountants (ICAI
Firm Registration No. 101248W/W100022), as the first
Other Instructions
preferred firm to the RBI for appointment as Joint
The result of the e-voting will be announced within two Statutory Auditors of the Bank, for a period commencing
working days after the conclusion of the meeting on the from the conclusion of this 28th Annual General Meeting
Bank’s website at www.dcbbank.com, website of CDSL at until the conclusion of the 31st Annual General Meeting of
www.evotingindia.com and will be communicated to the the Bank for a continuous period of three (3) years (from
Stock Exchanges.. FY 2023-24 to FY 2025-26) subject to the RBI approval
EXPLANATORY STATEMENT AS REQUIRED UNDER for each year and firm satisfying the eligibility norms each
SECTION 102 OF THE COMPANIES ACT, 2013 AND year in this regard. Also, the Board of Directors of the
OTHER APPLICABLE PROVISIONS Bank had recommended approval of the RBI for the re-
appointment of M/s. Sundaram & Srinivasan, Chartered
Item No 4
Accountants, (ICAI Registration No. 004207S) for their
Appointment of Joint Statutory Auditors third and final year for FY 2023-24.
The Reserve Bank of India (“RBI”) has on April 27, 2021,
The RBI has vide its letter Ref CO.DOS.RPD.No.
issued the Guidelines for Appointment of Statutory
S995/08.37.005/2023-24 dated May 11, 2023 has
Central Auditors (SCAs)/ Statutory Auditors (SAs) of
approved the appointment of M/s. Sundaram & Srinivasan,
Commercial Banks (excluding RRBs), UCBs and NBFCs
Chartered Accountants (ICAI Registration No. 004207S)
(including HFCs) (“RBI Guidelines”). In terms of the
and M/s. B S R & Co LLP, Chartered Accountants (ICAI
RBI Guidelines, the Joint Statutory Auditors have to
Firm Registration No. 101248W/W100022) as the Joint
be appointed for a maximum term of three (3) years
Statutory Auditors of the Bank for the financial year
and, given that the Bank’s asset size is more than the
2023-24, being their third year (final year) and first year
stipulated threshold in this regard, the Bank needs to
respectively.
appoint a minimum of two Joint Statutory Auditors.
Brief Profile of M/s. B S R & Co LLP, Chartered
M/s. S R Batliboi & Associates LLP, Chartered
Accountants
Accountants (Registration No.101049W/E300004), who
were appointed as Statutory Auditors of the Bank at the B S R & Co. LLP is a member entity of B S R & Affiliates,
25th AGM held on July 11, 2020 initially for four years a network registered with the Institute of Chartered
and whose terms were revised from 4 to 3 years in the Accountants of India.
26th Annual General Meeting (AGM) of the Bank held
on August 13, 2021 to hold office for a period of three B S R & Co. LLP is registered in Mumbai, Gurgaon,
(3) years with effect from the Financial Year 2020-21 Bangalore, Kolkata, Hyderabad, Pune, Chennai,
till (and including) the Financial Year 2022-23, will be Chandigarh, Ahmedabad, Vadodara, Noida, Jaipur,
completing their terms as a Joint Statutory Auditors Gandhinagar and Kochi. B S R & Co. LLP has over 4000
after completion of 28th Annual General Meeting of the staff, 140+ Partners. B S R & Co. LLP audits various
Bank. Further, M/s. Sundaram & Srinivasan, Chartered companies listed on stock exchanges in India including
Accountants, (ICAI Registration No. 004207S) will be companies in the financial service sector.
continuing as Joint Statutory Auditors, for their third
and final year, i.e. for FY 2023-24, who were appointed as Brief Profile of M/s. Sundaram and Srinivasan, Chartered
Joint Statutory Auditors of the Bank, at the 26th AGM of Accountants
the Bank held on August 13, 2021. As the term of M/s. S
M/s. Sundaram & Srinivasan is a Chartered Accountant
R Batliboi & Associates LLP, Chartered Accountants was
(ICAI Firm Registration No. 004207S) established in 1943
for the FY 2020-21 till the FY 2022-23, M/s. Sundaram and
and is one of the largest audit firms in South India having
Srinivasan, Chartered Accountants, would need to act as
12 partners and offices in Chennai, Madurai, Mumbai and
Joint Statutory Auditor of the Bank, with such other Joint
Bangalore.
Statutory Auditor(s) as the Bank may appoint, subject to
the approval of RBI and the Members of the Bank. They have rich and deep experience for over 8 decades
in sectors like Manufacturing, NBFC/HFC, Banks, Mutual
As per the RBI guidelines, the Bank is required to
Funds, Investment Services. Insurance, Healthcare, IT
obtain prior approval of the RBI for appointment/ re-

Annual Report 2022-23 | 23

DCB Bank Limited

& ITES, Real Estate, Media, Public sector enterprises, M/s. B S R & Co LLP, Chartered Accountants and
Agriculture and charitable trusts rendering services for M/s. Sundaram & Srinivasan, as Joint Statutory Auditors
more than 350 clients. The audit firm has valid peer of the Bank shall be paid overall audit fees of ` 1.65
review certificate. crore (Rupees One Crore and Sixty Five Lakhs Only)
per annum for FY 2023-24, to be allocated by the Bank
Accordingly, the approval of Members of the Bank is between M/s. B S R & Co LLP, Chartered Accountants
required pursuant to the provisions of Sections 139, and M/s. Sundaram & Srinivasan, Chartered Accountants
141, 142 and other applicable provisions, if any, of the as the Joint Statutory Auditors, as may be mutually
Companies Act, 2013 and the relevant rules made agreed between the Bank and the said Joint Statutory
thereunder and pursuant to Section 30 of the Banking Auditors, depending upon their respective scope of work
Regulation Act, 1949 and guidelines issued by the RBI and additionally out of pocket expenses and taxes as
including any amendments, modifications, variations or applicable.
re-enactments thereof, for appointment of M/s. B S R &
Co LLP, Chartered Accountants (ICAI Firm Registration The Board of Directors recommends the appointment of
No. 101248W/W100022) who have offered themselves the M/s. B S R & Co LLP, Chartered Accountants as the
for appointment and have confirmed their eligibility to Joint Statutory Auditors of the Bank, based on a review
be appointed as Joint Statutory Auditors of the Bank of their profile, experience and specialization in audit
in terms of Section 141 of the Companies Act, 2013 and of banking and financial service sector, for the period
applicable Rules and the guidelines issued by RBI dated commencing from the conclusion of this 28th Annual
April 27, 2021, as the Joint Statutory Auditors of the General meeting until the conclusion of the 31st Annual
Bank, for the period commencing from the conclusion General Meeting of the Bank for a continuous period of
of this 28th Annual General Meeting until the conclusion three (3) years (from FY 2023-24 to FY 2025-26) subject
of the 31st Annual General Meeting of the Bank for a to the RBI approval on an annual basis and firm satisfying
continuous period of three (3) years (from FY 2023- the eligibility norms each year in this regard. Further, the
24 to FY 2025-26) subject to the RBI approval on an Board of Directors recommends the re-appointment of
annual basis and firm satisfying the eligibility norms each M/s. Sundaram and Srinivasan, Chartered Accountants as
year in this regard, for the purpose of audit including the Joint Statutory Auditors of the Bank for their third
certifications, reporting on internal financial controls and final year for FY 2023-24.
of the Bank’s account at its head office, branches and
other offices with power to the Board, including relevant Your Board recommends the passing of the Resolutions
Committee(s) thereof, to alter and vary the terms and in Item no.4 of the accompanying Notice.
conditions of appointment, remuneration, reimbursement
None of the Directors, Key Managerial Personnel and
of expenses etc., including by reason of necessity on
their relatives are concerned or interested in the passing
account of conditions as may be stipulated by the RBI
of the Resolutions in item nos. 4.
and/ or any other authority, in such manner and to such
extent as may be mutually agreed between the Bank Item No. 5
and the Joint Statutory Auditors and as may be further
approved by the Board from time to time. Raising of funds by issue of bonds/ debentures/
securities on private placement basis
Further, subject to applicable law and regulations
including the relevant guidelines and circulars of the RBI The Bank has been borrowing funds from time to time
(as may be amended, restated, modified, replaced from to meet the business requirements within the limits
time to time), M/s. B S R & Co LLP, Chartered Accountants approved by the Members by way of issuance of various
(ICAI Firm Registration No. 101248W/W100022) and debt securities, Bonds/Debentures as permitted by the
M/s. Sundaram & Srinivasan, Chartered Accountants, Reserve Bank of India (“RBI”) and in accordance with the
(ICAI Registration No. 004207S), the existing continuing provisions of the Companies Act, 2013 (“the Act”) and
Statutory Auditors of the Bank, shall act as Joint rules made thereunder, Securities and Exchange Board
Statutory Auditors of the Bank for the remainder of the of India (Issue and Listing of Non-Convertible Securities)
term of M/s. Sundaram & Srinivasan, and that M/s. B S R Regulations, 2021 (“SEBI ILNCS”), SEBI (Listing
& Co LLP, Chartered Accountants shall thereafter act as Obligations and Disclosure Requirements) Regulation,
Joint Statutory Auditors of the Bank with such new Joint 2015 (SEBI Listing Regulations) as amended from time
Statutory Auditor(s) who will be appointed by the Bank to time and other applicable laws/regulation as may be
subject to approval of RBI and approval of the Members applicable from time to time.
of the Bank from FY 2024-25 onwards.

24 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

In terms of Section 42 of the Act read with Companies conditions including the price, coupon, at par/ premium/
(Prospectus and Allotment of Securities) Rules, 2014, the discount, tenor etc., as may be determined by the Board
Bank is permitted to make private placement of securities any committee(s) thereof or such other persons as
subject to the condition that the proposed offer of may be authorized by the Board, depending upon the
Securities or invitation to subscribe Securities has been prevailing market conditions, as permitted under the
previously approved by the Members of the Bank, by a applicable laws/regulations.
Special Resolution, for each of the offers or invitations/
subscriptions. In case of offer or invitation for subscription The proposed Resolution shall be valid for a period of
of non-convertible debentures, it shall be sufficient if the one (1) year from the date of passing of this Resolution
Bank passes a Special Resolution only once in a year for all and the offer shall be made to such persons as identified
the offers or invitation for subscription of such debentures (“Eligible Investors”) pursuant to the Act, SEBI ILNCS,
during the period of one (1) year from the date of passing and other applicable laws/ rules/ regulations as may be
of the Special Resolution. applicable to the Bank from time to time.

Considering the above, the Board of Directors of the Accordingly, the approval of Members is being sought by
Bank at their meeting held on May 5, 2023 have proposed way of a Special Resolution as set out at in Item No. 5 of
to obtain the consent of the Members of the Bank for this Notice.
borrowing/ raising funds in Indian/ Foreign currency,
Your Board recommends passing of the Special
by issue of debt securities including but not limited
Resolution as set out in Item No. 5 of this Notice for
to Unsecured Redeemable Taxable Non-Convertible
approval by the Members of the Bank.
Subordinated Basel III Compliant Tier II Bonds/ Non-
Convertible Debentures (including bonds forming part None of the Directors or Key Managerial Personnel of the
of Tier I Capital/Tier II Capital in accordance with and Bank and/ or their relatives are concerned or interested
subject to the terms and conditions specified in the in the passing of this Resolution.
Basel III Capital Regulations prescribed by the RBI), long
terms infrastructure bonds or such other bonds as may Item No. 6
be permitted by the RBI from time to time in domestic
and/ or overseas market, on private placement basis Issue of Equity Shares/ other securities convertible
and/ or for making offers and /or invitations therefor into Equity Shares (“Securities”) through Qualified
and /or issue(s)/ issuances therefor, on private placement Institutions Placement (QIP)
basis, for a period of one year from the date hereof, in
one or more tranches and/ or series and under one The proposed Resolution relates to the proposed issue of
or more shelf disclosure documents and/ or one or Equity Shares or other securities convertible into Equity
more letters of offer and on such terms and conditions Shares through Qualified Institutional Placement (QIP) as
for each series/ tranches including the price, coupon, defined in the text of the Special Resolution thereat to
premium, discount, tenor etc. as deemed fit by the Board Qualified Institutional Buyers as defined under Chapter
or any committee(s) thereof or such other persons as VI of the Securities and Exchange Board of India (Issue
may be authorized by the Board, as per the structure of Capital and Disclosure Requirements) Regulations,
and within the limits permitted by the RBI, of an amount 2018 (“ICDR Regulations”) for an amount not exceeding
not exceeding ` 500 crore (Rupees Five Hundred crore) `500 Crore (Rupees Five Hundred Crore only).
over and above the outstanding debt securities issued by
The Bank proposes to grow secured retail assets (e.g.
the Bank and in aggregate for additional Tier I and Tier II
housing loans, gold loans etc.), Micro SME / SME, Mid
Capital within the overall borrowing limits of the Bank, as
Corporate, Agriculture and Microfinance businesses. The
approved by the Members from time to time. This would
risk weighted assets of the Bank are expected to rise
form part of the overall borrowing limits under Section
with increase in the business level. In this backdrop, the
180(1)(c) of the Companies Act, 2013.
Bank proposes to shore up its capital base through issue
The pricing of the debt securities referred above depends of Equity Shares. Assuming maintenance of conservative
on various factors which may primarily include the ratio of 11.50% capital adequacy on incremental assets,
rates prevailing for risk free instruments, rates on other the proceeds of the issue of Equity Shares would enable
competing instruments of similar rating and tenor in the the Bank to add approximately `4,348 crore of risk
domestic or overseas markets, investor appetite for such weighted assets.
instruments and prevailing investor regulations. Further,
The proposed issuance of Equity Shares in terms of the
the debt securities may be issued on such terms and
Special Resolution in the Notice will be in conformity

Annual Report 2022-23 | 25

DCB Bank Limited

with the provisions of all applicable laws/ regulations. the appointment of Ms. Lakshmy Chandrasekaran
The detailed terms and conditions for the issuance of as an Additional Independent Director, not liable to retire
the Equity Shares as and when made will be determined by rotation, for a period of three (3) years with effect
by the Board in consultation with the Merchant Bankers, from April 14, 2023 to April 13, 2026 (both days inclusive),
Lead Managers, Advisors and such other authorities as subject to the approval of the Members of the Bank.
may require to be considered by the Bank, considering
the prevailing market conditions and other relevant In terms of Section 160 of the Companies Act, 2013, the
factors. The Special Resolution seeks to give the Board Bank has received a notice from a member proposing
powers to issue Equity Shares in one or more tranches at the candidature of Ms. Lakshmy Chandrasekaran as a
such time or times, at such price or prices, and to such of Director of the Bank.
the Investors as are mentioned therein as the Board in its
The Bank has received the declarations from
absolute discretion deems fit.
Ms. Lakshmy Chandrasekaran to the effect that fulfils
Since the Special Resolution proposed in the Notice all criteria for independence as provided under Section
under Item No.6 may or will result in the issue of Equity 149(6) of the Act and Regulation 16 of the Securities
Shares of the Bank otherwise than to the Members of the and Exchange Board of India (Listing Obligations and
Bank, consent of the Members is being sought pursuant Disclosure Requirements) Regulations, 2015 (“SEBI
to the provisions of Sections 62(1)(c) and other applicable Listing Regulations”) and meets the Fit and Proper
provisions of the Companies Act, 2013 and SEBI (Listing criteria prescribed by the Reserve bank of India (“RBI”)
Obligations and Disclosure Requirements) Regulations, and other applicable guidelines/circulars issued from
2015 in terms of the Special Resolutions in the Notice. time to time.
The Board recommends the Special Resolution as set out
Ms. Lakshmy Chandrasekaran is qualified to be appointed
in Item No. 6 of the accompanying Notice, for approval
as a Director in terms of Section 164 of the Act and has
of the Members.
given her written consent to act as a Director of the Bank.
The Directors, Key Managerial Personnel of the Bank
In terms of the Companies (Creation and Maintenance of
and their relatives may be deemed to be concerned or
databank of Independent Directors) Rules, 2019 read with
interested in the Special Resolution as set out in Item
Rule 6 of the Companies (Appointment and Qualification
No. 6 to the extent that their respective percentage
of Directors) Rules, 2014, as amended from time to time,
shareholding in the Bank may be affected in case of issue
Ms. Lakshmy Chandrasekaran has enrolled her name in
of Equity Shares to the Investors pursuant thereto.
the online databank of Independent Directors maintained
Item No. 7 by the Government of India.

To approve the appointment of Ms. Lakshmy Accordingly, the approval of the Members is sought for
Chandrasekaran (DIN: 00240466) as an Independent the appointment of Ms. Lakshmy Chandrasekaran as an
Director of the Bank Independent Director, not liable to retire by rotation, to
hold office for a period of three (3) years, from April 14,
The Board of Directors of the Bank, based on the 2023 to April 13, 2026 (both days inclusive).
recommendation of the Nomination and Remuneration
Committee (NRC), and pursuant to the provisions of Brief profile of Ms. Lakshmy Chandrasekaran in terms of
Section 161(1) of the Companies Act, 2013 (“the Act”) read the SEBI Listing Regulations and the Secretarial Standard
with the Article of Association of the Bank, had approved on the General Meetings (“SS-2”) has been provided in
this Explanatory Statement as under:

Name of Director Ms. Lakshmy Chandrasekaran

Director Identification Number (DIN) 00240466
Designation/category of the Director Independent Director
Age 57 years
Date of the first appointment on the Board April 14, 2023
Number of Meetings of the Board attended 1 (till the date of this Notice)
during the year
Qualifications B.Com, FCA

26 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Brief Profile and Experience Ms. Lakshmy Chandrasekaran is a Chartered Accountant by qualification.
She also holds a diploma in Internal Financial Reporting and Information
Systems and has over 35 years’ of experience in the field of Accountancy,
Finance, Taxation, and Risk Management. She is a Senior Partner of
M/s. P. Chandrasekar LLP, Chartered Accountants, a leading firm of Chartered
Accountants, established in the year 1988 specializing in the field of Auditing,
Taxation, Corporate Advisory Services, Management Consulting Services, Due
diligence, Valuations, Inspections and Investigations. With over 31 years of
experience as an Audit partner for Listed and Unlisted Entities besides NBFCs
and Public and Private Sector Banks, for the last many years. Also, in charge
of Risk Management, Quality Assurances, Governance of Clients and Financial
Consultancy to Medium and Large Business Organisations. She is also a partner
in charge of Due Diligence and Fraud Detection in Corporate Accounting and
Finance and technical aspects of Systems Control and Data Managements.
Expertise/ Skills in specific functional areas Accountancy, Finance and Risk Management
Directorships held in other companies Bhat Investments Private Limited-Non-Executive Director
(excluding foreign companies) as on date of
this Notice
Memberships / Chairmanships of None
committees of other companies (excluding
foreign companies) as on date of this Notice
Resignation from the listed entities during None
past 3 years
Relationship between Directors inter-se and None
Key Managerial Personnel of the Bank
Shareholding in the Bank including Nil
shareholding as a beneficial owner
Terms and Conditions of appointment Ms. Lakshmy Chandrasekaran shall be appointed as an Independent Director,
/ re-appointment including Details of not liable to retire by rotation, to hold office for a period of three (3) years,
Remuneration sought to be paid from April 14, 2023 to April 13, 2026 (both days inclusive). As an Independent
Director, Ms. Chandrasekaran will be entitled to sitting fees and reimbursement
of expenses for attending the meetings of the Board and Committees.
Justification for appointment and skills The Board of Directors of the Bank is of the opinion that Ms. Lakshmy
and capabilities required for the role and Chandrasekaran is a person of integrity and considering her qualifications,
the manner in which the proposed person extensive knowledge and rich experience in the field of Accountancy, Finance,
meets such requirements and Risk Management, appointment of Ms. Chandrasekaran is in the interest of
the Bank. Her association would be of immense benefit and value to the Bank
and, therefore, the Board recommends her appointment as an Independent
Director to the Members.

Your Board of Directors recommend passing of Item No.8

the Special Resolution set out in Item No. 7 of the
accompanying Notice. To take note of the appointment of Mr. Farokh Nariman
Subedar (DIN: 00028428) as Non-Executive Part-Time
Except Ms. Lakshmy Chandrasekaran and/or her relatives, Chairman of the Bank and to approve payment of
no other Directors, Key Managerial Personnel of the Bank remuneration
or their respective relatives are in any way concerned or
interested, financially or otherwise, in the said Special The Board of Directors of the Bank based on the
Resolution. Ms. Chandrasekaran is not related to any of recommendation of the Nomination and Remuneration
the Directors or Key Managerial Personnel of the Bank Committee (NRC), pursuant to Section 161(1) of the

Annual Report 2022-23 | 27

DCB Bank Limited

Companies Act, 2013 (“the Act”) had approved the shall be the duty of every Debenture Trustee to appoint
appointment of Mr. Farokh Nariman Subedar as an a nominee director on the Board of the Bank in the event
Additional Independent Director of the Bank, not liable of (i) two consecutive defaults in payment of interest
to retire by rotation, for a period of three (3) years with to the Debenture Holders; or (ii) default in creation of
effect from October 15, 2022 to October 14, 2025 (both security for debentures; or (iii) default in redemption of
days inclusive), subject to the approval of the Members of Debentures. Accordingly, in case of any of the mentioned
the Bank. Further, the Shareholders of the Bank, through defaults, the Bank shall be required to appoint the person
postal ballot dated December 20, 2022, had approved nominated by the Debenture Trustees as a director on
the appointment of Mr. Farokh Nariman Subedar as an the Board of Bank, within one month from date of
Independent Director of the Bank for a period of three receipt of nomination from the Debenture Trustee or
(3) years, from October 15, 2022 to October 14, 2025 such other timelines permitted by the law.
(both days inclusive).
The Bank is required to comply with the above
Pursuant to the recommendations of the Board of requirement of insertion of above clause in the Article
Directors of the Bank, the Reserve Bank of India vide of Association of the Bank on or before September 30,
its letter Ref.DoR.GOV.No.S6961/29.03.002/2022-23 2023. The Board of Directors of the Bank at their meeting
dated January 31, 2023 approved the appointment of held on May 5, 2023 have, subject to the approval of the
Mr. Farokh Nariman Subedar as Non-Executive Part-Time Members of the Company by way of Special Resolution,
Chairman of the Bank for 3 (three) years with effect from approved the alteration to the Articles of Association of
January 31, 2023 till January 30, 2026 and approved the the Bank.
payment of remuneration as proposed in the Resolution.
A copy of the Articles of Association of the Bank with
Your Directors, therefore, recommend the passing of proposed alteration would be available for inspection for
the Special Resolution as set forth in Item No. 8 of this the Members by writing to the Company Secretary at
Notice, to take note of the appointment of Mr. Farokh investorgrievance@dcbbank.com
Nariman Subedar as Non-Executive Part-Time Chairman
of the Bank and to approve payment of remuneration to The Board of Directors recommends the passing of the
him as proposed in the Resolution. Special Resolution as set out in Item No. 9 of the Notice.

Except Mr. Farokh Subedar and his relatives, none None of the Directors, Key Managerial Personnel of the
of the other Directors, Key Managerial Personnel or Bank and/ or their relatives are Key Managerial Personnel
their relatives are, in any way, concerned or interested, of the Bank and their relatives, are directly or indirectly,
financially or otherwise, in the above Resolution. concerned or interested in the Resolution set out at Item
No. 9
Item No. 9

Alteration of Articles of Association of the Bank By Order of the Board of Directors
 DCB Bank Limited
The Securities and Exchange Board of India (“SEBI”) has
amended the SEBI (Issue and Listing of Non-Convertible
Securities) Regulations, 2021 (“NCS Regulations”) Place: Mumbai Rubi Chaturvedi
effective from February 2, 2023. Pursuant to the said Date: May 5, 2023 Company Secretary
amendment, the Bank needs to ensure that its Articles
of Association shall provide for appointment of person Registered Office:
nominated by the Debenture Trustees as a director on CIN:L99999MH1995PLC089008
the Board of the Bank in terms of regulation 15(1)(e) of Peninsula Business Park,
the Securities and Exchange Board of India (Debenture 6th Floor, 601 & 602, Tower A,
Trustees) Regulations, 1993 (“DT Regulations”). Senapati Bapat Marg,
Lower Parel, Mumbai 400 013.
Pursuant to the above amendment, and as per the Website: www.dcbbank.com
regulation 15(1)(e) of DT Regulations as stated above, it e-mail: investorgrievance@dcbbank.com

28 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Details of Mr. Iqbal Khan, who retires by rotation and being eligible, offers himself for re-appointment in the 28th Annual General Meeting
of the Bank (Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations), are given below:

Name of Director Mr. Iqbal Khan

Director Identification Number (DIN) 07870063
Designation/category of the Director Non-Executive, Non-Independent Director
Age 45 years
Date of the first appointment on the Board July 15, 2017
Number of Meetings of the Board attended 10
during the year
Qualifications LL.B. / JD / BSc Computer Science
Brief Profile and Experience Mr. Iqbal Khan, a Non-Executive Non Independent Director of the Bank, is a
Senior Partner at Shardul Amarchand Mangaldas & Co. and a member of the
Private Equity and Mergers & Acquisitions Practice Group. He advises some
of the largest sovereign wealth funds, global private equity funds and strategic
corporate, and specializes in private equity investments, private and public
mergers and acquisitions (both domestic and cross-border), joint ventures and
foreign investment laws. Mr. Iqbal finished his J.D. from Columbia Law School
(as a Harlan Fisk Stone Scholar) and LLB. From London School of Economics
and Political Science. Mr. Iqbal has also worked at Kirkland & Ellis LLP,New
York and at Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York. He is
enrolled with the Bar Council of Maharashtra & Goa
Expertise/ Skills in specific functional areas Law, Merger & Acquisitions and Strategic Options
Directorships held in other companies None
(excluding foreign companies) as on date of
this Notice
Memberships / Chairmanships of None
committees of other companies (excluding
foreign companies) as on date of this Notice
Resignation from the listed entities during None
past 3 years
Relationship between Directors inter-se and None
Key Managerial Personnel of the Bank
Shareholding in the Bank including NIL
shareholding as a beneficial owner
Terms and Conditions of appointment Mr. Iqbal Khan shall be re-appointed as a Non-Executive Non Independent
/ re-appointment including Details of Director, liable to retire by rotation. As a Non-Executive Non Independent
Remuneration sought to be paid Director, Mr. Iqbal Khan will be entitled to sitting fees and reimbursement of
expenses for attending the meetings of the Board and Committees.
Justification for appointment and skills The Board of Directors of the Bank is of the opinion that Mr. Iqbal Khan continued
and capabilities required for the role and to be a person of integrity and considering his qualifications, extensive
the manner in which the proposed person knowledge and rich experience in the field of Law, Merger & Acquisitions and
meets such requirements Strategic Options, re-appointment of Mr. Iqbal Khan is in the interest of the
Bank. His continuous association would be of immense benefit and value to
the Bank and, therefore, the Board recommends his re- appointment as a Non-
Executive Non Independent Director, to the Members.

Annual Report 2022-23 | 29

DCB Bank Limited

DIRECTORS’ REPORT
Your directors are pleased to present the Twenty-Eighth Capital Adequacy Ratio (CAR) under Basel III as on March
Annual Report of DCB Bank Limited (hereinafter referred 31, 2023 stood at 17.55% (18.92% as on March 31, 2022).
to as the Bank/Your Bank/DCB Bank) together with the
audited accounts for the Financial Year ended March 31, FINANCIAL SUMMARY
2023 (FY 2023). (` in crore)

As at March As at March Increase /

In FY 2023, the Bank has posted an Operating Profit of
Balance Sheet 31, 2023 31, 2022 (Decrease)
` 786.73 Crore (FY 2022 ` 796.98 Crore) and Net Profit of
` 465.56 Crore (FY 2022 ` 287.50 Crore). Customer 37,139.76 31,280.26 5,859.50
Deposits
Total Assets have increased by ` 7,573.31 Crore and reached Inter Bank 4,099.15 3,411.43 687.72
` 52,365.87 Crore as on March 31, 2023 (` 44,792.56 Crore Deposits
as on March 31, 2022).
Total Deposits 41,238.91 34,691.69 6,547.22
Customer Deposits have increased by ` 5,859.50 Crore [Including Total [10,895.61] [9,281.08] 1,614.53
and Advances have increased by ` 5,284.96 Crore. Your CASA*]
Bank continues to make significant contribution to Priority Advances 34,380.74 29,095.78 5,284.96
Sector Lending (PSL) and has achieved the overall PSL Gross – NPA 1,122.84 1,289.93 (167.09)
target as required by the Reserve Bank of India (RBI).
Net – NPA 356.92 573.23 (216.31)
The Net Interest Margin (NIM) was 3.93% in FY 2023 as Total Assets 52,365.87 44,792.56 7,573.31
compared to 3.56% in FY 2022 and the Current and Savings
* Current and Savings Accounts (CASA)
Accounts (CASA) ratio stood at 26.42% as on March 31, 2023.

Cost to Income Ratio has increased to 63.00% in FY 2023 For the For the
from 55.96% in FY 2022. Total Branch network stood at year ended year ended
427 as on March 31, 2023 (400 as on March 31, 2022) and March 31, March 31, Increase /
Automated Teller Machines (ATMs) network was 396 as on Profit & Loss 2023 2022 (Decrease)
March 31, 2023 (349 as on March 31, 2022). Interest Income 4,200.27 3,512.77 687.50
Interest 2,483.26 2,155.26 328.00
Provisions Other Than Tax have decreased to ` 159.17 Crore
Expense
in FY 2023 from ` 407.43 Crore in FY 2022. Your Bank has
been making conservative provision for Non-Performing Net Interest 1,717.01 1,357.51 359.50
Assets (NPA) and Covid-19 related restructured loans. In Income
addition, the Bank has also been making periodic Floating Non-Interest 409.39 452.04 (42.65)
Provision and provision against Standard Assets. Income
Total Operating 2,126.40 1,809.55 316.85
Gross NPAs have decreased to ` 1,122.84 Crore as on Income
March 31, 2023 from ` 1,289.93 Crore as on March 31,
Operating Cost 1,339.67 1,012.57 327.10
2022. Consequently, Gross NPA Ratio as on March 31,
2023 was 3.19% as compared to 4.32% as on March 31, Operating 786.73 796.98 (10.25)
2022. Net NPAs have decreased to ` 356.92 Crore as on Profit
March 31, 2023 as against ` 573.23 Crore as on March 31, Provisions 159.17 407.43 (248.26)
2022. Consequently, Net NPA Ratio as on March 31, 2023 Other than Tax
was 1.04% as compared to 1.97% as on March 31, 2022. The Net Profit 627.56 389.55 238.01
overall NPA Provision Coverage Ratio as on March 31, 2023 Before Tax
was 79.34% (67.84% as on March 31, 2022). Tax 162.00 102.05 59.95
Return on Assets (RoA) Ratio in FY 2023 was 0.97% as Net Profit After 465.56 287.50 178.06
compared to 0.70% in FY 2022. Corresponding Return on Tax
Equity (RoE) Ratio in FY 2023 was 11.70% as compared to
7.92% in FY 2022.

30 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

DIVIDEND Maker, Garment Shop, Fashion Tailor, Hardware Shop, Agri

Processor, Pesticide Dealer, Auto Dealer, Scrap Dealer,
Your Board is pleased to recommend a dividend of ` 1.25 Stationery Supplier, FMCG or Consumer Goods Dealer,
per equity share of ` 10.00 each in respect of Financial Tool Maker, Agri Input Dealer, Tractor Dealer, Plastic
Year ended March 31, 2023 (` 1.00 per equity share of Manufacturer, Mattress Manufacturer, Water Supplier,
`10.00 each for the Financial Year ended March 31, 2022). Computer Training Classes, Internet Café, Coaching
Classes, Tour Operator, Hotel Owner, Transporter, Ticketing
MANAGEMENT DISCUSSION AND ANALYSIS Agent, C&F Agent, amongst others. The list of Self-
VISION Employed occupation is endless. The target market is
essentially Micro, Small and Medium Enterprises both in
The Bank’s vision is to be the most innovative and responsive Manufacturing and Services. (Please refer to MSMED Act,
neighbourhood bank in India serving entrepreneurs, 2006). Majority of lending to MSME sector qualifies for
individuals, and businesses. In line with this vision, the Bank Priority Sector Lending. A major share of deposits and
began implementing a new strategy in FY 2010. loans of the Bank are from the self-employed segment.

TARGET MARKET CREDIT RATINGS

Keeping in view its inherent strengths, branch network During the year FY 2023, CRISIL Ratings Limited has re-
and expertise, the Bank’s target market is mainly small affirmed the Bank’s rating for Tier II Bonds (under Basel
business owners / self-employed / small business III) as CRISIL AA-/Stable and re-affirmed its rating of the
segment (traders, shopkeepers, business owners, Micro, Bank’s Certificates of Deposit Programme and Short-
Small & Medium Enterprises (MSMEs) and (Small and term Fixed Deposit Programme as CRISIL A1+.
Medium-sized Enterprises (SMEs). The MSME/SME
sector is a vibrant and dynamic sector of the Indian During FY 2023, ICRA Limited has reaffirmed the rating
economy and plays a very important role in the growth for Tier II Bonds as ICRA A+ with revision in outlook to
of the Indian economy. This segment is usually resilient Positive from Stable and re-affirmed its rating on the
(once again demonstrated post Covid-19 pandemic) and Bank’s Short-term Fixed Deposit Programme as ICRA
displays entrepreneurial spirit. Small enterprises create A1+. Further, at the request of the Bank, ICRA Limited has
millions of jobs and maintain social stability. The MSME discontinued the rating of Tier II Bonds that got matured
sector plays a pivotal role in the economic and social during the year.
development of the country. As per estimates the MSME
sector contributes around 30% to India’s GDP. AWARDS AND RECOGNITION
Some useful information on the MSME sector is given
Your Bank continued to be recognized for its progress and
below:
initiatives across verticals. The details of various awards/
• Number of Working Enterprises: 63.4 million, recognitions received by your Bank during FY 2023 are
Employment: 111 million individuals given below:
• Urban: 49%, Rural: 51%
Corporate Social Responsibility (CSR)
• Manufacturing: 32%, Trade 35%, Other Service: 33%
• Sole Proprietor: 96% Your Bank was recognized as India’s Best Bank for CSR
(Source: Annual Report FY 2021-22 Government of India, 2022 by Asiamoney. The Bank won Euromoney Market
Ministry of Micro, Small and Medium Enterprise) Leaders CSR (Notable) 2022 by Euromoney. Groundwater
depletion, which also endangers the availability of
DCB BANK CUSTOMERS food, is becoming a widespread concern. Community
organisations manage and maintain water collecting
Your Bank provides banking services to a varied base of
systems in Banki block, Cuttack district, Odisha to
business owners, self-employed / small businesses for
ensure year-round cultivation and sustainable livelihoods
example – Commodity Trader, Gold Trader, Vegetable
for themselves and the next generation. The project’s
Trader, Commission Agent, Retailer, Restaurant Owner,
impact includes the creation or restoration of 6 water
Caterer, Baker, Vending Machine Supplier, Consultant,
harvesting structures, impacting 40,615 beneficiaries, with
Doctor, Contractor, Interior Decorator, Software Designer,
an estimated 18 Crore liters of water storage capacity,
Salon, Beauty Parlour, Printer, Electrical Engineer, Saw
benefiting 2,140 acres of irrigated land, and creating
Mill, Flour Mill, Rice Mill, Grocery Store, Brick Maker,
approximately 4.75 lakh square feet surface area by way
Builder, Fabricator, Artist, Writer, Auto Repair, Ship Repair,
of ponds and tanks. Within the communities, we are
Pharmacy, Computer Specialist, Furniture Maker, Uniform
promoting, building capacity for resilience to climate

Annual Report 2022-23 | 31

DCB Bank Limited

change. For the Livelihood Improvement Project in Banki, in the branch catchment area. To remain competitive, the
the DCB Bank CSR project has been recognized by Bank is particular about the quality and timeliness of
Asiamoney as India’s Best Bank for CSR 2022. Moreover, service delivery. The Bank has a wide range of products
DCB Bank CSR project has been recognized by Euromoney that caters to the various needs of the customers.
as Market leader CSR (Notable) 2022.
Fixed Deposits
DCB Bank won the Gold in ACE (Asian Leaders Awards
for Branding, Marketing, and CSR) 2022. The Bank’s CSR Your Bank continues to be amongst the top banks in
partnership project of Livelihood Improvement Project India in terms of offering attractive interest rates in both
(LIP) through Integrated Watershed Management in Banki, Savings Accounts and Fixed Deposits. In FY 2023, the
Odisha in collaboration with Concern India Foundation Bank continued to build its granular deposits by offering
for water conservation and restoration won the Best attractive benefits and interest rates in Savings Accounts
Corporate (Non-profit Partnership category). and longer tenor Fixed Deposits. In Fixed Deposits, the
Bank has two unique propositions - DCB Suraksha Fixed
Human Resources (HR) Deposit and DCB Health Plus Fixed Deposit. DCB Suraksha
Fixed Deposit provides free Life Insurance coverage up
Your Bank continues to be recognized as a Great Place to `10 lakh and DCB Health Plus Fixed Deposit provides
to Work (GPTW) Certified organization for building a a basket of health benefits like free consultation with
High Trust, High Performance Culture. The Bank has been doctors, reimbursement of pharmacy expenses and
recognized as Top 40 India’s Best Workplaces in Health ambulance services. The Bank has also started offering
& Wellness 2022 and has been featured amongst Top 50 Non-Callable Fixed Deposits for retail customers (below
Best places to work in BFSI, both recognitions have been ` 2 Crore) to boost the retail deposit growth.
conferred by GPTW.
The Bank’s Savings Account and Fixed Deposit book
Information Technology (IT) recorded a growth of 23 % and 19 % respectively over the
FY 2022. The top 20 deposits ratio, which was at 6.31% at
During FY 2023, your Bank has participated in various
start of the year, slightly increased to 6.96 % at the end
events and has been recognized and awarded.
of FY 2023.
• DCB Bank won 3rd Annual BFSI Technology
Mortgage and Micro Mortgage Loans
Excellence Awards 2022 for Blockchain Initiatives-
automated process for ATM cash replenishment. Mortgage is the prime lending product for the Bank and
is contributing more than 50% of the Bank’s Advances
• DCB Bank won 7th Banking Frontiers Finnoviti
book. As part of the Mortgage business, the Bank offers
Awards 2022 for Social Command Center that helped
both Home Loans and Business Loans to self-employed
the Bank in tracking posts more real-time with far
and salaried segments in the neighbourhood areas of the
better turnaround times.
Bank’s branches. The purpose of these loans, inter alia,
BRANCH EXPANSION / ATMs are property purchase, home improvement, home repairs,
business requirements (purchase of plant and machinery,
The number of branches, as on March 31, 2023, stood purchase of stocks, purchase of shops, working capital)
at 427 [233 Retail branches and 194 branches in Agri and personal expenses such as education, marriage or
and Inclusive Banking (AIB)]. Of these, 80 branches are medical. Micro or small ticket Mortgages are most suitable
in rural areas (approximately 19%) and 108 branches in Tier 2 to Tier 6 locations. Many people in the rural
are in semi-urban areas (approximately 25%). The new and semi-urban areas derive cash income from informal
branches have a standard look and feel; and they are sectors or trades. At times, many customers do not have
designed to provide a unique, positive, and seamless sufficient documents to prove their income / repayment
banking experience to customers. The Bank had 396 capacity for obtaining loans. The Bank has demonstrated
ATMs as on March 31, 2023. the ability to assess the household income for such
customers by adopting a method of in-depth personal
RETAIL BANKING discussions with the borrowers and co-borrowers. Apart
from creating a robust portfolio, the Bank has been able to
Retail Banking offers unique products for meeting financial achieve financial inclusion goals. Most of these micro loans
needs of individuals and businesses. The Bank follows a qualify under the Priority Sector Loan (PSL) norms of the
multi-product approach which results in “all products RBI. A part of the Bank’s portfolio qualifies for long term
being offered in all branches” subject to customer demand

32 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

refinance from National Housing Bank (NHB). This enables the Bank to deepen customer relationships in
addition to increasing fee income.
The Mortgages business expanded very well during the
year with increased sourcing from the selected segments Traditional Community Banking
and more focus on home loans. The Bank increased its
distribution in the Mortgage business by adding frontline In FY 2010, with a vision of strengthening neighbourhood
headcount and expanding geographic presence. banking, the Bank set up a separate vertical to focus
on Traditional Community Banking. The aim was to
Construction Finance (CF) address the specific needs of the vintage neighbourhood
community customers and to provide personalized
The construction sector is an important contributor to solutions wherever possible. This perhaps is the purest
the growth of the economy. Affordable housing in both form of neighbourhood banking and is directed towards
rural and urban areas is one of the key thrust areas for addressing small credit needs such as education, personal,
the Government of India. The implementation of Real business and working capital.
Estate Regulation & Development Act, 2016 in most
states, has brought in much needed transparency in this Non-Resident Indian (NRI) business
sector, creating favorable conditions for home buying and
financing. The Bank’s approach is to focus on reputed In FY 2023 there was greater focus on growing the NRI
builders with a strong track record of delivery who are deposit base as customers were able to travel to India
primarily concentrating in the affordable and mid-segment after Covid-19 disruptions. NRI Savings Account balances
housing segment. At the same time, the strategy is to be grew by 20% and FCNR (B) deposits grew by more than
cautious and limit exposure per builder / project. The Bank 70% during the year. The Bank has NRI customers from
has established processes to monitor sales, collections 128 countries and it contributes to 8.55% of total customer
and utilization of funds towards project completion. In FY deposits.
2023, the country witnessed many new projects launches
Government business (Collection of Direct and
resulting in strong buying in the affordable and mid-
Indirect Taxes)
segment housing units across most of the geographies.
The Bank expects sizable opportunity in lending to The Bank has been authorized by the Reserve Bank of
affordable and mid-segment housing projects. India, Central Board of Direct Taxes (CBDT), Central Board
of Indirect Taxes and Customs, Controller General of
Commercial Vehicle (CV) Loans
Accounts and Ministry of Finance to collect various kinds
The Bank offers CV Loans to existing customers. Most of of Direct and Indirect Taxes. After technology integration,
the CV portfolio is categorized as PSL. During difficult DCB Bank account holders will be able to pay their Direct
Covid-19 pandemic, the Bank supported CV customers on and Indirect Taxes through Internet banking as well as at
a case-to-case basis by offering regulatory packages and branches, resulting in significant ease and convenience.
Emergency Credit Linked Guarantee Scheme (ECLGS). Non-account holders will be able to avail of the services at
branches. The Bank expects to make collection of Direct
Loan against Gold Taxes available in the first quarter of FY 2024. In terms of
collection of Indirect Taxes, the Bank expects the same to
Loan against Gold is offered in most of the branches of be available in the second half of FY 2024.
the Bank. The Bank has focused on improving customer
experience and service by continuously investing in process COLLECTIONS AND RECOVERIES
improvements through in-housing of valuation process and
significant overhaul of the front-end system used for loan The Bank’s in-house Collections unit is a common utility
processing. Most of the verification and validation processes for all products and is present in more than 304 locations
have been automated leading to faster turnaround and across India. The Collection unit played a vital role in
improved customer experience. The Bank has invested in assisting customers in a sensitive manner during and
improving controls in order to avoid operating errors and post Covid-19 including management of the Restructured
fraud losses. Advances. The unit has also been very proactive in
identifying vulnerable customers and offering them
Insurance and Mutual Funds Distribution suitable solutions within RBI guidelines. Despite the
challenges posed by Covid-19, the unit has managed to
The Bank has corporate agency tie-ups for distribution of balance its customer-centric approach with maintaining
life insurance, health insurance and general insurance. The adequate risk management practices. The unit also
Bank also has referral tie ups for mutual fund distribution. embraced automation to streamline loan collections

Annual Report 2022-23 | 33

DCB Bank Limited

and improve customer experience. The unit has enabled Trade Receivables Discounting System (TReDS)
self-service options, allowing customers to initiate and Alliances
manage their repayment through digital channels. The
unit’s use of technology has contributed significantly to Name of the Partner Type of arrangement
its success in managing overall portfolio with improved Mynd Solution Private Lending on TReDS
Non Performing Asset (NPA) while maintaining a Limited (M1xchange) Platform
customer-centric approach. Receivables Exchange of Lending on TReDS
India Ltd (RXIL) Platform
STRATEGIC ALLIANCES
A. TReDS Limited Lending on TReDS
One of the key strategies of the Bank is to enter alliances (Invoicemart) Platform
with entities whose products and services enable the
Bank to improve customer acquisition and retention. CORPORATE BANKING (CB)
Apart from new and enhanced products, the alliances The Bank’s intention is to have a niche presence in Corporate
help in speed to market. Banking. This business operates across India with regional
offices in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad,
The various strategic alliances and business association
Kolkata, and Mumbai. The objective is to provide a complete
of your Bank are given below:
range of commercial banking solutions including Foreign
Bancassurance Exchange, Trade Finance and Cash Management. The Bank
has a robust underwriting and credit system to address the
Name of the Partner Type of arrangement inherent risks in Corporate Banking. The emphasis is on
building a secured loans portfolio and creating long term
Aditya Birla Health Corporate Agency for
relationships with high quality large and mid-corporates.
Insurance Company Ltd insurance sales
Corporate Bank during the year maintained a stable loan
Aditya Birla Sun Life Corporate Agency for book while continuing to build on the short-term products.
Insurance Company Ltd insurance sales This unit is also responsible for cross-selling other products
HDFC Life Insurance Corporate Agency for of the Bank including raising wholesale Deposits thereby
Company Ltd insurance sales being self-reliant and enabling to maintain a healthy mix of
ICICI Lombard General Corporate Agency for retail to wholesale deposits across diverse industries. The
Insurance Company Ltd insurance sales momentum is likely to carry on in the coming years with the
unit leveraging on existing customers as well as focusing on
Royal Sundaram General Corporate Agency for
adding new customers to the Bank. The unit added 74 new-
Insurance Company Ltd insurance sales
to-bank customers across different products in FY 2023.

Service Partners The intensity and frequency of regular review of exposures

continued enabling identification of emerging risks in
Name of the Partner Type of arrangement a timely manner. The focus is to continuously improve
understanding of the borrower’s business/prospects,
Euronet Services India ATM and Switch
ensuring right mix of products, enhance analytics, strong
Limited Management
promoter connect, cash flow understanding and tracking.
Aditya Birla Finance Ltd. Lending Business
MSME & SME
Fintech Alliances
Your Bank’s core target segment is MSMEs/SMEs. It is a large
Name of the Partner Type of arrangement and vibrant sector. It is the backbone of our economy. This
Finnew Solutions Private Global Niyo Card segment which was unfortunately affected due to Covid-19
Limited (Niyo) Management pandemic is now clearly showing positive signs of growth
and rebound. The Bank strives to be the business partner
Greenizon Agritech Agri Supply Chain of MSMEs/ SMEs by offering custom made solutions to
Consultancy Private Financing Business meet the credit demand of the segment. The Bank offers
Limited a range of products and personalized services including
Dvara E Registry P Agri Farmer Loans Foreign Exchange, Cash Management, Trade finance and
Limited Business Internet Banking. Given the inherent risks associated with this
Ninjacart P Limited Agri Supply Chain segment the Bank aims to have large portfolio of small ticket
Financing Business secured exposures.

34 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

AGRI AND INCLUSIVE BANKING (AIB) at providing adequate and timely credit support to the
farmers for crop cultivation and allied activities. Under
AIB is a separate unit with the primary objective of the KCC program, the Bank offers Cash Credit/Overdraft
achieving financial inclusion, PSL and enhancing the to farmers for purchasing seeds, fertilisers, pesticide for
Bank’s footprint in the rural and semi urban areas. At the crops cultivation and Term Loan facilities for land levelling,
end of FY 2023, AIB had 194 branches in 13 states of India. irrigation and purchasing farm equipment.
There are many opportunities to offer simple innovative
products backed by superior technology in the rural and Tractor Loans
semi urban areas of India. Many of the new branches are
in Tier 2 to Tier 6 locations. There is a constant endeavor Tractor Loans are an integral part of the total agricultural
to cater to underbanked and unbanked population of the equipment sector and is a direct indicator of growth in
country through a wide range of products, for example, the agricultural sector. The Bank has steadily built its
zero balance savings account, small recurring deposit business across Tier 2 to Tier 6 branches. Tractor loans
account, small loans to match the income and cash flow helps the Bank to partly meet PSL targets for agriculture
cycle. AIB also coordinates the entire PSL efforts for and small and marginal farmers set by the RBI. The
the Bank and is primarily responsible for achieving the Bank has benefited small and marginal farmers in farm
financial inclusion targets. mechanization improving their yield and allied income.

Pradhan Mantri Jan-Dhan Yojana (PMJDY) Microfinance Institutions (MFIs) and Business
Correspondents (BCs)
In FY 2023, the Bank actively participated in PMJDY
program. The Bank had 39,908 PMJDY accounts as on The Bank lends to MFIs who in turn lend directly to end
March 31, 2023. The Bank has enabled Rupay Debit Cards borrowers. Over time, the Bank has created a network of
for PMJDY account holders. MFI relationships across India. In a few states of India, the
Bank has provided Joint Liability Groups (JLGs) unsecured
Pradhan Mantri Suraksha Bima Yojana (PMSBY), loans through BCs to promote economic activities. Group
Pradhan Mantri Jeevan Jyoti Bima Yojana loans from the Bank has enabled unprivileged customers
(PMJJBY), Atal Pension Yojana (APY) to avail small loans from the banking sector instead of high-
cost borrowing from money lenders. These loans are usually
The Bank successfully reached out to unbanked and provided to small farmers and weaker sections mainly in
economically weaker population through PMSBY, PMJJBY rural areas. To support the growth, the Bank has an efficient
and APY programs that are designed to bring social software system for managing BC Loans. This software helps
security. Your Bank had 5,400 customers under PMSBY, maintain adequate information about the borrowers under
2,628 customers under PMJJBY and 7,153 customers in JLGs. It provides a common platform for both, the Bank and
APY as on March 31, 2023. the BCs for seamless processing of loans and has added
immense value by reducing the loan disbursal cycle time.
Basic Savings Bank Deposit Account (BSBDA)
School Finance Loans
BSBDA has replaced “No frills account”. This is a
wonderful product for achieving financial inclusion The Bank has a lending programme for the education
especially for those who have limited transaction needs segment by providing loans to schools for infrastructure
in the low-income group. The Bank had 44,945 BSBDA development which helps to impart quality education
accounts as on March 31, 2023. to students. The Bank provides loans based on the
requirement of schools. Funding is done basis the audited
Kisan Mitra financials and/or the cash flows. This product helps the
Bank to cater the education segment and boost the social
“Kisan Mitra” as the name suggests, is a deposit product, infrastructure development of the country.
which fulfils the requirement and enhances the savings
habit in rural areas. It is a product specially designed CO-LENDING PARTNERSHIPS
for farmers. It is a modified Savings Account with zero
account opening amount and no maintenance charges. Co-lending is a unique concept enabled by the RBI.
The Bank’s intention is to partner with Non- Banking
Retail Agriculture Loan and Kisan Credit Card Financial Sector Companies (NBFCs) that may be
offering products not currently offered by the Bank or
To meet the credit needs of the farmers, the Bank has segments not served by the Bank. Further, the Bank
retail agriculture products like Kisan Credit Card that aims has established Co-Lending Partnerships with four new

Annual Report 2022-23 | 35

DCB Bank Limited

partners in FY2023 and thereby taking the total to six DCB Internet Banking is used by more than 70,000 retail
active Co-lending partnerships as on March 31, 2023. Co- and corporate customers. Internet Banking platform is rich
lending has also contributed significantly to the Bank’s with plethora of digitally managed services, which has
overall advances growth. reduced the need for customers to visit branches for their
transactions.
ALTERNATE CHANNELS AND DIGITAL BANKING
DCB Unified Payment Interface (UPI)
Phone Banking
UPI continues to be the dominant channel for digital
In FY 2023, the Bank’s Customer Care Associates attended payments, and the transaction volumes have registered a
to approximately 75,000 calls per month and 13,000 calls growth of 90% over the previous year.
per month are self-serviced on Intelligent Interactive Voice
Response (IVR). The Bank has invested in technology and DCB Debit Cards
infrastructure to take customer service to new heights. It
has implemented self-service options through “IVR” which The Bank focusses on constantly improving offerings,
allow the customers to access their account easier than features, and security on Debit Cards. Your Bank
before. Moreover, the Bank has also implemented a range launched a new Debit Card variant, DCB TravelSmart,
of new customer-centric policies, designed to ensure that which is beneficial for international travellers as it offers
the customers receive the best-in-class service from the a competitive foreign exchange mark up, as well as
Bank. To provide uninterrupted service and load balancing, complimentary travel insurance. The Bank also introduced
the Bank has trained its branch staff to take phone banking much sought after features like contactless payment
calls that are diverted to the branches using a unique (Tap and Pay) and e-mandate for ease of recurring
technology solution. This has in some ways redefined call payments. From security and control perspective, the
centre and customer service in the industry. Bank has introduced instant response to customers for
failed transactions, as well as tokenisation which enables
The Bank has ensured that its Customer Care Associates transactions with masked card details for better safety.
can interact with the customers in 8 languages (English,
Hindi, Gujarati, Kannada, Marathi, Odiya, Tamil and Telugu). DCB Niyo Global Cards

Adoption of new technology, load balancing, multi skilled DCB Niyo Global Card is a Debit Card powered by Visa
officers, regular intervention by the training team inter alia and issued with DCB Niyo Current Account. This program
has enabled the contact centre team to provide timely is segmented especially for customers travelling abroad
and quality service to the customers. DCB Contact Centre which provides competitive exchange rates making the
unit has achieved 16% better productivity in comparison product a compelling proposition. The Card holders are
with pre Covid-19 and conscious efforts put in people offered a Mobile Application which supports security
management, knowledge enrichment has resulted in features such as switching on or off card usage, changing
disposing customer queries 15% quicker while improving transaction limits and block or unblock the Card.
quality of service.
Trade Receivables Discounting System (TReDS)
ATMs
In FY 2022, the Bank commenced participation on TReDS,
The Bank has 396 ATMs as on March 31, 2023. The Bank a unique digital capability that provides assured and faster
ensured that ATM uptime was maintained at above 94% financing to MSMEs / SMEs who are providing goods and
in the FY 2023. The Bank has closed a few unviable services to larger companies. TReDS is improving flow of
and unprofitable ATMs during the year. The Bank has finance to MSMEs / SMEs. The Bank has financed more
completed the implementation of cassette swap in ATMs than 10,000 MSMEs through 18,000+ Invoices in TReDS
and OTC lock activation in all the 396 ATMs. platform in FY 2023. Financing on TReDS also qualifies
as PSL.
DCB Mobile and Internet Banking
TRANSACTION BANKING
Approximately 1,40,000 of the Bank’s customers are
actively using the new and improved Mobile Banking Cash Management Services (CMS)
Application that is offered in 9 languages. Your Bank
The Bank provides Corporates, MSME/SME and Retail
continues to get encouraging feedback on Google Play
customers sophisticated and cost-effective CMS. This
Store. The new version has additional features like biometric
helps customers manage their collection and payment
based login and Debit Card control management.
logistics with ease. The Bank has 7 vendors for CMS

36 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

cheque collections across India. At the end of FY 2023, interest rates and maintained hawkish policies to control
the Bank had 3,300 active customers using CMS facilities. inflation. The International Monetary Fund (IMF) and
World Bank predicted a downward trend in global growth
Business Internet Banking (BIB) because of policy actions by central banks.

The Bank offers state of the art BIB especially designed The US Federal Reserve increased its benchmark interest
for MSME/SME customers. The adaptive and responsive rate from 4.75% to 5.00%, which caused a surge in global
feature of the application makes it user friendly for securities yields and the USD index to reach their highest
customers across devices. At the end of FY 2023, BIB levels. The USD Index reached 114 against a basket of six
facility had 32,615 users. major currencies, and US 10YT almost touched 4.30%.
Commodity prices experienced significant fluctuations
TREASURY, MONEY MARKET AND FOREIGN
over the course of the year. Initially, due to geopolitical
EXCHANGE
tensions, crude oil prices reached a peak of $125 per
Treasury barrel, but later dropped to $70 per barrel because of the
global economic slowdown, particularly in China, brought
Treasury actively manages liquidity, compliance with on by Covid-19 related restrictions. However, unexpected
Cash Reserve Ratio (CRR), Statutory Liquidity Ratio output cuts from Organization of the Petroleum Exporting
(SLR), trading in fixed income securities & currencies, and Countries (OPEC+) resulted in a rise in prices, and by the
participating in Initial Public Offers (IPOs). It also shares end of the financial year, Brent Crude oil was trading at
the responsibility of interest rate risk management of the $85 per barrel.
Bank. In FY 2023, the Bank was cautious in maintaining
fixed income securities as central banks across the globe The Indian Rupee depreciated by nearly 8% against the
were increasing interest rates in response to inflationary US Dollar due to geopolitical tensions, increased interest
pressures. Yields on bonds across the world rose sharply rates, and global recession fears. However, the RBI
thereby negatively impacting the bond portfolios. The measures limited excessive volatility and slowed down
Bank selectively invested in equity IPOs and booked the pace of Rupee’s depreciation, which helped Indian
profits by way of listing gains. rupee to perform better than several other currencies.
Despite the volatile USD index caused by the financial
Money Market crisis in the US banking system, the Indian Rupee
demonstrated resilience by gaining 0.7% against the US
Tightening in global policy has been accompanied by Dollar in the last quarter. By the end FY 2023, the Indian
a deceleration in global money supply growth. Recent Rupee closed at 82.18 to a dollar, which is weaker than the
earnings have continued to moderate corroborating a 75.79 rate recorded a year ago. Looking forward, the US
growth slowdown. While slow growth could be headwind Federal Reserve may consider further interest rate hikes,
for risk assets, it may also help alleviate the inflation but market predictions suggest that the rate hike cycle
challenge. As inflation moderates, expect part of the may approach its peak soon.
economy to recover even as exports driven sectors face
headwinds. RBI started increasing policy rates in the RISK MANAGEMENT
month of May 2022. Domestic bond markets have tracked
the global yield curves since the onset of the US and Risk is an integral part of the banking business and the
European banking crisis. At the same time, bond yields Bank’s aim is to maintain portfolio quality by making
across most of the developed markets have substantially appropriate risk/reward trade-offs. The Bank inter alia
retraced the easing seen since July 2022, in a flattening is exposed to credit, concentration, market, country and
trend. Repo Rate has been increased from 4.40% in May counterparty bank exposure, liquidity, operational, fraud
2022 to present level of 6.50%. and reputation risk. The Board of Directors of the Bank
has oversight of risks assumed by the Bank and has
Foreign Exchange delegated its power to manage risks to Risk Management
Committee (RMC) of the Board.
During FY 2023, the global financial market encountered
numerous challenges, including geopolitical tensions, Credit Risk
banking crisis, recession fears; and higher interest rates,
resulting in high volatility in major currencies. Major central The Credit Risk unit ensures alignment with the objectives
banks such as US Federal Reserve System, European of achieving growth while maintaining portfolio quality
Central Bank (ECB); and Bank of England (BOE) increased by making appropriate risk / reward trade-offs. The idea

Annual Report 2022-23 | 37

DCB Bank Limited

is to ensure long-term sustainable performance across Liquidity Risk

business cycles. On-going efforts are made to improve
risk assessment and controls. Credit Risk over time has As part of the liquidity management and contingency
developed capabilities to assess the risks associated planning, the Bank assesses potential trends, demands,
with various products and business segments. As far events and uncertainties that could result in adverse
as possible, efforts are made to standardize the entire liquidity conditions. The Bank’s Asset Liability
process pan India while considering geographic nuances. Management (ALM) policy defines the gap limits for the
The Bank has implemented a rating model that considers structural liquidity and the liquidity profile is analysed
both quantitative and qualitative factors and produces on both static and dynamic basis by tracking cash
a rating that becomes one of the key inputs to credit inflow and outflow in the maturity ladder based on the
decisions. To continuously improve the quality of the expected occurrence of cash flow. The Bank undertakes
portfolio, the Credit Risk unit uses SAS analytics and has behavioural analysis of the non-maturity products,
created several insightful models that helped in refining namely CASA, Cash Credit and Overdraft accounts on
the product offering, choosing the target segment of a periodic basis to ascertain the volatility of balances.
customers, collections and recoveries. Key processes The renewal pattern and premature withdrawals of Fixed
in credit underwriting were examined and duplication Deposits and drawdowns of un-availed credit limits are
was reduced to improve speed of processing. Periodic also captured through behavioural studies. The liquidity
portfolio reviews were conducted with the business units profile is estimated on an active basis by considering
that helped improve portfolio quality. the growth in Deposits, Advances, and Investment
obligations. The concentration of large deposits is
Concentration Risk monitored on a periodic basis. Emphasis has been placed
on growing Retail Deposits and avoid as far as possible
Concentration risk is monitored and managed both at Bulk Deposits. The Bank periodically conducts liquidity
the customer level and at the aggregate level. The Bank, stress testing.
inter alia, monitors portfolio concentrations by segment,
product, business, ratings, borrower, group, sensitive Operational Risk
sectors, unsecured exposures, industry, and geography.
The Bank adopts a conservative approach within the Operational Risk is the risk of loss resulting from
regulatory prudential exposure norms. inadequate or failed internal processes, people or
systems, or external events. The Bank’s operational risk
Market Risk management framework is defined in the Operational
Risk Management Policy approved by the Board of
The Bank has an established process to measure, monitor Directors. While the policy provides a broad framework,
and manage Interest Rate, Exchange Rate and Equity Operational Risk Management Committee (ORCO)
Risk as part of Market Risk Management. Besides the oversees the operational risk management in the
usual monitoring of Structural Liquidity, Interest Rate Bank. The policy specifies the composition, roles, and
Sensitive Gap limits and Absolute Holding limits, the Bank responsibilities of the ORCO. The framework comprises
also monitors interest rate risks using Value at Risk limits. identification, assessment, management and mitigation
Exposures to Foreign Exchange and Capital Markets of risks through advanced tools and analysis.
are monitored within pre-set exposure limits, margin
requirements and stop-loss limits. Reputational Risk

Country Exposure Risk and Counterparty Bank Risk The Bank pays attention to issues that may create
reputational risks. Events that can negatively affect the
The Bank has established specific country exposure limits Bank’s reputation are handled cautiously ensuring utmost
which is capped at 15% of its Capital Funds. The limit also compliance and in line with the values of the Bank.
depends upon rating of individual countries. The Bank
mitigates risks using insurance cover available through Information / Cyber Security Risk
the Export Credit and Guarantee Corporation (ECGC),
where appropriate. The Bank operates in a highly automated environment
and makes use of the latest technologies to support the
The Bank has established framework for setting up of business and functions. The Bank has put in place a robust
limits for counterparty banks, basis their rating and governance framework, information security practices and
monitors counterparty bank exposures against the a business continuity plan to mitigate IT and cyber security
approved limits. related risks. The Bank ensures that it’s information and

38 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

cyber security policies are updated periodically to ensure devices. It enables quick and seamless investing in
protection of customer sensitive information, transaction mutual funds, facilitates automatic payments, and
integrity, availability of banking services and be resilient provides up to date information to customers on
to emerging cyber security risks. The Bank has a 24x7 their portfolios.
Security Operations Centre to monitor security alerts and • The online platform inter alia comes with several
take timely appropriate actions. attractive features such as no registration fees
and transaction charges, easy mutual funds
Process Review
selection options to invest in products of
The Bank strives to continuously improve process controls reputed Asset Management Companies (AMCs),
and customer satisfaction. The Bank has a separate cross access to risk ratings and factsheets of all the
functional committee – Management Committee for funds, online uploading of Know your Customer
Approval of Processes (MCAP). In general, new processes (KYC) documents and facility to download
are subjected to review by MCAP. The Committee is tasked National Securities Depository Limited (NSDL)
with identifying operational and compliance risks in new consolidated account statement.
processes and ensuring that steps are taken to mitigate 2. My Documents Portal
risks. Also, MCAP regularly reviews and approves existing • A secure platform designed to streamline
processes for further improvement. In the FY 2023, 79 communication with customers. This user-friendly
processes were reviewed and approved by the MCAP. portal is the go-to source for all relevant documents
and communications related to customers.
IMPLEMENTATION OF BASEL III GUIDELINES
• Customers can access their documents from
In accordance with the RBI guidelines, the Bank has anywhere, at any time, after a secure authentication
migrated to Basel III capital adequacy disclosures with process. By centralizing all essential documents and
effect from Q1 FY 2014. The Bank continues to review communications in one easily accessible location,
and improve its risk management systems and practices My Documents Portal enhances transparency
to align with industry best practices. The Bank has and simplifies the customer experience. From
implemented Standardized Approach for Credit Risk, welcome letters to account statements, everything
Standardized Duration Approach for Market Risk and is available in one convenient location, making it
Basic Indicator Approach for Operational Risk. easier than ever for customers to stay up to date.
• New documents uploaded are communicated
INFORMATION TECHNOLOGY (IT)
to customers through SMS and e-mail on the
Once again, FY 2023 has seen increased focus on registered mobile number and e-mail address.
digital technologies for banking needs. Accordingly, the 3. Zippi+
Bank inter alia is looking forward to adopting emerging • Paperless and end-to-end digital Savings Account
technologies like Artificial intelligence (AI) / Machine and Fixed Deposits Account opening application
Learning (ML), Blockchain, Internet of things (IoT), Edge that has a wide range of products (DCB Premium
Computing, Robotic Process Automation, Application Savings, DCB Privilege, DCB Classic Savings Bank
Programming Interface (API) Banking, Metaverse, Accounts) and other options.
Conversational Banking, and Big Data. By embracing
4. Video Based Personal Discussion for Credit Team
aforesaid technologies, the Bank aims to offer its
customers futuristic services and newer business models • Online validation of applicant’s identity,
while achieving operational excellence. Implementation of documents, mobile number or e-mail id.
these technologies will also enable the Bank to automate • Improved turn-around time and can be done at
customer interactions, enhance the security and offer customer convenience.
personalized services based on real-time data, and create • GPS validation of applicant’s location.
new ways of engaging with customers.
5. Issuance of Contactless Card
Following were some of products/features launched in • The contactless (Tap & Pay) features enabled for
your Bank during FY 2023: DCB Visa Debit Cards.
• DCB Debit Contactless Visa cards is accepted by
1. DCB EazyBee Online Mutual Fund
leading merchants in India.
• DCB EazyBee is a paperless and user-friendly
platform that is accessible via desktop and mobile

Annual Report 2022-23 | 39

DCB Bank Limited

6. CUBE - digital end-to-end branch application for • Insurance policy and coverage commences from
customer on boarding of deposit products the next business day.
• Over 1 lakh customer accounts opened via CUBE, • Minimum manual intervention.
online interfaces with NSDL, Aadhaar etc for 11. Intelligent Interactive Voice Response (IVR)
instant verification
Interactive Voice Response (IVR) technology offers
• Turnaround time and errors have been customers self-service options with DTMF (such as
substantially reduced with the introduction of landline or mobile phone dial pad keys) tones input.
CUBE. In addition to identification and segmentation of
7. Customer Service the callers, it also facilitates the routing of customer
• Customer self-service, in-branch kiosk enabled for calls to the most appropriate customer care/ service
real time KYC up-dation by existing customers of resource at the Bank’s Customer Care centre. .
the Bank. • Preference for calls based on the customer’s
• Customer login for KYC verification enabled requirement for example, a customer call for
via valid DCB Debit Card and PIN or biometric a debit card emergency will be allocated to a
authentication via Aadhaar/Virtual ID (VID). customer care representative with the appropriate
expertise.
• Biometric authentication in branches using kiosks.
• DCB Bank Loan Repayment Collection via • Based on the registered mobile number, the
Payment Gateway Partner & Bharat Bill Payment system will identify the customer and, accordingly,
System (BBPS) the call will get transferred to the correct customer
• Dispatch Management Solution implemented for care associate.
end-to-end tracking of deliverables.
• For calls received via non-registered mobile
• DCB Travel Smart Debit Card - travel worldwide numbers an OTP validation option for customer
without any hassle of currency conversion. verification has been provided.
• Customisable kit for Loan disbursal including
agreements/policies. 12. Enhancement of UPI Transaction limit for specific
categories
• Branches can offer higher limits for Personal
Internet Banking and Mobile Banking to select • DCB Bank customers can make ASBA payments
customers. up. to ` 5 lakhs per IPO

• Declined Debit Card transactions instant alert via 13. Customer Investment Declaration form (CIDF)
SMS to customers. enhancement for the customer
8. DCB Mobile Banking • Digital journey for Customer Investment Declaration
• Save and manage favourite transactions. Form for third-party product distribution
• EMI calculator for loans.
14. Mortgage Sales Support Application
• Event based and personalized notifications.
• Tracking leads and monitoring appointments and
• Multilingual - 9 language options. activities
• Biometric authentication. • Product details
• Positive pay functionality. • Monitor frontline productivity and performance.
• Failed login alert to customers..
BUSINESS INTELLIGENCE UNIT (BIU)
9. Internet banking Enhancements
• DCB Suraksha Fixed Deposit functionality in The core objective of BIU is to leverage data analytics to
Personal Internet Banking. drive decision-making and improve business outcomes.
• Financial Year addition in Statement of Account Bank has invested in building modern & scalable data
Module in Personal Internet Banking. & Tech stack in areas of Big Data, Machine Learning
and Deep Learning comprising of an Enterprise Data
10. Automation of Group Personal Accident (GPA)
Lake and GPU servers enabling capability to deploy
Policy Daily Issuance Benefits:
multiple use cases. The Bank’s stack includes Cloudera,
• Enhanced customer experience and significant Hadoop, Kafka, SAS Viya, R, Python and Spark etc. Bank
improvement in turnaround times. has launched a focused BIU transformation project

40 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

D2V which encompasses BI & Analytics uses cases in strengthening of quality checks, process revamp,
self-service MIS, Cross-sell, Revenue & cost efficiency. continuous training of staff including newly recruited
These business cases cover decision enablement across staff and ensuring the staff remain motivated and
customer journeys for both Asset as well as Liability focussed have helped various operations units to provide
products from units across business lines. These projects faster services to customers with zero operational losses
are being initiated across work streams (but not limited and handle increased volumes seamlessly. Grooming
to) to scale up Underwriting, Personalization, productivity next generation leaders and creating second line leaders
optimization & Data driven collection. across various unit continues to be a key focus area along
with efforts for further automation and improvements in
OPERATIONS productivity.

Operations unit’s continuous endeavour to improve INTERNAL AUDIT

efficiency and offer best in class services to customers
continues to remain as the primary objective. During the Internal Audit (IA) function has employees with varied
year, there has been unprecedented growth in volumes domain background and experience across Banking
across every unit and some of the units like Centralized operations. It has a mix of Chartered Accountants and
Payments Centre and Clearing units operate 24/7 to domain/technical experts and veterans. The IA team
cater to the customer needs. The focus on automation comprises of freshers, experienced bankers and specialists.
and improvements in productivity are yielding desired IA function reports into the Audit Committee of the Board
results as the growth in volumes and 24/7 operational (ACB) which constitutes members with strong domain
shifts are managed without any significant increase in and audit knowledge. ACB oversees the IA function,
headcount and/or costs. monitors performance, and provides regular guidance
for improving risk control and compliance across the
The new state of the art customer onboarding platform Bank. In FY 2023, IA adopted different models for audits
CUBE that was implemented two years ago to support which included extensive use of data analytics, document
operations at National Processing Centre (NPC), was verification, testing of design and effectiveness along with
further enhanced during the year to make it more walkthrough. The IA team makes use of various tools for
robust, faster, resilient and offer more functionalities. The analysis in the audits like SAS. In FY 2023, IA conducted
number of applications processed on CUBE crossed the 186 branch audits, 46 periodic audits and 12 IT audits. IA
magic number of 100,000 during the year. About 86% team members attended multiple online and in person
of the account opening forms duly submitted on CUBE training programmes in various domains including audit
application by branches, are processed and customer’s framework / methodology, soft skills, risk management
accounts opened by NPC within the same day against an and Banking, for continuous enhancement of knowledge
average of about 5 days prior to implementation of CUBE and skills.
thus providing superior and faster customer experience.
VIGILANCE
Centralized Payments Centre (CPC) which caters to all
customer payments processing like RTGS/NEFT, CMS In line with previous years, the Fraud Risk Monitoring
payments, and electronic banking transactions on 24/7 (FRM) unit has enhanced the fraud detection and
basis, handled about 208.20 lakh transactions with monitoring capabilities through enrichment of data
zero operational loss during the year. A new innovative points embedded into the monitoring tools. It has also
state of the art NEFT /RTGS technology solution was enhanced the capabilities to identify and address the risks
implemented during the year to support 24/7 services through their assessment methods and investigation. The
and cater to increased volumes. Clearing unit continues unit also identifies learning from industry practices to
to operate on 24/7 basis as well and during the year enhance the capability of the function in the Bank. The
processed 86.78 lakh transactions with zero operational team has been given continuous training on technical
loss. Cash Management Services Unit which provides and functional aspects. The unit continues to have 24x7
cash to branches and ATMs ensured that the average monitoring to enable fraud detection across various
cash holding throughout the year was maintained at 15% channels and transactions.
of the approved limit through proactive management
of cash logistics thus ensuring that idle cash levels were COMPLIANCE
maintained at barest minimum levels.
The Bank’s Compliance function is independent of
Several initiatives taken during the recent few years with business and operation functions. The Compliance
respect to implementation of newer technology solutions, function has created procedures and checks to ensure

Annual Report 2022-23 | 41

DCB Bank Limited

compliance with applicable regulations. In addition and employees underwent through over 3.54 lakh
to ensuring timely submission of various returns to hours of e-learning.
regulatory authorities, the Compliance function ensures • “Olympiad” platform was initiated in FY 2021 to
that the Bank’s internal procedures and processes are in continuously strengthen the culture of assessment
adherence with the applicable regulatory and statutory on critical areas. During FY 2023, the Bank continued
provisions. The Compliance function is also responsible to do product, process, and compliance assessments
for AML / KYC monitoring, the Bank relies on advanced through the “Olympiad” platform.
software and analytics. Within the Compliance function,
• Signature interventions like RISE, ASPIRE and
a separate unit for Compliance Monitoring and Testing
Budding programs under “Grow with Us” umbrella are
has been created to carry out compliance testing on an
being conducted for over 10 years. These programs
ongoing basis. This unit also provides compliance risk
have helped create a talent pool to take up leadership
assessment to various units / functions.
roles within the Bank.
HUMAN RESOURCES (HR) • Capacity building initiatives have been undertaken
through internal and external certification especially
The Bank deeply believes that its employees are the in the areas of risk management and credit. Cyber
driving force for business growth, branding, and customer security programs were conducted for Senior
satisfaction. The employees are an invaluable asset which Management employees with the Institute of
deliver sustainable performance and shareholder value. Development and Research in Banking Technology
The Bank’s HR unit is built on following four pillars: (IDRBT).

Build • Critical employees in branch operations underwent

Gold Loan appraisal workshops which helped them
• In FY 2023, the Bank’s substantially increased
provide quick service to customers at our branches.
headcount especially that of the frontline to create
capacity for stepping up business growth. The Bank • Supervisory capability training continued to be
headcount stood at 9,905 as on March 31, 2023, an driven through the ABCD program which builds
increase of 23% over FY 2022 (headcount 8,077). The foundation for being a good supervisor on four pillars
recruitment team doubled its efforts in hiring through of Appreciation, Building Ownership, Communication
referrals, social media, and career websites. Further, to and Development (ABCD).
provide in-house talent with opportunities, the Bank, in • S-PEAK survey achieved 100% participation from the
FY 2023, provided new assignments through Internal Bank. The objective is to help supervisors reach their
Job Posting to 616 employees (470 in FY 2022). PEAK by deploying various Coaching, Mentoring and
• The Bank continued its flagship B-school competition Developmental plans. Over a learning journey of 6
that has been recognized as one of the best practices months, theme-based training programs are deployed
in the industry. The Bank scaled up its “The Top to improve overall people management Competency
Recruit” program and campus engagement initiatives of 800+ supervisors.
across various regions, covering around 4,000 • Power of Three - Empathy, Speed and Quality (ESQ)
participants from 200 B- Schools in cities like Delhi, is the Bank’s approach and philosophy to customer
Mumbai, Pune and smaller towns in India. The higher service. To enhance ESQ amongst employees, the
participation helped to bolster the brand value of the Bank conducted various Bootcamps, a one-day
Bank amongst the future job seekers. classroom training program with focus on creating
• On Linkedin platform, which is a primary source of delightful customer experiences at every touch point
employer branding and portal for attracting talent, the the Bank. More than 90% of employees were covered
Bank at the end of FY 2023 has over 3.55 lakhs follower’s in the ESQ training programs. Also, to promote ESQ
vis-a-vis 2.74 lakh followers as at the end of FY 2022. on an ongoing basis, a digital platform was created to
recognize and reward notable contributions.
Develop
Care
The Bank continued to provide training through classroom
and e-learning to employees covering key modules like The Bank took special care of its employees by focusing
Ethics, Prevention of Sexual Harassment (POSH), Gender on well-being:
Sensitization, Code of Conduct, Capacity Building • To inculcate the habit of regular exercise and walking,
and AML/KYC. Examples of classroom and e-learning the Bank launched DCB Walkathon Challenge 2022
provided during FY 2023 are as follows: for all employees across India. Over 2,300 employees’
• 1,900 training workshops were conducted internally steps were monitored round the clock. Encouraged by

42 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

the huge participation and enthusiasm amongst the restoration, clean-up of parks, lakes, and other water
employees, the unit extended the challenge from 5 days bodies. This year over 1600 employee volunteers
to 12 days. Within a span of 12 days, 70 million steps participated in CSR activities.
were clocked which equals 58,459 kms or is equivalent • Towards improving the environment, the Bank planted
to 1.5 times the distance of walking around the world. over 1,01,120 trees during FY 2023.
• Health Carnival 2022 was organized across all regional Engage
offices in the month of November 2022 which saw
• The Bank has regional recognition program called
participation from over 3,000+ employees for onsite
“DCB Spotlight” for felicitating top performers in
activities such as health check-up wherein weight,
different regions. This year, the Bank recognized
height, sugar levels, ECG, and blood pressure etc.
over 800 awardees in eleven locations. This event
were checked. Apart from onsite activities, there were
also provides a unique opportunity to employees to
online webinar sessions organized as well, covering
showcase their talent in various areas.
topics such as awareness on diabetes, conjunctivitis;
and ways to keep heart healthy. Discussions were held • The Bank’s annual signature reward and recognition
on nutrition and gastric related issues. ceremony, the Movers & Shakers, was held at NCPA,
Mumbai. Over 100 awardees were felicitated for their
• Doctor on Call service ensures that DCB Bank
performance. The winners of the regional talent hunt,
employees can have access to qualified doctors 24x7
“Funkaar Beats” also competed for the top spot.
by simply downloading a free mobile application
(available on Android and IOS). This application • “Hour HR” (the live radio show), unique communication
facilitates an instant video call with doctors who are platform for the employees to interact with the HR
available for consultation across various fields such team and seniors directly on topics such as managing
as ENT, Ortho, Lifestyle diseases, Physiotherapy, leave, dress code, doctor’s help, promotion process,
Ayurveda, and Dental issues. rewards platform and Mediclaim.

• Leadership and top management team are setting • “Regional Forums” are conducted for leaders to
new examples of conducting self-driven wellness address issues that could be resolved within their
sessions for employees. Recently a yoga session was units through mutual collaboration.
led by the CFO where he shared healthy habits and • The quarterly newsletter, “High Decibel” is a
asanas for living and adapting a healthy lifestyle communication channel where the employees
• Employee loan processing was automated through contribute articles of personal experience and
the Bank’s HR Management System. The transition professional achievements. “High Decibel” is also
to digital application saves significant amount of used for communicating the latest updates, events,
paperwork and reduces cycle time. and happenings in the Bank.

• During the year, emotional well-being assumed • The Bank’s signature employee connect program
great importance for which the Bank drove wellness “Each One Reach One” (EORO) went digital and over
initiatives for employees under its Employee 95% of employees participated. Employees rated
Assistance Program (EAP) wherein assistance was their satisfaction with respect to job, supervisor, work
provided for psychological / mental health. environment and career aspirations. The Bank initiated
interventions and focus group discussions to address
• The Bank negotiated a more comprehensive
employee issues and receive their suggestions for
Mediclaim plan this year for its employees where
improvements.
inter alia Intensive Care Unit (ICU) charges at actuals,
genetic disorders and waiver of co-pay in case of an • The Bank continued the “EORO Supervisor Survey”
unfortunate demise of employee and / or dependent for first time supervisors. The feedback was with
were included. reference to approachability, helpfulness, care,
development, and their alignment with the team.
• The Bank also conducted special programs for
Counselling was completed for those supervisors
supervisors to monitor and report instances of poor
who had a low score.
mental health amongst their team to facilitate timely
intervention. The Employee Assistance Program • In its effort to attract talent and boost the internal
(EAP) partner, 1 to 1 help explained reasons for stress branding, various initiatives have been taken. The
and encouraged supervisors to help employees to Bank launched “MANCO Bytes” (MANCO denotes
seek counselling. Management Committee) series where the senior
leaders spoke of their experience and how they
• “Doing good does you good” - employee volunteering
overcame challenges to become successful.
in large numbers for tree plantation, habitat

Annual Report 2022-23 | 43

DCB Bank Limited

CORPORATE SOCIAL RESPONSIBILITY (CSR) & and Measures and Metrics. The Service Excellence team
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) continuously interacts with the frontline staff and key
stakeholders to obtain customer feedback. Branch surprise
The Bank’s CSR thrust areas are Water, Waste Management, visits and “mystery shopping” activities are undertaken
Renewable Energy, Recycling, Support Technology by the Service Excellence team and instant feedback is
incubators related with the Bank’s thrust areas, Preserve provided to the branch staff and supervisors. The Bank
Archaeological and Historic sites, and Disaster relief. The has constituted three committees at different levels to
CSR and HR team work together to engage employees monitor customer service - Branch Level Customer Service
in tree plantation, habitat restoration, clean-up of parks, Committees (BLCSCs), Standing Committee on Customer
lakes, beaches, and water bodies. In FY 2023, the Bank’s Service (SCCS), and Customer Service Committee of the
DCB Social volunteers engaged in various clean-up and Board (CSCB). The Bank on a regular basis, through various
environment restoration initiatives across Bank’s footprint. means, educates its customers to be vigilant on the rising
Meaningful contribution of time and effort by 1,600 CSR incidents of cyber-crimes.
volunteers across DCB Bank locations has greatly helped
drive awareness on saving water in households, reducing MARKETING/BRAND AWARENESS
usage of single use plastic, encouraging local communities
to segregate recyclable and organic waste, enhance green In FY 2023, the Bank took several initiatives to create
cover in rural and urban locations. brand awareness and improve visibility for its products
and services. This resulted in quality lead generation
The ESG working group adheres to the established and new customer acquisitions. Examples of the various
framework of the ESG Principles. The Bank’s Business activities during the year are given below:
Reporting and Sustainability Report (BRSR) is an outcome
of the deliberations and application of the framework to • Nearly 10,000 micro marketing activities / customer
the activities of the Bank. engagement programs were conducted in the
branch neighbourhood across regions by branch
CUSTOMER SERVICE banking teams
• DCB Fixed Deposit print campaign in mainline
Delighting customer in every interaction is the core aim
publications was undertaken across Andhra Pradesh,
of the Bank. On a regular basis, customer complaints
Delhi, Gujarat, Kolkata, Mumbai, and Telangana.
and satisfaction levels are monitored by the Managing
Director & Chief Executive Officer along with the • Airport branding was undertaken at Ahmedabad,
Senior Management team. The Bank has constituted Bhubaneshwar, Delhi, Kolkata, and Raipur. DCB
an independent “Service Excellence” team to analyse Fixed Deposit, DCB Savings Account and DCB
customer complaints, identify root cause for service Remit communication were prominently displayed
issues, make process improvements and work with at these airports.
the various businesses and functions to continuously • Mobile van activation programs were executed in
enhance service levels. The Bank has an “Integrated the states of Andhra Pradesh, Karnataka, Odisha,
Centralised Complaint Management” system and Tamil Nadu, and Telangana to promote DCB Savings
service standards to ensure that customer queries and Account and DCB Gold Loan. This medium was
complaints are addressed in a timely and quality manner. effective in generating quality leads to the branches.
• The Bank’s signature customer event “Ek Mulaqat
The Bank continues to make steady progress on the service
Kuch Baatein” was organised in Bengaluru, Delhi,
concept of Empathy Speed Quality (ESQ). In FY2023, the
Hyderabad, Kolkata, Mumbai and Pune. Senior officers
Bank conducted an independent customer satisfaction
of the Bank along with select Directors interacted face-
survey. The survey indicated that 98% customers have
to-face with hundreds of customers who appreciated
expressed their satisfaction on the services rendered by
the Bank’s service, products, and CSR activities.
the Bank. Additionally, there have been measures taken by
the Bank in FY2023 to make customer services automated • Around 2,000 “Store Boards” with “DCB Gold
or system driven. As a result, there has been a reduction of Loan” product branding was installed in the branch
complaints by 9% across categories and 28% in the top 10 neighbourhood in Odisha and Tamil Nadu.
categories in comparison to FY2022. The Bank will continue • Almost 90 events were organised at various
to improve its processes to provide faster resolutions and residential societies across the country to engage
efficiently. The Bank continuously works on the six pillars of with the prospects / residents to promote products
Service Excellence – Voice of Customer, Service Recovery, and services.
Attrition Calling, Process Simplification, Service Culture

44 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

• Throughout the year, both internal and external BUSINESS RESPONSIBILITY AND
branding campaigns were done to promote new SUSTAINABILITY REPORT (BRSR)
branches, products, and services.
In terms of Regulation 34(2)(f) of the SEBI Listing
• DCB Fixed Deposit and DCB Remit online campaigns
Obligations and Disclosure Requirements (LODR)
were done on Google and Facebook.
Regulations 2015, the Bank’s Business Responsibility and
• The Bank actively engaged customers, prospects, Sustainability Report describing the initiatives taken by
and employees with regular informative posts in the the Bank from an environmental, social and governance
social media. perspective forms part of this Report and has been
IND AS IMPLEMENTATION hosted on the website of the Bank at the following Link:
https://www.dcbbank.com/pdfs/DCB-Bank-Business-
The Ministry of Corporate Affairs (MCA), Government Responsibility-and-Sustainability-Report-2022-23.pdf
of India has notified the Companies (Indian Accounting
Standards) Rules, 2015 on February 16, 2015. Further, MAINTENANCE OF COST RECORDS
a press release was issued by the MCA on January 18,
2016 outlining the roadmap for implementation of Being a Banking company, your Bank is not required
Indian Accounting Standards (IND AS) converged with to maintain cost records as specified by the Central
International Financial Reporting Standards (IFRS) Government under Section 148(1) of the Act.
for banks. As per earlier instructions, banks in India
were required to comply with the IND AS for financial
REPORTING OF FRAUDS BY AUDITORS
statements for accounting periods beginning from
During the year under review, no instances of fraud
April 1, 2018 onwards, with comparatives for the periods
committed in the Bank by its officers or employees
ending March 31, 2018 or thereafter. On April 05, 2018, the
were reported by the Statutory Auditors and Secretarial
RBI had announced deferment of implementation date
Auditor under Section 143(12) of the Act, to the Audit
by one year with IND AS being applicable to banks for
Committee or the Board of Directors of the Bank.
accounting periods beginning April 01, 2019 onwards. On
March 22, 2019, the RBI has announced deferment of the Corporate Social Responsibility:
implementation of IND AS by banks till further notice.
1. Brief outline on CSR Policy of the Company.
PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS BY THE BANK CSR Activities shall mean all the Corporate Social
Responsibility activities / programs / initiatives of
Particulars of Loans, Guarantees or Investments the Bank, either ongoing or new, dealing with the
outstanding Pursuant to Section 186(11) of the activities mentioned in thrust areas. The activities
Companies Act, 2013, loans made, guarantees given, shall conform to those specified in Schedule VII
securities provided or acquisition of securities by a to the Act (as amended from time to time) and as
banking company in the ordinary course of its business recommended by the CSR and ESG Committee and
are exempted from the disclosure requirement under approved by the Board.
Section 134(3)(g) of the Companies Act, 2013.
Thrust areas or activities ascribed to them are defined
PARTICULARS OF CONTRACTS OR in the Policy, as amended by the Board, from time to
ARRANGEMENTS WITH RELATED PARTIES time.

All the transactions with related parties are in the Projects/ Programmes to be undertaken:
ordinary course of business and on arm’s length basis
CSR Thrust Areas for DCB Bank
and there are no ‘material’ contracts or arrangement or
transactions with related parties and thus disclosure in Thrust areas shall mean and include any one or more
Form no. AOC-2 is not required. of the following CSR activities:
a) Conservation of water / water storage / water
POLICY ON RELATED PARTY TRANSACTIONS
usage / protecting water bodies
OF THE BANK
b) Waste Management
The Bank has a policy on Related Party Transactions and c) Recycling
the same has been displayed on the Bank’s website at the
d) Promote waste-to-energy
following link: https://www.dcbbank.com/upload/pdf/
Policy-on-Related-Party-Transactions-June-2022.pdf e) Promote start-ups

Annual Report 2022-23 | 45

DCB Bank Limited

f) Preservation of historical and heritage sites in situ focus on water conservation, waste management, recycling
and, or waste-to-energy.
g) Support Disaster Relief

2. Composition of CSR & ESG Committee:

Sl. Name of Director Designation / Nature of Number of the Number of the

No. Directorship Committee Committee
meetings held meetings attended
during the year during the year
1 Ms. Rupa Devi Singh* Chairperson & Independent Director 4 3
2 Mr. Rafiq Somani Independent Director 4 4
3 Mr. Murali M Natrajan Managing Director & CEO 4 4
4 Mr. Thiyagarajan Kumar Independent Director 4 2
5 Mr. Farokh Subedar** Chairman & Independent Director 4 1
* till January 21, 2023
** w.e.f. January 29, 2023

3. Provide the web-link where Composition of CSR & ESG Committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the company.
https://www.dcbbank.com/corporate-social-responsibility Policies & https://www.dcbbank.com/upload/pdf/DCB-
Bank-CSR-Projects-List-FY-2022-2023.pdf

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
NA

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

Sl. No. Financial Year Amount available for set-off from Amount required to be set-off for
preceding financial years the financial year, if any
(in `) (in `)
1 FY 2021-22 0.01 crore 0.07 crore
2 FY 2022-23 0.06 crore 0.05 crore
Total 0.07 crore 0.12 crore

6. Average net profit of the company as per section 135(5). INR 439.81 crore

7. (a) Two percent of average net profit of the company as per section 135(5) INR 8.80 crore

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years. 0.12 crore

(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). INR 8.80 crore

8 (a) CSR amount spent or unspent for the financial year: NIL

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

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

46 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

DCB BANK CSR PROJECT FY 2022-23

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

1 Ground water Ensuring environ- Y Patan Gujarat 2,470,970 N Ashray Social CSR00001091
recharge via mental sustainability, Welfare
Holiya structures ecological balance, Foundation
to enhancing conservation of
agriculture & milk natural resources and
production, maintaining quality of
Santalpura taluka soil, air and water

2 Waste manage- Ensuring environ- Y Across Across 1,570,000 Y Blue Bell Office Direct
ment and waste mental sustainability, India India Solution
segregation ecological balance,
- installation of conservation of
dustbins natural resources and
maintaining quality of
soil, air and water.

3 Sustainable Ensuring environ- Y Cuttack Odisha 4,176,120 N Concern India CSR00000898

livelihood for mental sustainability, Foundation
disadvantaged ecological balance,
communities conservation of
through beekeep- natural resources and
ing, Banki block maintaining quality of
soil, air and water.

4 Sustainable liveli- Ensuring environ- Y Kendra- Odisha 4,109,968 N Concern India CSR00000898
hood through mental sustainability, pada Foundation
aquaculture & ecological balance,
water harvesting conservation of
in Kendrapada natural resources and
maintaining quality of
soil, air and water.

5 Promoting coast- Ensuring environ- Y Uttara Karnataka 3,416,766 N Concern India CSR00000898
al ecosystem mental sustainability, Kannada Foundation
based sustain- ecological balance,
able livelihood conservation of
for communities natural resources and
through bee- maintaining quality of
keeping soil, air and water.

6 Tree maintenance Ensuring environ- Y South 24 West 672,807 N Concern India CSR00000898
- regenerate tree mental sustainability, Parganas Bengal Foundation
cover, create ecological balance,
sustainable in- conservation of
come stream for natural resources and
hamlets devasted maintaining quality of
by cyclones soil, air and water.

7 Promoting coast- Ensuring environ- Y Uttara Karnataka 627,243 N Concern India CSR00000898
al ecosystem mental sustainability, Kannada Foundation
based sustain- ecological balance,
able livelihood conservation of
for communities natural resources and
through bee- maintaining quality of
keeping soil, air and water.

8 Information, Ensuring environ- Y Mumbai Maharashtra 500,000 N Concern India CSR00000898

Communication & mental sustainability, Foundation
Education about ecological balance,
rainwater har- conservation of
vesting, beekeep- natural resources and
ing & livelihood maintaining quality of
enhancement soil, air and water.
opportunities

Annual Report 2022-23 | 47

DCB Bank Limited

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

9 Sustainability of Ensuring environ- Y Cuttack Odisha 190,900 N Concern India CSR00000898

tree plantation - mental sustainability, Foundation
maintenance of ecological balance,
1,000 fruit trees conservation of
plantation, Banki natural resources and
block maintaining quality of
soil, air and water.

10 Huvinayaknahalli Ensuring environ- Y Bengaluru Karnataka 54,520 N Concern India CSR00000898

Lake waste clean mental sustainability, Foundation
up ecological balance,
conservation of
natural resources and
maintaining quality of
soil, air and water.

11 Dadar Chowpatty Ensuring environ- Y Mumbai Maharashtra 48,590 N Concern India CSR00000898
clean up mental sustainability, Foundation
ecological balance,
conservation of
natural resources and
maintaining quality of
soil, air and water.

12 Mula Mutha River Ensuring environ- Y Pune Maharashtra 42,303 N Concern India CSR00000898
clean up mental sustainability, Foundation
ecological balance,
conservation of
natural resources and
maintaining quality of
soil, air and water.

13 Har Ghar Tirana- Ensuring environ- Y Uttara Karnataka 16,100 N Concern India CSR00000898
ga campaign mental sustainability, Kannada Foundation
ecological balance,
conservation of
natural resources and
maintaining quality of
soil, air and water.

14 Information, Ensuring environ- Y Mumbai Maharashtra 24,000 Y Confederation of Direct

awareness & mental sustainability, Indian Industry
training in carbon ecological balance,
footprint assess- conservation of
ment natural resources and
maintaining quality of
soil, air and water.

15 Information, Ensuring environ- Y Mumbai Maharashtra 242,500 Y Content Services Direct

Communication mental sustainability, & Publication Pvt.
& Awareness on ecological balance, Ltd.
urban & rural conservation of
sustainability, natural resources and
climate change, maintaining quality of
livelihood issues soil, air and water.
of communities

16 Tree saplings in- Ensuring environ- Y Mumbai Maharashtra 325,000 Y Deepak Direct
digenous species mental sustainability, Enterprise
for urban green ecological balance,
spaces conservation of
natural resources and
maintaining quality of
soil, air and water.

17 Waterless urinals Ensuring environ- Y Gandhinagar Gujarat 403,500 Y Ekam Eco Direct
to save ground mental sustainability, Solution Pvt. Ltd.
water, Indian Air ecological balance,
Force station conservation of
natural resources and
maintaining quality of
soil, air and water.

48 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

18 Waterless urinals Ensuring environ- Y Jodhpur Rajasthan 394,361 Y Ekam Eco Direct
to save ground mental sustainability, Solution Pvt. Ltd.
water, Indian Air ecological balance,
Force station conservation of
natural resources and
maintaining quality of
soil, air and water.

19 Tree plantation Ensuring environ- Y Osmanabad Maharashtra 49,900 Y Gouri Shankar Direct
of indigenous mental sustainability, High Tech Co.
species for bio- ecological balance, Nursery
diversity & urban conservation of
green spaces natural resources and
maintaining quality of
soil, air and water.

20 25,000 saplings Ensuring environ- Y Mumbai Maharashtra 13,852,380 N Green Yatra Trust CSR00000236
of indigenous mental sustainability,
species for ecological balance,
Miyawaki method conservation of
tree plantation, natural resources and
Indian Navy, maintaining quality of
Mumbai soil, air and water.

21 Waste segrega- Ensuring environ- Y Across Across 1,300,000 Y I B Couriers & Direct
tion & manage- mental sustainability, India India Cargo LLP
ment provision of ecological balance,
dustbins conservation of
natural resources and
maintaining quality of
soil, air and water.

22 Restoring forest Ensuring environ- Y Mumbai Maharashtra 4,245,800 N iNaturewatch CSR00003491

landscape of mental sustainability, Foundation
Sanjay Gandhi ecological balance,
National Park, conservation of
Borivali, through natural resources and
Assisted Natural maintaining quality of
Regeneration soil, air and water.

23 Tree plantation, Ensuring environ- Y Thane Maharashtra 3,716,800 N iNaturewatch CSR00003491

habitat study, res- mental sustainability, Foundation
toration, citizen ecological balance,
engagement to conservation of
develop Ambivali natural resources and
Biodiversity Park maintaining quality of
soil, air and water.

24 Restoration of Ensuring environ- Y Navi Maharashtra 1,743,688 N iNaturewatch CSR00003491

Taloja watershed mental sustainability, Mumbai Foundation
through commu- ecological balance,
nity participation conservation of
natural resources and
maintaining quality of
soil, air and water.

25 Rainwater Re- Ensuring environ- Y Bengaluru Karnataka 2,483,250 N India Cares CSR00000714
charge Wells to mental sustainability, Foundation
enhance ground- ecological balance,
water & control conservation of
flooding. 30 wells natural resources and
at Indian Air maintaining quality of
Force locations soil, air and water.

26 Rainwater Ensuring environ- Y Bengaluru Karnataka 2,038,000 N India Cares CSR00000714

Recharge Wells mental sustainability, Foundation
to enhance ecological balance,
groundwater & conservation of
control flooding. natural resources and
27 recharge wells, maintaining quality of
Indian Air Force soil, air and water.
station

Annual Report 2022-23 | 49

DCB Bank Limited

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

27 Rainwater Ensuring environ- Y Mumbai Maharashtra 600,000 N India Cares CSR00000714

Recharge Wells mental sustainability, Foundation
to recharge ecological balance,
ground water, 6 conservation of
wells Indian Navy natural resources and
location maintaining quality of
soil, air and water.

28 Protection of Ensuring environ- Y Panna Madhya 794,200 N Last Wilderness CSR00006952

wildlife corridor mental sustainability, Pradesh Foundation
by reforestation & ecological balance,
sustainable liveli- conservation of
hood improve- natural resources and
ment for tribal & maintaining quality of
rural communities soil, air and water.
around Panna
Tiger Reserve

29 Tree plantation Ensuring environ- Y East Jharkhand 5,000,000 Y Pangea Direct

of indigenous mental sustainability, Singhbum EconetAssets
species for fruit ecological balance, Pvt. Ltd.
and non timber conservation of
forest produce. natural resources and
Trees for tribal maintaining quality of
communities & soil, air and water.
carbon neutrality
phase 2

30 Tree planta- Ensuring environ- Y Villupuram Tamil Nadu 4,500,000 Y Pangea Direct
tion 30,000 mental sustainability, EconetAssets
mangrove trees ecological balance, Pvt. Ltd.
for coastal fishing conservation of
communities, natural resources and
abate coastal maintaining quality of
erosion & liveli- soil, air and water
hood opportunity

31 Tree plantation Ensuring environ- Y Chennai Tamil Nadu 1,987,500 N Rotary Velachery CSR00009948
for urban green mental sustainability, Charitable Trust
micro habitat ecological balance,
7,500 indigenous conservation of
tree saplings natural resources and
maintaining quality of
soil, air and water.

32 Tree plantation Ensuring environ- Y Chennai Tamil Nadu 658,300 N Rotary Velachery CSR00009948
2,500 saplings of mental sustainability, Charitable Trust
indigenous spe- ecological balance,
cies. Biodiversity conservation of
enhancement natural resources and
& urban green maintaining quality of
habitat soil, air and water.

33 Tree plantation - Ensuring environ- Y Across Across 1,560,000 N SankalpTaru CSR00000590

urban plantation mental sustainability, India India Foundation
of indigenous ecological balance,
species phase 4 conservation of
natural resources and
maintaining quality of
soil, air and water.

34 Tree plantation - Ensuring environ- Y Across Across 273,000 N SankalpTaru CSR00000590

urban plantation mental sustainability, India India Foundation
of indigenous ecological balance,
species phase 5 conservation of
natural resources and
maintaining quality of
soil, air and water.

50 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

35 Tree plantation - Ensuring environ- Y Delhi Delhi 78,000 N SankalpTaru CSR00000590

urban plantation mental sustainability, Foundation
of indigenous ecological balance,
species phase 6 conservation of
natural resources and
maintaining quality of
soil, air and water.

36 Waste manage- Ensuring environ- Y Adilabad Telangana 4,462,500 N SKG Sangha CSR00005648
ment - household mental sustainability,
biodigest- ecological balance,
ers, biogas & conservation of
organic fertilizer natural resources and
for tribal families maintaining quality of
and reduction of soil, air and water.
greenhouse ef-
fect contributing
methane gas

37 Waste manage- Ensuring environ- Y Adilabad Hyderabad 1,517,250 N SKG Sangha CSR00005648
ment - household mental sustainability,
biodigest- ecological balance,
ers, biogas & conservation of
organic fertilizer natural resources and
for tribal families maintaining quality of
and reduction of soil, air and water.
greenhouse ef-
fect contributing
methane gas

38 Jal Sanchay part Ensuring environ- Y Panna Madhya 9,524,361 N SM Sehgal CSR00000262
2, groundwater mental sustainability, Pradesh Foundation
conservation, wa- ecological balance,
ter harvesting & conservation of
sustainable rural natural resources and
livelihood maintaining quality of
soil, air and water.

39 Green Mile part Ensuring environ- Y Darjeeling West 4,218,114 Y Tieedi Direct
2, dry waste col- mental sustainability, Bengal Permaculture
lection, material ecological balance, Foundation
recovery facility, conservation of
plastic recycling natural resources and
& wet waste maintaining quality of
management for soil, air and water.
organic fertilizer,
Sonada village

40 Improving Ensuring environ- Y Tapi, Gujarat, 614,427 N Under The Mango CSR00002463
livelihood for mental sustainability, Chhindwara Madhya Tree Society
tribal communi- ecological balance, Pradesh
ties through conservation of
beekeeping with natural resources and
indigenous bees maintaining quality of
soil, air and water.

41 Solid waste man- Ensuring environ- Y Haridwar Uttarakhand 1,292,000 N Waste Warriors CSR0000258
agement & waste mental sustainability, Society
recycling to con- ecological balance,
trol pollution of conservation of
the Ganga river natural resources and
at Muni-Ki-Reti, maintaining quality of
Rishikesh soil, air and water.

42 Conserving the Ensuring environ- Y Taran Punjab 1,649,158 N World Wide Fund CSR00000257
Indus river dol- mental sustainability, Taran for Nature India
phin in river Beas ecological balance,
& Harike wildlife conservation of
sanctuary natural resources and
maintaining quality of
soil, air and water.

Annual Report 2022-23 | 51

DCB Bank Limited

Sr. Name of Item from the list Local District State Total Project Mode of imple- Mode of imple- CSR
No. the CSR Project of activities in Area Budget INR mentation mentation (Name Registration
Schedule VII (Y/N) Direct (Y/N) of Agency) Number

43 Administrative Ensuring environ- Y Across Across 1,011,811 Y Administrative Direct

Charges mental sustainability, India India Charges
ecological balance,
conservation of
natural resources and
maintaining quality of
soil, air and water.

TOTAL 88,456,087

(d) Amount spent in Administrative Overheads: INR 1,011,811

(e) Amount spent on Impact Assessment, if applicable: Not Applicable

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): INR 8.85 crore

(g) Excess amount for set off, if any: INR 0.12 crore

Sl. No. Particular Amount

(in `)
(i) Two percent of average net profit of the company as per section 135(5) 8.80 crore
(ii) Total amount spent for the Financial Year 8.85 crore
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 0.05 crore
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous 0.07 crore
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.12 crore

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

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

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

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section
135(5): Not Applicable

Sd/- Sd/-
Mr. Murali Natrajan Mr. Farokh Subedar
Managing Director & CEO Chairman – Corporate Social
Responsibility and ESG Committee

52 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

CRITERIA FOR DETERMINING QUALIFICATIONS, • Remuneration of all employees including Senior

POSITIVE ATTRIBUTES AND INDEPENDENCE OF Management and KMPs are decided as per the
A DIRECTOR Compensation Policy of the Bank. The details are
given on website at the following Link: https://www.
• The Board shall have minimum 6 and maximum 15 dcbbank.com/pdfs/Policy_for_Remuneration_for_
Directors, unless otherwise approved. No person the_Directors_Key_managerial_personnel_and_
of age less than 21 years shall be appointed as a other_Employees_of_the_Bank.pdf
Director on the Board.
PARTICULARS OF EMPLOYEES
• The Bank shall have such person on the Board who
complies with the requirements of the Companies The Bank had 9905 employees as on March 31, 2023.
Act, 2013, the Banking Regulation (BR) Act, 1949, 10 employees employed throughout the year were in
Provisions of the SEBI (Listing Obligations and receipt of aggregate remuneration of not less than
Disclosure Requirements) Regulations, 2015 (the `1.02 crore per annum and no employee was employed
Listing Regulations), the ‘Fit & Proper’ criteria for a part of the year. The details of top 10 employees
prescribed by the Reserve Bank of India (RBI), in terms of remuneration drawn pursuant to provisions
Memorandum of Association and Articles of of Section 197(12) of the Companies Act, 2013 read with
Association of the Bank and all other statutory Rule 5 (2) and 5(3) of the Companies (Appointment and
provisions and guidelines as may be applicable from Remuneration of Managerial Personnel) Rules, 2014 are
time to time. appended separately (Annexure-I) and form part of this
Report.
• Composition of the Board shall be in compliance
with the requirements of Regulation 17 (1) of the The Report and Accounts are being sent to the
Listing Regulations. Shareholders excluding these particulars and any
Shareholder interested in obtaining the said details may
• Majority of the Directors as required under BR Act write to the Company Secretary at the Registered Office
shall have specialized knowledge/experience in of the Bank at investorgrievance@dcbbank.com.
the areas like Agriculture, Banking, SSI, Legal, Risk
Management, Accountancy, Economy, Accountancy EMPLOYEE STOCK OPTION PLAN (ESOP) AND
and Audit, Finance etc. CASH SETTLED STOCK APPRECIATION RIGHTS
(CSAR)
• All Directors shall abide by the Code of Conduct.
The Bank has formulated and adopted the DCB Bank
• Directors shall not attract any disqualification and Limited –Employee Stock Option Plan in 2005 approved
shall be persons of sound integrity and honesty, by shareholders on December 15, 2006 and amended
apart from knowledge, experience, etc. in their from time to time in order to:
respective fields
• provide means to enable the Bank to attract and retain
POLICY RELATING TO THE REMUNERATION OF appropriate human talent in the employment of the Bank;
DIRECTORS, KEY MANAGERIAL PERSONNEL
AND OTHER EMPLOYEES • motivate the employees of the Bank with incentives
and reward opportunities;
• MD & CEO, Company Secretary and Chief Financial
Officer shall be the Key Managerial Personnel (KMPs) • achieve sustained growth of the Bank and to create
of the Bank. shareholder value by aligning the interests of the
employees with the long-term interests of the Bank; and
• Except for the Chairman and the MD & CEO, no other
Directors are paid remuneration. The Chairman and • create a sense of ownership and participation
the MD & CEO are paid remuneration as approved amongst the employees of the Bank. The Employee
by the RBI and other applicable authorities. All Stock Options (“ESOPs”) and the Cash Settled
Directors except the MD & CEO are entitled to sitting Stock Appreciation Rights (“CSARs”) granted to the
fees for attending various Board and its Committee employees of the Bank currently operate under the
meetings. following Schemes:

• Independent Directors are not entitled for Employee i. DCB Bank Limited - Employees Stock Option Plan
Stock Options. 2005 (“ESOP Scheme”)

Annual Report 2022-23 | 53

DCB Bank Limited

ii. DCB Bank Limited -Cash Settled Stock Appreciation Name Ratio
Rights Scheme 2022 (“CSARs Scheme”). Mr. Farokh Subedar 0%
(Chairman from 31-01-2023):
During the year, the Bank has not granted any ESOPs.
Mr. Murali M Natrajan 0%
However, 1,170,786 CSARs were granted on October 15,
(Managing Director& CEO):
2022 at the exercise price of ` 96.70 per unit of CSAR
Mr. Satish Gundewar 5%
to the eligible employees of the Bank in accordance with
(Chief Financial Officer):
the CSARs Scheme and as approved by the Nomination
Ms. Rubi Chaturvedi 15%
and Remuneration Committee (“NRC”).
Company Secretary:
The provisions of SEBI (Share Based Employee Benefits
c) The percentage increase in the median remuneration
and Sweat Equity) Regulations, 2021 (“SEBI (SBEB&SE)
of employees in the financial year: 7.5%
Regulations, 2021”), do not apply to cash settled SARs
Scheme. As the Bank’s SARs Scheme provides only for d) The number of permanent employees on the rolls of
cash settlement on stock appreciation, the provisions Bank: 9846
of SEBI (SBEB&SE) Regulations, 2021, are no longer
applicable. e) Average percentile increase already made in the
salaries of employees other than the managerial
The aforesaid Schemes complied SEBI (SBEB&SE) personnel in the last financial year ended March 31,
Regulations, 2021, to the extent applicable. During the 2023 and its comparison with the percentile increase
year under review, no material changes were made to in the managerial remuneration and justification
the Schemes. thereof and any exceptional circumstances for
increase in the managerial remuneration: Average
The relevant details of the aforesaid Schemes, as required
increase in remuneration is 8.22 % for employees
under the SEBI (SBEB&SE) Regulations 2021, are available
other than Managerial Personnel & 0 % for Managerial
on the Bank’s website viz., URL: https://www.dcbbank.
Personnel (KMP and Senior Management). There are
com/cms/showpage/page/disclosures These details,
no exceptional circumstances for increase in the
along with the certificates from the Secretarial Auditor,
managerial remuneration.
as required under the SEBI (SBEB&SE) Regulations 2021,
stating that the ESOP Scheme and the SARs Scheme f) If remuneration is as per the Compensation Policy of
have been implemented in accordance with the SEBI the Bank: Yes
(SBEB&SE) Regulations, 2021 and the resolution passed
by the members, would be placed and available for PARTICULARS REGARDING CONSERVATION
inspection by the members during the AGM. OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
PARTICULARS PURSUANT TO SECTION 197(12)
AND THE RELEVANT RULES The provisions of Section 134(3)(m) of the Companies
Act, 2013 relating to conservation of energy and
a) The ratio of the remuneration of each Director to the technology absorption do not apply to the Bank. However,
median employee’s remuneration for the financial as mentioned in earlier part of the Report, the Bank has
year ended March 31, 2023 and such other details as been continuously and extensively using technology in
prescribed are as given below: its operations. Foreign Exchange earnings and outgo are
part of the normal banking business of the Bank.
Name Ratio
Mr. Farokh Subedar 1:1 ESTABLISHMENT OF VIGIL MECHANISM
(Chairman from January 31, 2023)
The Bank has in place a vigil mechanism pursuant to
Mr. Murali M Natrajan 102:1
which a Whistle Blower Policy has been in vogue for
(Managing Director & CEO)
the last several years. The policy was last reviewed in
b) The percentage increase in remuneration of each FY2022-23. This Policy, inter alia, provides a direct access
Director, Chief Financial Officer, Chief Executive to a Whistle Blower to the Chief Compliance Officer
Officer, Company Secretary or Manager, if any, in the (CCO) on his dedicated e-mail whistleblower@dcbbank.
financial year: com and Chairman of the Audit Committee of the Board
(ACB) on his dedicated e-mail-ID cacb@dcbbank.
com. The Whistle Blower Policy covering all employees
and Directors is hosted on the Bank’s website at

54 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

http://www.dcbbank.com/cms/showpage/page/whistle- DIRECTORS’ RESPONSIBILITY STATEMENT

blower-policy.
Based on the frame work of internal financial controls
None of the Bank’s personnel have been denied access and compliance systems established and maintained by
to the Audit Committee the Bank, the work performed by the Internal, Statutory
and Secretarial Auditors and the reviews performed by
THE DETAILS IN RESPECT OF ADEQUACY OF the Management and the relevant Board Committees,
INTERNAL FINANCIAL CONTROLS including the Audit Committee of the Board, the Board
is of the opinion that the Bank’s internal financial
The Bank has designed and implemented a process
controls were adequate and effective during the year
driven framework for Internal Financial Controls (“IFC”)
ended March 31, 2023. Accordingly, pursuant to Section
within the meaning of the explanation to Section134
134(5) of the Companies Act, 2013, based on the above
(5)(e) of the Companies Act, 2013. For the year ended
and the representation received from the Operating
March 31, 2023, the Board is of the opinion that the Bank
Management, the Board of Directors, to the best of their
has sound IFC commensurate with the nature and size
knowledge and ability confirms that
of its business operations wherein controls are in place
and operating effectively and no material weaknesses (i) in the preparation of the annual accounts, the
exist. The Bank has a process in place to continuously applicable accounting standards have been followed
monitor the existing controls and identify gaps, if any, and that there were no material departure there
and implement new and/or improved controls wherever from;
the effect of such gaps would have a material effect on
the Bank’s operation. (ii) they have, in the selection of the accounting policies,
consulted the Statutory Auditors and have applied
SECRETARIAL AUDITOR their recommendations consistently and made
judgments and estimates that are reasonable and
Pursuant to the provisions of Section 204 of the Act
prudent as to give a true and fair view of the state
and the Companies (Appointment and Remuneration
of affairs of the Bank as at March 31, 2023 and of the
of Managerial Personnel) Rules, 2014, the Board
profit of the Bank for the year ended on that date;
of Directors of your Bank had appointed M/s. S. N.
ANANTHASUBRAMANIAN & Co., Company Secretaries, (iii) they have taken proper and sufficient care for the
Thane, to act as the Secretarial Auditor of the Bank for maintenance of adequate accounting records in
FY 2022-23. The Secretarial Audit Report for the financial accordance with the provisions of the Companies
year ended March 31, 2023, as required under Section Act, 2013, for safeguarding the assets of the Bank
204 of the Act and Regulation 24A of the SEBI Listing and for preventing and detecting fraud and other
Regulations, is annexed to this Report. Your Bank is in irregularities;
compliance with the applicable Secretarial Standards
issued by The Institute of Company Secretaries of (iv) they have prepared the annual accounts on a going
India and approved by the Central Government under concern basis;
Section 118(10) of the Act for FY 2022-23. The Secretarial
Auditor’s Report does not contain any qualifications, (v) they have laid down internal financial controls to be
reservations, adverse remarks or disclaimers except followed by the Bank and that such internal financial
an observation pertaining to appointment of Woman controls are adequate and were operating effectively
Independent Director on the Board. during the year ended March 31, 2023; and

In terms of the SEBI circular dated February 8, 2019, your (vi) proper system has been devised to ensure
Bank has submitted the Annual Secretarial Compliance compliance with the provisions of all applicable laws
Report for FY 2022-23 to the Stock Exchanges within and that such systems were adequate and operating
the prescribed time and the same is available on effectively during the year ended March 31, 2023.
websites of the Stock Exchanges i.e. BSE Limited
(www.bseindia.com), National Stock Exchange of India
COPY OF THE ANNUAL RETURN
Limited (www.nseindia.com) and on the Bank’s website
A copy of the Annual Return as of March 31, 2023
viz., URL: https://www.dcbbank.com/upload/pdf/
pursuant to the sub-section (3) of Section 92 of
BSENSEAnnualSecretarialComplianceReportFY202223.
the Companies Act, 2013 read with Rule 11(1) of the
pdf
Companies (Management and Administration) Rules,
2014 and forming part of this Report is placed on the

Annual Report 2022-23 | 55

DCB Bank Limited

website of the Bank as per provisions of Section134(3) of the 28th AGM and Corporate Governance Report
(a) and is available at the following link: Based on the disclosures provided by them. None of
the above mentioned persons is disqualified from being
https://www.dcbbank.com/upload/pdf/Form-MGT-07- appointed as a Director in terms of Section 164 of the
for-FY-2022-2023.pdf Companies Act, 2013. The Certificate dated May 5, 2023
issued by M/s. Ananthasubramanian & Co., Practicing
CORPORATE GOVERNANCE
Company Secretaries in this regard is attached to and
The Bank has been continuously observing the best forming part of this report.
corporate governance practices and benchmarks
In the opinion of the Board of Directors, all the above
itself against each such practice. A separate section
mentioned Directors being appointed /re-appointed,
on Corporate Governance and a Certificate from
possess the required integrity, expertise and experience
M/s S. N. Ananthasubramanian & Co, Practicing Company
(including the proficiency) of the Independent Director
Secretaries, regarding compliance with the conditions of
appointed during the year/as on date of this report
Corporate Governance as stipulated in Schedule V of the
SEBI (Listing Obligations and Disclosure Requirements) None of the Directors of the Bank is related to each other
Regulations, 2015 forms part of this Annual Report. per se

DIRECTORS CHANGE IN KEY MANAGERIAL PERSONNEL

During the year under review, Mr. Shaffiq Dharamshi Mr. Bharat Laxmidas Sampat ceased to be a Chief
a Non-Executive Director and Ms. Rupa Devi Singh an Financial Officer of the Bank on June 30, 2022 due to
Independent Director have ceased to be the Directors of his retirement and Mr. Satish Subhash Gundewar was
the Bank with effect from January 12, 2023 and January appointed as Chief Financial Officer of the Bank effective
21, 2023 respectively, after completing their term of eight July 01, 2022.
consecutive years (the maximum permissible) as per the
provisions of the Banking Regulation Act, 1949. Further Please note that Mr. Gundewar has tendered his
Mr. Ashok Barat has ceased to be an Independent resignation from the services of the Bank to pursue his
Director of the Bank with effect from March 21, 2023 career outside the Bank. His last working day with the
after completing his term of five years as Independent Bank would be June 3, 2023. The Bank has identified Mr.
Director. Ravi Kumar as “officer in charge” to take over from Mr.
Gundewar from June 4, 2023 onwards.
Mr. Farohk Nariman Subedar was appointed as an
Additional Independent Director of the Bank with effect A STATEMENT INDICATING THE MANNER IN
from October 15, 2022 and as the Non-Executive Part WHICH FORMAL ANNUAL EVALUATION HAS
Time Chairman of the Bank with effect from January 31, BEEN MADE BY THE BOARD OF ITS OWN
2023. The Shareholders had approved the appointment PERFORMANCE AND THAT OF ITS COMMITTEES
of Mr. Subedar as Independent Directors through AND INDIVIDUAL DIRECTORS
Postal Ballot concluded on December 20, 2022 and
subsequently RBI has approved his appointment as Non- As per the Board Evaluation Policy of the Bank, evaluation
Executive, Part-Time Chairman of the Bank with effect exercise of all Directors, Board as a whole and its various
from January 31, 2023. Committees was conducted during the year.

Mr. Iqbal Khan, Non Executive Non Independent Director The Board review focused on governance, board
of the Bank is liable to retire by rotation and being structure and composition, relationship and dynamics of
eligible, has offered him for re-appointment. the Board, frequency of meetings, information flow and
agenda etc.
Ms. Lakshmy Chandrasekaran was appointed as an
Additional Independent Director on April 14, 2023 The Committee review focused on the composition,
for a term of three (3) years i.e. up to April 13, 2026. adequacy of terms of reference of various committees,
Her appointment is recommended for approval of frequency of meetings etc.
shareholders in the 28th Annual General Meeting.
The individual Board members review focused on
A brief resume relating to the persons who are to be relevant qualification/skill sets, understanding of the
appointed/re-appointed as Directors and recommended Bank and banking industry, contribution in meetings,
for approval of Shareholders, are furnished in the notice attendance etc.

56 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

The findings of the exercise were discussed in the SECRETARIAL AUDIT REPORT
meetings of Independent Directors and the Board. The
appropriate feedback was conveyed to each Director. Pursuant to the requirements of the Companies Act,2013,
The Board was satisfied with the performance of each the Bank has appointed M/s. Ananthasubramanian &
Member, the Board and various Committees. Co., Practicing Company Secretaries (COP 1774) as the
Secretarial Auditor for FY 2022-23 and their report is
The details of familiarisation programme arranged for attached separately to this Report.
independent directors have been disclosed on website of
the bank and are available at the following link: ACKNOWLEDGEMENTS

https://www.dcbbank.com/upload/pdf/Familarisation- Your Board wishes to thank the principal Shareholder

Programme-for-Independent-Directors.pdf and Promoters, the Aga Khan Fund for Economic
Development S.A. (AKFED) and all the other Shareholders
STATUTORY AUDITORS for the confidence and trust they have reposed in the
Bank. Your Board also acknowledges with appreciation
In the Twenty Sixth Annual General Meeting (26th the Reserve Bank of India (RBI) for its valuable guidance
AGM) held on August 13, 2021, the terms of S R and support to the Bank. Your Board similarly expresses
Batliboi & Associates LLP, Chartered Accountants gratitude for the assistance and co-operation extended by
(RegistrationNo.101049W/E300004) were revised SEBI, BSE, NSE, NSDL, CDSL, NPCIL, Central Government
from 4 years to 3 years from the FY 2020-21 till (and and the Governments of various States, Union Territories
including)the FY 2022-23 as Statutory Auditors of the and the National Capital Region of Delhi where the Bank
Bank to hold office for three (3) years from their original has its branches.
appointment at the Twenty Fifth Annual General
Meeting as per the requirements of the guidelines dated Your Board acknowledges with appreciation, the invaluable
April 27, 2021, issued by Reserve Bank of India (RBI). support provided by the Bank’s auditors,lawyers, business
Pursuant to the said RBI Guidelines, M/s Sundaram partners and investors. Your Board is also thankful for the
&Srinivasan, Chartered Accountants, (ICAI Registration continued co-operation of various financial institutions
No. 004207S), were also appointed as Joint Statutory and correspondents in India and abroad.
Auditors of the Bank in the 26th AGM. As such, both
the statutory auditors are working as joint statutory Your Board wishes to sincerely thank all its customers
auditors for the Bank from FY 2021-22. for their patronage. Your Board records with sincere
appreciation the valuable contribution made by
As per the extant provisions, the RBI gives permission for employees at all levels and looks forward to their continued
appointment of auditor on year-to-year basis till expiry commitment to achieve further growth and take up more
of the tenure of the Statutory Auditors. Accordingly challenges that the Bank has set for the future.
relevant application have been made to RBI requesting
its approval for appointment of S R Batliboi & Associates On behalf of the Board of Directors
LLP, Chartered Accountants (Registration No. 101049W/
E300004) and M/s Sundaram & Srinivasan, Chartered
Accountants, (ICAI Registration No. 004207S) as the SD/-
Joint Statutory Auditors of the Bank for FY 2022-23. Farokh N. Subedar
Chairman
Place: Mumbai
Date: May 05, 2023

Annual Report 2022-23 | 57

DCB Bank Limited

CORPORATE GOVERNANCE
Report on Corporate Governance pursuant to Schedule V (C) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations) and forming Part of the Directors’
Report for the year ended March 31, 2023.

The Bank has complied with the corporate governance requirements specified in regulation 17 to 27 and clauses (b) to
(i) of sub-regulation (2) of Regulation 46 and Para C, D and E of Schedule V of the Listing Regulations.

PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

The Bank on an ongoing basis continues to believe strongly in adopting and adhering to the best corporate governance
practices and benchmarking itself against the industry’s best practices. It is the Bank’s ongoing endeavor to achieve
the highest levels of governance as a part of its responsibility towards the Shareholders and other Stakeholders.
Transparency and integrity continue to be the cornerstones for good governance, and the Bank is strongly committed
to these principles for enhancing the Stakeholders’ value.

BOARD OF DIRECTORS

The Bank, as on date of this Report, has a Non-Executive (Part-time) Chairman, a Managing Director & Chief Executive
Officer (MD & CEO), and eight (8) other Directors including a Woman Independent Director on its Board. The Directors
on the Board of the Bank including the Independent Directors appointed during the year have required expertise and
experience (including the proficiency) in their respective fields and integrity.

Except for the Director Mr. Iqbal Khan and the MD & CEO Mr. Murali M. Natrajan, all the other 8 Directors are ‘Independent’.
As against the requirement of the Listing Regulations for the number of Independent Directors to be more than 1/3rd
of the total number of Directors, your Board has 80% of its directors in the ‘Independent’ category. The day-to-day
management of the Bank is entrusted to the Senior Managerial team under the leadership of the MD & CEO who
operates under the superintendence, direction and control of the Board. The Board reviews and approves strategy and
oversees the actions and performance of the management periodically for enhancing the Stakeholders’ value.

In terms of Companies (Creation and Maintenance of Databank of Independent Directors) Rules 2019 read with
Companies (Appointment and Qualification of Directors) fifth Amendment Rules, 2019 or any other related Rules, all
the Independent Directors of the Bank are enrolled with the databank of Independent Directors maintained by the
Government.

All the Directors of the Bank and their relatives together hold total 2,552,945 Equity Shares of the Bank (0.82% of
Capital) i.e. less than 2% of the issued and paid-up equity share capital of the Bank as on March 31, 2023

58 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

COMPOSITION OF THE BOARD OF DIRECTORS Master in Marketing Management degree’s. He has 33

years of experience in the Information and Technology
Mr. Farokh N. Subedar, is the Part Time Non-Executive field. Currently, he is an Area Vice President for India and
Chairman and Independent Director of the Bank. He has South Asia Pacific at ANSYS Inc
vast experience in the areas of business management,
finance, taxation, law, risk management and accounts. He Mr. Rafiq Ramzanali Somani holds 1,395 Equity Shares in
has been on the boards of various Tata companies and the Bank as on March 31, 2023.
has been closely associated with several Non - Banking
Financial Companies. Mr. Subedar superannuated from Mr. Shabbir Merchant, an Independent Director of the
Tata Sons Private Limited (“Tata Sons”) as the Chief Bank, holds a Masters in Personnel Management with
Operating Officer. Mr. Subedar also functioned as the more than 32 years of experience. He is the founder of
Chief Financial Officer and Company Secretary of Tata Valulead Consulting, a leadership consulting firm. His firm
Sons. Mr. Subedar’s association with Tatas spans over 36 partners with clients in Asia & Europe for strategic talent
years. He has also been the past President of the Bombay management, leadership development, organization
Chamber of Commerce and Industry. Mr. Subedar holds transformation and top team synergy.
a Bachelor’s degree in Commerce and is a Member of
Mr. Shabbir Merchant holds 850 Equity Shares in the
The Institute of Chartered Accountants of India and The
Bank as on March 31, 2023.
Institute of Company Secretaries of India.
Mr. Somasundaram PR, an Independent Director of the
Mr. Farokh Subedar does not hold any Equity Shares in
Bank, is a Chartered and Cost Accountant with over 31
the Bank as on March 31, 2023.
years’ experience across Unilever Group companies in
Mr. Amyn Jassani, is an Independent Director of the Bank India and abroad, Standard Chartered Bank and others.
and has over 30 years of experience primarily with the Currently he is the Regional CEO- India of the World
big four accounting firms. He is a Fellow member of the Gold Council.
Institute of Chartered Accountants of India and is also a
Mr. Somasundaram PR does not hold any Equity Shares
member of the Institute of Company Secretaries of India.
in the Bank as on March 31, 2023
Additionally, he has passed examinations for Certified
Information System Auditor (CISA) and Social Auditors Mr. Tarun Balram is an Independent Director of the Bank
Certification. w.e.f. January 24, 2022. He is a senior banker with almost
30 years of experience with HSBC in the Corporate
Mr. Amyn Jassani holds 100 Equity Shares in the Bank as
and Institutional banking domain. He worked in various
on March 31, 2023.
capacities including Managing Director and Head India
Mr. Iqbal Khan, a Non-Executive Director of the Bank,is - Corporate & Institutional Banking, covering HSBC’s
a Senior Partner at Shardul Amarchand Mangaldas & Corporate & Financial Sector Clients (local and multi-
Co. and a member of the Private Equity and Mergers national). He has also played an active leadership role in
& Acquisitions Practice Group. He advises some of the championing HSBC India’s Diversity & Inclusion agenda
largest sovereign wealth funds, global private equity as well as been a mentor to several middle-management
funds and strategic corporate, and specializes in private executives, guiding them through their career journey.
equity investments, private and public mergers and Mr. Tarun Balram is a Commerce graduate from Delhi
acquisitions (both domestic and cross-border), joint University post which, he undertook a double Masters
ventures and foreign investment laws. Mr. Iqbal finished in Business Economics and Business Management,
his J.D. from Columbia Law School (as a Harlan Fisk Stone respectively.
Scholar) and LLB. From London School of Economics
Mr. Tarun Balram does not hold any Equity Shares in the
and Political Science. Mr. Iqbal has also worked at
Bank as on March 31, 2023
Kirkland & Ellis LLP,New York and at Paul, Weiss, Rifkind,
Wharton & Garrison LLP, New York. He is enrolled with Mr. Thiyagarajan Kumar is an Independent Director of
the Bar Council of Maharashtra & Goa. the Bank w.e.f. February 10, 2022. He is a Business Leader
with over 37 years of experience with the Unilever group,
Mr. Iqbal Khan does not hold any Equity Shares in the
Times Group, in the Finance, Commercial, Governance,
Bank as on March 31, 2023
Audit / Assurance functions. He worked in various
Mr. Rafiq Ramzanali Somani, an Independent Director capacities including General Manager – Finance, Audit
of the Bank, holds a B.E. in Computer Science and a Director with Unilever from October 1986 to Sep 2008
and was Director, Management Assurance Services of

Annual Report 2022-23 | 59

DCB Bank Limited

the Times Group between Oct 2008 till March 2023. Branch Banking, Mortgages, Credit Cards, Personal
He is associated as Member of the Governing Council Loans, Wealth Management, SME, MSME, Corporate
of Loyola Institute of Business Administration (LIBA), Banking, Agriculture, Operations, Technology, Credit
Chennai, Secretary, Loyola Alumni Association, Delhi, and Risk, Re-engineering, Finance, Marketing and Product
the council member of parent Alumni body at Chennai. Management. He has had successful international stints
He was also past president of the Institute of Internal in Singapore, Hong Kong, South Korea and Indonesia.
Auditors, India. He is B. Com, Associate of Institute of Prior to joining the Bank, Mr. Natrajan worked as Global
Chartered Accountants of India, Associate of Institute Head of SME Banking, Standard Chartered Bank and was
of Cost and Works Accountants of India and completed reporting to the CEO Global Consumer Banking. He was
his Post Graduate Diploma in Management Accountancy managing 27 countries and in collaboration with country
Course, ICAI. teams was, inter alia, responsible for strategy, product
creation, franchise development and portfolio quality.
Mr. Thiyagarajan Kumar does not hold any Equity Shares From November, 2004 to June, 2008, he was the Head
in the Bank as on March 31, 2023 of Consumer Banking (including SME Banking), India &
Nepal, Standard Chartered Bank. He was responsible for
Ms. Lakshmy Chandrasekaran is an Independent Director
Strategy, Business, Credit, Finance, Human Resources,
of the Bank w.e.f. April 14, 2023. She is a Chartered
Sales, Service, Operations, Distribution, Marketing,
Accountant by qualification. She also holds a diploma
Business Analytics and Projects. In Standard Chartered
in Internal Financial Reporting and Information Systems
Bank, he was a member of Global Executive Forum. In
and has over 35 years’ of experience in the field of
1984, he started his career in India with American Express,
Accountancy, Finance, Taxation, and Risk Management.
Travel Related Services where he worked for five years.
She is a Senior Partner of M/S.P.CHANDRASEKAR LLP,
He gained experience in Business Planning, Finance and
Chartered Accountants, a leading firm of Chartered
Operations. He was posted in Hong Kong / Singapore
Accountants, established in the year 1988 specializing
from August, 1987 to February, 1989. In October 1989,
in the field of Auditing, Taxation, Corporate Advisory
he joined Citibank consumer division where he spent 14
Services, Management Consulting Services, Due
years in various departments (Operations, Credit, Risk,
diligence, Valuations, Inspections and Investigations.
Finance, Product, Marketing and Business). Globally, this
With over 31 years of experience as an Audit partner for
was the time when consumer banking was taking shape.
Listed and Unlisted Entities besides NBFCs and Public
As Business Manager of Cards, he launched several
and Private Sector Banks, for the last many years. Also,
innovative products – Times Card, Women’s Card, Indian
in charge of Risk Management, Quality Assurances,
Oil Card, Loan-on-Phone and Jet Airways Co-Brand.
Governance of Clients and Financial Consultancy to
Loan on Phone later became a global success. He was
Medium and Large Business Organisations. She is also a
responsible for the turnaround of Credit Cards business.
partner in charge of Due Diligence and Fraud Detection
In the year 2000, Citibank promoted him as Cards
in Corporate Accounting and Finance and technical
Business Director of Hong Kong. Later in July, 2002, he
aspects of Systems Control and Data Managements
moved to Citibank Indonesia where he managed Cards
Ms. Lakshmy Chandrasekaran does not hold any Equity Business and Consumer Finance. For a brief period in
Shares in the Bank. 2002, he worked in Citibank – Consumer Division, South
Korea.
Mr. Murali M. Natrajan, FCA, Managing Director & Chief
Executive Officer of the Bank since April, 2009, has 39 Mr. Murali M. Natrajan holds 2,550,000 Equity Shares in
years global experience in financial services. This includes the Bank as on March 31, 2023.

60 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

OTHER LISTED ENTITIES IN WHICH THE DIRECTORS OF THE BANK ARE DIRECTORS AND
CATEGORY OF THEIR DIRECTORSHIP AS ON MARCH 31, 2023

Sr. Name of the Director Other Listed Entity in which he/she is a Category of Directorship
No. director
1. Mr. Farokh N. Subedar* i) Tata Investment Corporation Limited Non - Executive Director
ii) Tata Capital Financial Services Limited Non - Executive Director
iii) Tata Capital Limited Non - Executive Director
2. Mr. Murali M. Natrajan NIL Not Applicable
3. Mr. Amyn Jassani NIL Not Applicable
4. Mr. Iqbal Ishak Khan NIL Not Applicable
5. Ms. Lakshmy Chandrasekaran # NIL Not Applicable
6. Mr. Rafiq Somani NIL Not Applicable
7. Mr. Shabbir Merchant NIL Not Applicable
8. Mr. Somasundaram PR NIL Not Applicable
9. Mr. Tarun Balram NIL Not Applicable
10. Mr. Thiyagarajan Kumar NIL Not Applicable

* Appointed as an Additional Independent Director w.e.f. October 15, 2022, appointed as Independent Director by
Shareholders through Postal Ballot dated December 20, 2022 and subsequently RBI has approved his appointment as
Non-Executive, Part-Time Chairman of the Bank w.e.f. January 31, 2023.

# Appointed as an Additional Independent Director w.e.f. April 14, 2023 subject to approval of the shareholders.

BOARD DIVERSITY AND EXPERTISE

The skill or competencies for the members of the Board of the Banking companies are provided in Section 10 A of
the Banking Regulation Act, 1949. Accordingly, skills were identified for the Bank’s Board of Directors. The details of
identified skills and the names of Directors who are having the identified skills are given below:

Skill/Expertise Name of Directors Skill/Expertise Name of Directors

(i) Accountancy & Mr. Farokh N. Subedar (iv) Economics Mr. Murali M. Natrajan
Audit Mr. Murali M. Natrajan Mr. Somasundaram PR
Mr. Somasundaram PR Mr. Amyn Jassani
Mr. Amyn Jassani Mr. Thiyagarajan Kumar
Mr. Thiyagarajan Kumar (v) Finance Mr. Farokh N. Subedar
Ms. Lakshmy Chandrasekaran Mr. Murali M. Natrajan
(ii) Agriculture & Mr. Rafiq Somani Mr. Amyn Jassani
Rural Economy Mr. Murali M. Natrajan Mr. Somasundaram PR
(iii) Banking Mr. Murali M. Natrajan Mr. Tarun Balram
Mr. Somasundaram PR Mr. Thiyagarajan Kumar
Mr. Tarun Balram Ms. Lakshmy Chandrasekaran
Mr. Thiyagarajan Kumar (vi) Law Mr. Farokh N. Subedar
Mr. Iqbal Khan
Mr. Amyn Jassani

Annual Report 2022-23 | 61

DCB Bank Limited

Skill/Expertise Name of Directors Skill/Expertise Name of Directors

(vii) Small scale Mr. Murali M. Natrajan (xii) Business Mr. Farokh N. Subedar
industry Mr. Rafiq Somani Management Mr. Murali M. Natrajan
(viii) Information Mr. Rafiq Somani Mr. Somasundaram PR
Technology Mr. Murali M. Natrajan Mr. Rafiq Somani
Mr. Amyn Jassani Mr. Shabbir Merchant
(ix) Payment & Mr. Murali M. Natrajan Mr. Tarun Balram
Settlement Mr. Somasundaram PR Mr. Thiyagarajan Kumar
Systems
Mr. Tarun Balram (xiii) Product Mr. Murali M. Natrajan
(x) Human Mr. Shabbir Merchant Development & Mr. Rafiq Somani
Resources Marketing
Mr. Murali M. Natrajan Mr. Somasundaram PR
Mr. Somasundaram PR Mr. Shabbir Merchant
Mr. Amyn Jassani (xiv) Merger & Mr. Somasundaram PR
Mr. Tarun Balram Acquisitions Mr. Iqbal Khan
& Strategic
Mr. Thiyagarajan Kumar Mr. Murali M. Natrajan
Options
(xi) Risk Mr. Farokh N. Subedar
Management Mr. Amyn Jassani
Mr. Murali M. Natrajan
Mr. Tarun Balram
Mr. Thiyagarajan Kumar
Ms. Lakshmy Chandrasekaran

Composition of Board of Directors

Sr. Name of Director Independent /

No. Non-Independent Director

1. Mr. Farokh Nariman Subedar* Non-Executive Part-time Chairman and Independent Director

2. Mr. Murali M. Natrajan Managing Director & CEO

3. Mr. Amyn Jassani Independent Director

4. Mr. Iqbal Ishak Khan Non-Executive, Non-Independent Director

5. Ms. Lakshmy Chandrasekaran** Independent Director

6. Mr. Rafiq Somani Independent Director

7. Mr. Shabbir Merchant Independent Director

8. Mr. Somasundaram PR Independent Director

9. Mr. Tarun Balram Independent Director

10. Mr. Thiyagarajan Kumar Independent Director

*Appointed as an Independent Director with effect from October 15, 2022 and as the Chairman with effect from January 31, 2023
** Appointed as an Additional Independent Director with effect from April 14, 2023 subject to approval of Shareholders

62 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

In the opinion of the Board, the Independent Directors fulfil the conditions specified in the SEBI (Listing Obligations d
Disclosure Requirements) Regulations, 2015 and are independent of the management.

During the year under review, Mr. Shaffiq Dharamshi a Non-Executive Director and Ms. Rupa Devi Singh an Independent
Director have ceased to be the Directors of the Bank on January 12, 2023 and January 21, 2023 respectively, after
completing their term of eight consecutive years (the maximum permissible) as per the provisions of the Banking
Regulation Act, 1949. Mr. Ashok Barat has ceased to be the Independent Director of the Bank on March 21, 2023 after
completing his term of five years as Independent Director.

During the year ended March 31, 2023, total eleven (11) Board Meetings were held on May 6, 2022, May 7, 2022, June 22,
2022, July 21, 2022, July 30, 2022, September 17, 2022, October 15, 2022, November 5, 2022, January 28, 2023, January
31, 2023 and March 27, 2023.

Details of attendance at the Board Meetings, Directorship, Membership and Chairmanship in other
companies for each Director of the Bank are as follows:

Name of Director Attendance Directorship Directorship Membership Chairmanship

at the Board of other of other of other Listed of other Listed
Meetings Indian public than listed Companies’ Companies’
limited listed Companies Committees # Committees#
Companies

Mr. Farokh N. Subedar* 4 4 1 4 1

Mr. Murali M. Natrajan 11 - - - -

Mr. Amyn Jassani 11 - - - -

Mr. Ashok Barat** 10 4 4 5 4

Mr. Iqbal Khan 10 - - - -

Mr. Rafiq Somani 10 - - - -

Ms. Rupa Devi Singh*** 5 1 5 3 -

Mr. Shabbir Merchant 10 - - - -

Mr. Shaffiq Dharamshi**** 6 - - - -

Mr. Somasundaram PR 10 - - - -

Mr. Tarun Balram 10 - 1 - -

Mr. Thiyagarajan Kumar 11 - - - -

* Appointed as Additional Independent Director w.e.f. October 15, 2022 and Non-Executive Part-Time Chairman w.e.f. January 31, 2023.
** Ceased to be director w.e.f. March 21, 2023
*** Ceased to be director w.e.f. January 21, 2023
**** Ceased to be director w.e.f. January 12, 2023
# Disclosure of Chairmanship & Membership includes only two committees viz. Audit Committee and Stakeholders’ Relationship Committee.

Other than the above 11 Board Meetings, a meeting of Independent Directors was also held on March 27, 2023 as per
the requirement and the same was attended by all the Independent Directors in person.

All Directors then on the Board of the Bank had attended the last Annual General Meeting held on June 22, 2022.

COMPOSITION OF COMMITTEES OF DIRECTORS AS ON MARCH 31, 2023 AND ATTENDANCE

THEREOF DURING THE FINANCIAL YEAR 2022-23

Various Committees of Directors have been appointed by the Board for taking informed decisions in the best interest
of the Bank. These Committees monitor the activities falling within the irrespective terms of reference. The Board’s
Committees are as follows:

Annual Report 2022-23 | 63

DCB Bank Limited

AUDIT COMMITTEE OF BOARD (ACB)

Mr. Thiyagarajan Kumar (w.e.f. March 27,2023) chairs the Audit Committee of Board (ACB) of the Bank. The other
members of ACB are Mr. Amyn Jassani and Mr. Somasundaram PR (w.e.f January 29, 2023). All the Three (3)
members are Independent Directors (IDs) as against the requirement of 2/3rd IDs under the Listing Regulations. Mr.
Shaffiq Dharamshi and Mr. Ashok Barat ceased to be Director of the Bank w.e.f. January 12, 2023 and March 21, 2023
respectively and therefore, members of the ACB. Mr. Thiyagarajan Kumar was appointed as the Chairman of ACB
w.e.f. March 27, 2023.

The Company Secretary acts as the Secretary to ACB. The terms of reference of the ACB are in accordance with
Section 177 of the Companies Act, 2013, terms prescribed by the RBI and SEBI Listing Regulations and, inter-alia,
include the following:

1. Overseeing the Bank’s financial reporting process and the disclosure of its financial information to ensure that the
financial statements are correct, sufficient and credible.

2. Recommending to the Board the appointment, reappointment and, if required, the replacement or removal of the
Statutory Auditors and fixation of their audit fees, and confirm their independence.

3. Approving payment to Statutory Auditors for any other services rendered by them , if authorised by the Board.

4. Reviewing with the management, the quarterly financial statements before submission to the Board for approval
and securing the Certificate from the CFO in terms of the requirements under the Listing Regulations.

5. Evaluate internal financial controls and risk management systems.

6. Review with the management, performance of statutory and internal auditors and adequacy of the internal
control systems.

7. Any other terms of reference as may be included from time to time in the Listing Regulations.

During the year under review, the ACB met on Eleven (11) occasions.

CREDIT COMMITTEE OF BOARD (CCB)

Mr. Somasundaram PR, chairs the Credit Committee of Board (CCB) and other members are Mr. Tarun Balram and
Mr. Farokh N. Subedar (w.e.f. January 29, 2023). The CCB, inter-alia, looks after sanctioning of loans and advances,
approving of One Time Settlements (OTS), etc. Ms. Rupa Devi Singh ceased to be member of the CCB w.e.f. January
21, 2023. The Committee was last reconstituted on January 29, 2023 adding Mr. Farokh N. Subedar as a member of
the CCB.

During the year, the CCB met on eighteen (18) occasions.

RISK MANAGEMENT COMMITTEE OF BOARD (RMC)

Mr. Amyn Jassani chairs the Risk Management Committee of Board (RMC). Other members of the RMC are Mr.
Somasundaram PR, Mr. Tarun Balram and Mr. Murali M. Natrajan. RMC, the apex body of the Bank’s risk management
architecture, is responsible for aligning various risk policies of the Bank with the risk appetite and risk philosophy
articulated by the Board. It approves specific risk policies, including the Credit Policy, Investment Policy, Asset
Liability Management Policy, Outsourcing Policy, Operational Risk Management Policy, KYC Standards and Anti-
Money Laundering measures, etc. The Terms of Reference of the RMC also include Management of the Committees of
Executives viz. Operational Risk Management Committee (ORCO), Asset Liability Management Committee (ALCO),
Credit Risk Management Committee (CRMC), through the review of their minutes and any issues that require the
attention of the RMC, and manage effectively the risk profile of the Bank. Mr. Ashok Barat ceased to be member of the
RMC w.e.f. March 21, 2023.

During the year, the RMC met on four (4) occasions.

64 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

NOMINATION & REMUNERATION COMMITTEE OF BOARD (NRC)

Mr. Somasundaram PR chairs the NRC. Other members are Mr. Amyn Jassani, Mr. Shabbir Merchant, Mr. Farokh Subedar
(w.e.f. January 29, 2023), Mr. Iqbal Khan (w.e.f. January 29, 2023) Except Mr. Iqbal Khan, other four members are
Independent Directors and hence the necessary compliance is ensured. The Committee was reconstituted on January
29, 2023 and Mr. Farokh N. Subedar and Mr. Iqbal Khan were appointed as Members of NRC. Mr. Shaffiq Dharamshi
and Ms. Rupa Devi Singh were ceased to be members of NRC w.e.f. January 12, 2023 and January 21, 2023 respectively.
The NRC, inter-alia, looks after the due diligence and recommendation process for appointment/re-appointment of
Directors, evaluation of performance of Directors, remuneration, ESOPs, etc. to the MD & CEO, Key Managerial Personnel
of the Bank and other Senior Management team of the Bank, monitoring of the compensation policy of the Bank, etc.
Board of Directors had approved the criteria for performance evaluation of the Board, including Independent Directors.

During the year, the NRC met on seven (7) occasions.

STAKEHOLDERS’ RELATIONSHIP COMMITTEE OF BOARD (SRC)

Mr. Shabbir Merchant chairs the Stakeholders’ Relationship Committee of Board (SRC). The other members are Mr.
Amyn Jassani and Mr. Rafiq Somani. The SRC monitors redressal of grievances of the security holders including
complaints related to transfer/transmission of shares, non-receipt of dividend, non-receipt of annual reports, issue of
new/duplicate certificates interest payment on Bonds, etc. The SRC reviews the measures taken for effective exercise
of voting rights by Shareholders, adherence to the service standards adopted and the various measures and initiatives
taken by the Bank for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/
annual reports/statutory notices by the Shareholders. The SRC also takes note of number of transfers processed, issue
of fresh share certificates, top Shareholders, pattern of shareholding, etc. During the financial year 2022-23, 04 (Four)
complaints regarding non-receipt of share certificates, non-receipt of dividends and updating of KYC were received
and the same were appropriately resolved/responded. There was no request for transmission, deletion, change in name
etc. was pending as on March 31, 2023. The Company Secretary acts as the Secretary and has been appointed as the
Compliance Officer of the SRC.

During the year, the SRC met on four (4) occasions.

FRAUD REPORTING & MONITORING COMMITTEE OF BOARD (FRMC)

Pursuant to the directives of the RBI to all commercial banks, the Bank has constituted a Fraud Reporting and
Monitoring Committee of Board (FRMC) for monitoring cases of fraud involving amounts of ` 1 crore or more. Mr.
Amyn Jassani, Mr. Shabbir Merchant, Mr. Murali M. Natrajan and Mr. Thiyagarajan Kumar (w.e.f. September 03, 2022) are
the other members. The Committee was last reconstituted on September 03, 2022. Ms. Rupa Devi Singh and Mr. Ashok
Barat were ceased to be Chairperson and members of FRMC w.e.f. January 21, 2023 and March 21, 2023 respectively.

During the year, the FRMC met on four (4) occasions.

CUSTOMER SERVICE COMMITTEE OF BOARD (CSC)

Mr. Farokh N. Subedar Chairs the Customer Service Committee of Board w.e.f. January 29, 2023. The other members
of the Customer Service Committee of Board (CSC) are Mr. Amyn Jassani, Mr. Thiyagarajan Kumar (w.e.f. September
03, 2022) and Mr. Murali M. Natrajan. The CSC monitors enhancing the quality of customer services and improving the
level of customer satisfaction for all categories of clientele at all times. It also oversees the functioning of Standing
Committee of Executives on Customer Service.

During the year, the CSC met on four (4) occasions.

CAPITAL RAISING COMMITTEE OF BOARD (CRC)

The Board of Directors at its meeting held on January 28, 2023 discontinued this Committee.

Annual Report 2022-23 | 65

DCB Bank Limited

INFORMATION TECHNOLOGY STRATEGY COMMITTEEOF BOARD (ITSC)

Mr. Rafiq Somani Chairs Information Technology Strategy Committee of Board (ITSC). The other members are Mr. Iqbal
Khan and Mr. Murali M. Natrajan (MD & CEO). Mr. R. Venkattesh, Head Op., Tech, HR & CIO is also a member of the ITSC
as a Management Representative. ITSC, inter alia, approves IT related strategy, road map for initiatives, budget and
investments to support the Bank’s growth strategies in accordance with the Business Plan.

During the year, the ITSC met on four (4) occasions.

CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE

(“CSR AND ESG COMMITTEE”)

Mr. Farokh N. Subedar chairs the CSR and ESG Committee w.e.f. January 29, 2023. The other members of the CSR
and ESG Committee are Mr. Rafiq Somani, Mr. Thiyagarajan Kumar (w.e.f. September 03, 2022) and Mr. Murali M.
Natrajan, MD & CEO. The Board of Directors at its meeting held on January 28, 2023 had renamed the Corporate
Social Responsibility Committee of Board to Corporate Social Responsibility & Environment, Social and Governance
Committee of Board.

The CSR & ESG Committee formulates and recommends to the Board, the CSR Policy of the Bank and also recommends
amount of expenditure to be incurred and monitors the CSR activities of the Bank.

During the year, the CSC met on four (4) occasions.

WILFUL DEFAULTERS REVIEW COMMITTEE OF BOARD (WDRC)

The members of the Wilful Defaulters – Review Committee are Mr. Murali M. Natrajan (Chairman) and any two
Independent Directors of the Bank depending upon their availability, as its members.

No meeting of the Committee was held during the year under review.

SUMMARY OF ATTENDANCE OF DIRECTORS FOR FY 2022-23

Sr. Name of Director Appointed On BM ACB CCB CRC RMC FRMC NRC SRC CSC ITSC CSR WDRC
No. #

No. of Meetings 11 11 18 0 4 4 7 4 4 4 4 0
held
1. Mr. Farokh N. October 15, 2022 4 - 4 0 - - 1 - 1 - 1
Subedar *
2. Mr. Murali M. April 29, 2009 11 - - 0 4 4 - - 4 4 4
Natrajan
3. Mr. Amyn Jassani January 25, 2020 11 11 - 0 4 4 7 4 4 - -
4. Mr. Ashok Barat** March 22, 2018 10 10 - 0 3 3 - - - - -
5. Mr. Iqbal Khan July 15, 2017 10 - - 0 - - 1 - - 2 - -
6. Mr. Rafiq Somani March 09, 2020 10 - - 0 - - - 4 - 4 4
7. Ms. Rupa Devi January 22, 2015 5 - 7 0 - 2 4 - 2 - 3
Singh***
8. Mr. Shabbir January 25, 2020 10 - - 0 - 3 6 4 - - -
Merchant
9. Mr. Shaffiq January 13, 2015 6 7 - 0 - - 2 - - - -
Dharamshi****
10. Mr. Somasundaram January 25, 2020 10 1 17 0 3 - 7 - - - -
PR
11. Mr. Tarun Balram January 24, 2022 10 - 18 0 4 - - - - - -
12. Mr. Thiyagarajan February 10, 2022 11 11 - 0 - 2 - - 3 - 2
Kumar
* Appointed as Additional Independent Director w.e.f. October 15, 2022 and Non-Executive Part-Time Chairman w.e.f. January 31, 2023.

66 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

** Ceased to be director w.e.f. March 21, 2023

*** Ceased to be director w.e.f. January 21, 2023
# this Committee discontinued with effect from January 28, 2023

Note: As per the regulatory requirement, a meeting of Independent Directors was also held on March 27, 2023 and the
same was attended by all the Independent Directors on Board.

REMUNERATION OF DIRECTORS

On the recommendation of the Board, the Reserve Bank of India vide its letter DoR.GOV.No.S6961/29.03.002/2022-23
dated January 31, 2023 had approved the appointment of Mr. Farokh Nariman Subedar as Non-Executive Part Time
Chairman of the Bank for a period of three years with effect from January 31, 2023 at fixed honorarium of ` 2,400,000
per annum plus reimbursement of actual business-related expenses and one (1) club membership in addition to the
sitting fee for attending Board and Committee meetings.

As approval of the Shareholders for payment of the aforesaid honorarium to Mr. Farokh Subedar is sought in the
forthcoming 28th AGM, he has been paid only sitting fees for attending the meetings of the Board / Committees
during the year 2022-23.

The Bank has in place service contract / agreement with the Managing Director & CEO indicating therein all terms and
conditions of his appointment including the notice period.

Mr. Murali M. Natrajan is the Managing Director & Chief Executive Officer (MD & CEO) of the Bank. The details of the
remuneration paid to him during FY 22-23 basis RBI approvals vide its letter No. DoR.GovNo.7957/29.03.001/2022-23
dated March 14, 2023 are as follows:

Particulars Amount (`)*

Basic 23,990,400
Allowances and Perquisite value 17,339,341
Contribution to Provident Fund 2,878,848
No. of CSARs granted during the year (2022-23) 131,348

RBI has approved variable pay of ` 7,500,000 for Managing Director & CEO for FY 21-22 and the applicable payment
has been released in the month of April 2023 in line with RBI guidelines.

*Perquisites (evaluated as per Income Tax Rules wherever applicable and at actual cost to the Bank otherwise) such
as furnished accommodation, gas, electricity, water and furnishing, club fees, personal accident insurance, use of car
and telephone at residence, medical reimbursement, leave and leave travel concession were provided in accordance
with the policy of the Bank in this regard. The above figures exclude perquisite value of ESOPs exercised, if any, during
the Financial Year 2022-23. No sitting fees were paid to him for attending the meetings of the Board and Committees
thereof.

Mr. Natrajan has exercised 150,000 stock options during the year under review.

Other than the Honorarium payable to the Non- Executive Part-time Chairman, only sitting fees are paid to the Non-
Executive Directors during the year as under:

Annual Report 2022-23 | 67

DCB Bank Limited

Name of Director Sitting Fees (`)

Mr. Amyn Jassani 2,980,000
Mr. Ashok Barat+++ 1,760,000
Mr. Farokh N. Subedar 750,000
Mr. Iqbal Khan 910,000
Mr. Rafiq Somani 1,450,000
Ms. Rupa Devi Singh++ 1,470,000
Mr. Shabbir Merchant 1,540,000
Mr. Tarun Balram 2,310,000
Mr. Shaffiq Dharamshi *+ Sitting fees waived
Mr. Somasundaram PR * Sitting fees waived
Mr. Thiyagarajan Kumar ** 790,000
Total 13,960,000
*Waived off their sitting fees
** Had waived off sitting fees till November 2022.
+ Ceased to be director w.e.f. January 12, 2023
++Ceased to be director w.e.f. January 21, 2023
+++ Ceased to be director w.e.f. March 21, 2023

No single Non-Executive Director is paid remuneration exceeding fifty percent of the total annual remuneration paid
to all the Non-Executive Directors during the financial year 2022-23.

DECLARATION GIVEN BY INDEPENDENT DIRECTORS

All the Independent Directors have given the necessary declarations to the Bank as required under sub section (6) of
Section 149 of the Companies Act, 2013.

GENERAL BODY MEETINGS HELD DURING THE LAST THREE YEARS

Date Venue Special Resolutions passed

27thAGM Video Conferencing / i) Raising of Funds by issue of bonds / debentures/securities on
22.06.2022 Other Audio Video Visual Private Placement basis.
at 2.30 p.m. Means (VC/OAVM) ii) Issue of Equity Shares to Qualified Institutional Buyers through
Qualified Institutions Placement
26thAGM Video Conferencing / i) Increase in borrowing powers.
13.08.2021 Other Audio Video Visual ii) Raising of Funds by issue of bonds / debentures/securities on
at 2.30 p.m. Means (VC/OAVM) Private Placement basis.
iii) Issue of Equity Shares to Qualified Institutional Buyers through
Qualified Institutions Placement

68 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

25thAGM Video Conferencing / i) Re-appointment of Ms. Rupa Devi Singh (DIN- 02191943) as an
11.07.2020 Other Audio Video Visual Independent Director
at 2.30 p.m. Means (VC/OAVM) ii) Increase in borrowing powers
iii) Raising of Funds by issue of bonds / debentures/securities on
Private Placement basis.
iv) Issue of Equity Shares to Qualified Institutional Buyers through
Qualified Institutions Placement

Postal Ballot:

Details of resolutions passed through Postal Ballot:

During the financial year 2022-23, the Bank had obtained approval of shareholders for the appointment of Mr. Farokh
Nariman Subedar (DIN:00028428) as an Independent Director w.e.f. October 15, 2022 by way of a Special resolution
through a Postal Ballot. Postal Ballot Notice dated November 05, 2022 was sent to total 166,661 shareholders of the
Bank, who had registered their e-mail IDs as on November 11, 2022, (the Cut-off date), seeking their approval.

The Bank had appointed M/s. S. N. Ananthasubramanian & Co, Practicing Company Secretaries as the scrutinizer for
conducting the Postal Ballot process. Accordingly, the postal Ballot was conducted by the scrutinizer and a report was
submitted to the Managing Director & CEO and to the Company Secretary.

Out of the 166,661 shareholders of the Bank to whom the Notice was sent, 557 members comprising of 16,65,23,943
equity shares representing 53.51% of the issued and paid-up share capital participated in the e-voting process. The
breakup of the votes and the voting result were as given in the table below:

Resolution No. 1: Appointment of Mr. Farokh Nariman Subedar (DIN:00028428) as an Independent Director

Particulars Number of Valid Percentage

Voters (via e-voting) Votes (via e-voting) %

Assent 517 16,65,14,269 99.9942

Dissent 40 9,674 0.0058
Total 557 16,65,23,943 100.0000

Accordingly, the Special Resolution as contained in the Item No. 1 of the Notice of Postal Ballot dated November 05,
2022 was declared as passed with requisite majority.

No Resolution is proposed to be passed through Postal Ballot in the notice of the proposed Twenty Eighth Annual
General Meeting to be held on June 22, 2023.

GENERAL INFORMATION FOR SHAREHOLDERS

Financial Calendar - For each calendar quarter, the financial results are reviewed and taken on record by the Board
within the prescribed timeline. The Audited Annual Accounts as at March 31 are approved by the Board, after view
thereof by the Audit Committee of the Board.

The Annual General Meeting to consider such annual accounts is held within the prescribed timeline.

LIST OF ALL CREDIT RATINGS OBTAINED BY THE BANK

Annual Report 2022-23 | 69

DCB Bank Limited

Refer the Directors’ Report for all credit ratings obtained by the Bank.

DETAILS OF UTILISATION OF FUNDS RAISED THROUGH PREFERENTIAL ALLOTMENT OR

QUALIFIED INSTITUTIONSPLACEMENT AS SPECIFIED UNDER REGULATION 32(7A) OF SEBI (LODR)
REGULATIONS, 2015

The Bank has not raised any fund through Preferential Allotment or Qualified Institutions Placement as specified under
regulation 32 (7A) of the SEBI (LODR) Regulations, 2015, during the financial year ended March 31, 2023.

SHAREHOLDERS HOLDING 1% AND ABOVE SHARES IN THE BANK AS ON MARCH 31, 2023

Sr Name No. of Shares % To Capital

1 AGA KHAN FUND FOR ECONOMIC DEVELOPMENT SA 43,750,052 14.0449
2 TATA MUTUAL FUND - TATA SMALL CAP FUND (All Scheme) 15,404,022 4.9451
3 HDFC SMALL CAP FUND 13,948,722 4.4779
4 DSP SMALL CAP FUND 13,158,269 4.2241
5 INDIA ADVANTAGE FUND S4 I 12,473,881 4.0044
6 FRANKLIN INDIA SMALLER COMPANIES FUND 10,449,095 3.3544
7 ICICI PRUDENTIAL SMALL CAP FUND (All Scheme) 10,297,782 3.3058
8 OMAN INDIA JOINT INVESTMENT FUND II 9,198,202 2.9529
9 STEINBERG INDIA EMERGING OPPORTUNITIES FUND LIMITED 9,000,000 2.8892
10 CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO SMALL CAP FUND 7,112,169 2.2832
11 INVESCO INDIA MULTICAP FUND (All Scheme) 4,788,407 1.5372
12 MAX LIFE INSURANCE COMPANY LIMITED A/C - 4,450,939 1.4289
ULIF01311/02/08LIFEHIGHGR104 - HIGH GROWTH FUND
13 UTI SMALL CAP FUND (All Scheme) 3,556,016 1.1416
Total 157,587,556 50.5896

DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2023

Sr Number of Equity shares held Number of % of Total Shares % of Total

No Shareholders Shareholders Shares
1 1 to 500 160,946 87.4835 18,547,130 5.9541
2 501 to 1000 11,125 6.0471 8,760,498 2.8123
3 1001 to 2000 6,289 3.4185 9,217,176 2.9589
4 2001 to 3000 1,936 1.0523 4,887,419 1.5690
5 3001 to 4000 912 0.4957 3,248,549 1.0429
6 4001 to 5000 696 0.3783 3,256,043 1.0453
7 5001 to 10000 1,098 0.5968 8,003,991 2.5695
8 10001 and above 971 0.5278 255,580,927 82.0480
TOTAL : 183,973 100 311,501,733 100

Out of the above 183,973 folios, 169,595 folios comprise 307,709,630 shares forming 98.78% of the issued and paid up
share capital, are in dematerialized mode. Another 14,378 folios comprise 3,792,103 shares constituting 1.22% of the
issued and paid up share capital ,are held in physical mode. Promoters’ entire shareholding is in dematerialized mode.

70 | Annual Report 2022-23

 DCB Bank Limited-Shareholding Pattern as on March 31, 2023

Table I - Summary Statement holding of specified securities

Cat- Category of Nos of No. of fully No. of No. of Total nos. Shareholding Number of Voting Rights held in each No. of No. of No. of Sharehold- Number of Number Number
egory shareholder share paid up eq- Partly shares shares held as a % of total class of securities Shares Shares Shares Un- ing , as a % Locked in of Shares of equity
holders uity shares paid-up underlying no. of shares Under- Underly- derlying assuming full shares pledged or shares held
held equity Depository (calculated lying ing Out- Outstand- conversion of otherwise in demateri-
shares Receipts as per SCRR, Outstand- standing ing con- convertible encumbered alized form
held 1957) ing con- Warrants vertible securities ( as
No of Voting (XIV) Rights Total as vertible securities a percentage No. As a % No. As a %
a % of securities and No. of of diluted (a) of total (a) of total
(A+B+C) Warrants share capital) Shares Shares
Class eg: X Class Total
eg: y held held
(b) (b)
(I) (II) (III) (IV) (V) (VI) (VII) = (VIII)As a % (IX) (X) (XI) (XI) (a) (XI)= (XII) (XIII) (XIV)
(IV)+(V)+ of (A+B+C2) (VII)+(X)
(VI) As a % of
(A+B+C2)
(A) Promoter 2 46200234 0 0 46200234 14.8315 46200234 0 46200234 14.9318 0 0 0 14.8315 0 0 0 0 46200234
& Promoter
Group
(B) Public 180308 265301499 0 0 265301499 85.1685 263207737 263207737 85.0682 0 0 0 85.1685 0 0 NA NA 261509396

(C) Non 0 0 0 0 0 0 NA NA
Promoter -
Non Public
(C1) Shares 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0
Underlying
DRs
(C2) Shares 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0
Held By
Employee
Trust
Total 180310 311501733 0 0 311501733 100 309407971 0 309407971 100 0 0 0 100 0 0 0 0 307709630
Corporate Overview
Management Reports Financial Statements

Annual Report 2022-23 | 71

 DCB Bank Limited
Table II - Statement showing shareholding pattern of the Promoter and Promoter Group
Sr. Category & Share PAN Nos. No. of No. of No. of Total nos. Sharehold- Number of Voting Rights held in No. of No. of No. of Sharehold- Number of Number Number
Name of the holder of fully paid Partly shares shares ing as a % of each class of securities Shares Shares Shares ing , as a % Locked in of Shares of equity
shareholders Type i.e. share up equity paid-up underlying held Total no. of Under- Underly- Under- assuming shares pledged or shares
pro- hold- shares equity Depository shares (cal- lying Out- ing Out- lying full conver- otherwise held in
moter OR ers held shares Receipts culated as standing standing Outstand- sion of encum- demate-
promoter held per SCRR, convert- Warrants ing con- convertible bered rialized
group en- 1957) No of Voting (XIV) Total as a ible secu- vertible securities No. As a % No. As a % form
tity (except
DCB Bank Limited

Rights % of Total rities securities ( as a per- (a) of total (a) of total

promoter) Class Class Total Voting and No. of centage of Shares Shares
eg: X eg: y rights Warrants diluted share held held (b)
(A+B+C) capital) (b)

72 | Annual Report 2022-23

(I) (II) (III) (IV) (V) (VI) (VII) = (VIII) As a % (IX) (X) (XI) (XI) (a) (XI)= (XII) (XIII) (XIV)
(IV)+(V)+of (A+B+C2) (VII)+(X)
(VI) As a % of
(A+B+C2)
1 Indian
(a) Individuals / Hindu 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Undivided Family
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(b) Central 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Government / State
Government(s)
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(c) Financial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Institutions / Banks
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(d) Any Other (Specify) 1 2450182 0 0 2450182 0.7866 2450182 0 2450182 0.7919 0 0 0 0.7866 0 0 0 0 2450182
Bodies Corporate 1 2450182 0 0 2450182 0.7866 2450182 0 2450182 0.7919 0 0 0 0.7866 0 0 0 0 2450182
Platinum Jubilee Promoter 1 2450182 0 0 2450182 0.7866 2450182 0 2450182 0.7919 0 0 0 0.7866 0 0 0 0 2450182
Investments Ltd. Group
Sub Total (A)(1) 1 2450182 0 0 2450182 0.7866 2450182 0 2450182 0.7919 0 0 0 0.7866 0 0 0 0 2450182
2 Foreign
(a) Individuals (Non- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Resident Individuals
/ Foreign Individuals)
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(b) Government 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(c) Institutions 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(d) Foreign Portfolio 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Investor
Name (xyz..) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(e) Any Other (Specify) 1 43750052 0 0 43750052 14.0449 43750052 0 43750052 14.1399 0 0 0 14.0449 0 0 0 0 43750052
Bodies Corporate 1 43750052 0 0 43750052 14.0449 43750052 0 43750052 14.1399 0 0 0 14.0449 0 0 0 0 43750052
Aga Khan Fund Promoter 1 43750052 0 0 43750052 14.0449 43750052 0 43750052 14.1399 0 0 0 14.0449 0 0 0 0 43750052
For Economic
Development SA
Sub Total (A)(2) 1 43750052 0 0 43750052 14.0449 43750052 0 43750052 14.1399 0 0 0 14.0449 0 0 0 0 43750052
Total Shareholding 2 46200234 0 0 46200234 14.8315 46200234 0 46200234 14.9318 0 0 0 14.8315 0 0 0 0 46200234
Of Promoter And
Promoter Group
(A)= (A)(1)+(A)(2)
Details of Shares which remain unclaimed may be given here along with details such as number of shareholders, outstanding shares held in demat/unclaimed f account, voting rights which are frozen etc.: NIL
 DCB Bank Limited
B Table III - Statement showing shareholding pattern of the Public shareholder
Category & PAN Nos. of No. of Partly No. of Total nos. Share- Number of Voting Rights held in each No. of Total Number of Number Number Sub-categorization of
Name of the share fully paid paid-up shares shares holding class of securities Shares Share- Locked in of Shares of equity shares
shareholders hold- up eq- equity under- held % cal- Under- holding, shares pledged or shares
ers uity shares shares lying culated lying as a % otherwise held in
held held Depos- (as per Out- assum- encumbered demate-
itory SCRR, stand- ing full rialized
Re- 1957) No of Voting Rights Total ing conver- No. As a % No. As a form Shareholding (No. of
ceipts As a % as a % convert- sion of (a) of total (a) % of shares) under
of (A of Total ible se- convert- Shares total
Class X Class Total held Shares Sub- Sub- Sub-
+B+ Y
Voting curities ible catego- cate- catego-
C2) rights (includ- securi- (b) held
(b) ry (i) gory ry (iii)
ing war- ties (as a (ii)
rants) percent-
age of
diluted
share
capital)
(I) (II) (III) (IV) (V) (VI) (VII) = (VIII) (IX) (X) (XI) (XII) (XIII) (XIV) (XV)
(IV)+(V)+
(VI)
1. Institutions (Domestic)
(a) Mutual Funds 15 88257710 0 0 88257710 28.333 88257710 0 88257710 28.525 0 28.333 0 0 NA NA 88257710 0 0 0
Tata Mutual Fund 15404022 0 0 15404022 4.945 15404022 0 15404022 4.979 0 4.945 0 0 NA NA 15404022 0 0 0
- Tata Small Cap
Fund
HDFC Small Cap 13948722 0 0 13948722 4.478 13948722 0 13948722 4.508 0 4.478 0 0 NA NA 13948722 0 0 0
Fund
DSP Small Cap 13158269 0 0 13158269 4.224 13158269 0 13158269 4.253 0 4.224 0 0 NA NA 13158269 0 0 0
Fund
Franklin 10449095 0 0 10449095 3.354 10449095 0 10449095 3.377 0 3.354 0 0 NA NA 10449095 0 0 0
India Smaller
Companies Fund
ICICI Prudential 10297782 0 0 10297782 3.306 10297782 0 10297782 3.328 0 3.306 0 0 NA NA 10297782 0 0 0
Smallcap Fund
Canara Robeco 7112169 0 0 7112169 2.283 7112169 0 7112169 2.299 0 2.283 0 0 NA NA 7112169 0 0 0
Mutual Fund A/C
Canara Robeco
Small Cap Fund
Invesco India 4788407 0 0 4788407 1.537 4788407 0 4788407 1.548 0 1.537 0 0 NA NA 4788407 0 0 0
Corporate Overview

Multicap Fund
UTI - Banking 3556016 0 0 3556016 1.142 3556016 0 3556016 1.149 0 1.142 0 0 NA NA 3556016 0 0 0
And Financial
Services Fund
(b) Venture Capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Funds
(c) Alternate 11 28600449 0 0 28600449 9.182 28600449 0 28600449 9.244 0 9.182 0 0 NA NA 28600449 0 0 0
Investment Funds
India Advantage 12473881 0 0 12473881 4.004 12473881 0 12473881 4.032 0 4.004 0 0 NA NA 12473881 0 0 0
Fund S4 I
Oman India 9198202 0 0 9198202 2.953 9198202 0 9198202 2.973 0 2.953 0 0 NA NA 9198202 0 0 0
Joint Investment
Fund II
(d) Banks 1 13 0 0 13 0 13 0 13 0 0 0 0 0 NA NA 13 0 0 0
(e) Insurance 3 7386727 0 0 7386727 2.371 7386727 0 7386727 2.387 0 2.371 0 0 NA NA 7386727 0 0 0
Companies
Management Reports Financial Statements

Annual Report 2022-23 | 73

 Category & PAN Nos. of No. of Partly No. of Total nos. Share- Number of Voting Rights held in each No. of Total Number of Number Number Sub-categorization of
Name of the share fully paid paid-up shares shares holding class of securities Shares Share- Locked in of Shares of equity shares
shareholders hold- up eq- equity under- held % cal- Under- holding, shares pledged or shares
ers uity shares shares lying culated lying as a % otherwise held in
held held Depos- (as per Out- assum- encumbered demate-
itory SCRR, stand- ing full rialized
Re- 1957) No of Voting Rights Total ing conver- No. As a % No. As a form Shareholding (No. of
ceipts As a % as a % convert- sion of (a) of total (a) % of shares) under
of (A of Total ible se- convert- Shares total
Class X Class Total held Shares Sub- Sub- Sub-
+B+ Y
Voting curities ible catego- cate- catego-
C2) rights (includ- securi- (b) held
(b) ry (i) gory ry (iii)
ing war- ties (as a (ii)
rants) percent-
DCB Bank Limited

age of
diluted
share
capital)
(I) (II) (III) (IV) (V) (VI) (VII) = (VIII) (IX) (X) (XI) (XII) (XIII) (XIV) (XV)

74 | Annual Report 2022-23

(IV)+(V)+
(VI)
Max Life 1 4450939 0 0 4450939 1.429 4450939 4450939 1.439 1.429 0 NA NA 4450939 0 0 0
Insurance
Company
Limited A/C -
Ulif01311/02/08
lifehighgr104
- High Growth
Fund
(f) Provident / 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Pension Funds
(g) Asset 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Reconstruction
Company
(h) Sovereign Wealth 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Funds
(i) NBFCs registered 4 239037 0 0 239037 0.077 239037 0 239037 0.077 0 0.077 0 0 NA NA 239037 0 0 0
with RBI
(j) Other Financial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Institutions
(k) Any Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
(Specify)
Sub-Total (B)(1) 34 124483936 0 0 124483936 39.963 124483936 0 124483936 40.233 0 39.963 0 0 NA NA 124483936 0 0 0
2. Institutions (Foreign)
(a) Foreign Direct 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Investment
(b) Foreign Venture 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Capital Investors
(c) Sovereign Wealth 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Funds
(d) Foreign Portfolio 101 34591132 0 0 34591132 11.105 34591132 0 34591132 11.180 0 11.105 0 0 NA NA 34591132 0 0 0
Investor
(Category I)
Steinberg India 9000000 0 0 9000000 2.889 9000000 0 9000000 2.909 0 2.889 0 0 NA NA 9000000 0 0 0
Emerging
Opportunities
Fund Limited
(e) Foreign Portfolio 8 3645607 0 0 3645607 1.170 3645607 0 3645607 1.178 0 1.170 0 0 NA NA 3645607 0 0 0
Investor
(Category II)
(f) Overseas 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Depositories
(holding DRs)
(balancing figure)
(g) Any Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
(Specify)
 Category & PAN Nos. of No. of Partly No. of Total nos. Share- Number of Voting Rights held in each No. of Total Number of Number Number Sub-categorization of
Name of the share fully paid paid-up shares shares holding class of securities Shares Share- Locked in of Shares of equity shares
shareholders hold- up eq- equity under- held % cal- Under- holding, shares pledged or shares
ers uity shares shares lying culated lying as a % otherwise held in
held held Depos- (as per Out- assum- encumbered demate-
itory SCRR, stand- ing full rialized
Re- 1957) No of Voting Rights Total ing conver- No. As a % No. As a form Shareholding (No. of
ceipts As a % as a % convert- sion of (a) of total (a) % of shares) under
of (A of Total ible se- convert- Shares total
Class X Class Total held Shares Sub- Sub- Sub-
+B+ Y
Voting curities ible catego- cate- catego-
C2) rights (includ- securi- (b) held
(b) ry (i) gory ry (iii)
ing war- ties (as a (ii)
rants) percent-
age of
diluted
share
capital)
(I) (II) (III) (IV) (V) (VI) (VII) = (VIII) (IX) (X) (XI) (XII) (XIII) (XIV) (XV)
(IV)+(V)+
(VI)
Sub-Total (B)(2) 109 38236739 0 0 38236739 12.275 38236739 0 38236739 12.358 0 12.275 0 0 NA NA 38236739 0 0 0
3. Central Government/ State Government(s)
(a) Central 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Government /
President of India
(b) State 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Government /
Governor
(C) Shareholding 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
by Companies
or Bodies
Corporate where
Central / State
Government is a
promoter
Sub-Total (B)(3) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
4. Non-Institutions
(a) Associate 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
companies /
Subsidiaries
(b) Directors and 1 2550000 0 0 2550000 0.819 2550000 0 2550000 0.824 0 0.819 0 0 NA NA 2550000 0 0 0
their relatives
(excluding
Corporate Overview

Independent
Directors
and nominee
Directors)
(c) Key Managerial 1 1500 0 0 1500 0.001 1500 0 1500 0.001 0 0.001 0 0 NA NA 1500 0 0 0
Personnel
(d) Relatives of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
promoters (other
than ‘immediate
relatives’ of
promoters
disclosed under
‘Promoter and
Promoter Group’
category)
(e) Trusts where any 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
person belonging
to 'Promoter
and Promoter
Group' category is
'trustee', 'benefi-
ciary', or 'author of
the trust''
Management Reports Financial Statements

Annual Report 2022-23 | 75

 Category & PAN Nos. of No. of Partly No. of Total nos. Share- Number of Voting Rights held in each No. of Total Number of Number Number Sub-categorization of
Name of the share fully paid paid-up shares shares holding class of securities Shares Share- Locked in of Shares of equity shares
shareholders hold- up eq- equity under- held % cal- Under- holding, shares pledged or shares
ers uity shares shares lying culated lying as a % otherwise held in
held held Depos- (as per Out- assum- encumbered demate-
itory SCRR, stand- ing full rialized
Re- 1957) No of Voting Rights Total ing conver- No. As a % No. As a form Shareholding (No. of
ceipts As a % as a % convert- sion of (a) of total (a) % of shares) under
of (A of Total ible se- convert- Shares total
Class X Class Total held Shares Sub- Sub- Sub-
+B+ Y
Voting curities ible catego- cate- catego-
C2) rights (includ- securi- (b) held
(b) ry (i) gory ry (iii)
ing war- ties (as a (ii)
rants) percent-
DCB Bank Limited

age of
diluted
share
capital)
(I) (II) (III) (IV) (V) (VI) (VII) = (VIII) (IX) (X) (XI) (XII) (XIII) (XIV) (XV)

76 | Annual Report 2022-23

(IV)+(V)+
(VI)
(f) Investor 1 712495 0 0 712495 0.229 0 0 0 0 0 0.229 0 0 NA NA 712495 0 0 0
Education and
Protection Fund
(IEPF)
(g) Resident 173217 54262963 0 0 54262963 17.420 54262963 0 54262963 17.538 0 17.420 0 0 NA NA 50608844 0 0 0
Individuals
holding nominal
share capital up
to `2 lakhs.
(h) Resident 264 17642529 0 0 17642529 5.664 17642529 0 17642529 5.702 0 5.664 0 0 NA NA 17642328 0 0 0
Individuals
holding nominal
share capital
in excess of `2
lakhs.
(i) Non Resident 2974 4536243 0 0 4536243 1.456 4536243 0 4536243 1.466 0 1.456 0 0 NA NA 4534042 0 0 0
Indians (NRIs)
(j) Foreign Nationals 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
(k) Foreign 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0 0
Companies
(l) Bodies Corporate 792 14516816 0 0 14516816 4.660 14516816 0 14516816 4.692 0 4.660 0 0 NA NA 14407547 0 0 0
(m) Any Other 2915 8358278 0 0 8358278 2.683 6977011 0 6977011 2.255 0 2.683 0 0 NA NA 8331965 0 0 0
(Specify)
i Body Corporate- 43 3156625 0 0 3156625 1.013 3156625 0 3156625 1.020 0 1.013 0 0 NA NA 3156625 0 0 0
Ltd Liability-
Partnership-DR
ii Clearing Member 31 63869 0 0 63869 0.021 63869 0 63869 0.021 0 0.021 0 0 NA NA 63869 0 0 0
iii Other Directors/ 6 2945 0 0 2945 0.001 2945 0 2945 0.001 0 0.001 0 0 NA NA 2345 0 0 0
Relative of
Directors
iv Employee 278 1827482 0 0 1827482 0.587 1827482 0 1827482 0.591 0 0.587 0 0 NA NA 1803014 0 0 0
v Hindu Undivided 2550 1898963 0 0 1898963 0.610 1898963 0 1898963 0.614 0 0.610 0 0 NA NA 1898728 0 0 0
Family
vi Trusts 6 25510 0 0 25510 0.008 25510 0 25510 0.008 0 0.008 0 0 NA NA 24500 0 0 0
vii Unclaimed Shares 1 1382884 0 0 1382884 0.444 1617 0 1617 0.001 0 0.444 0 0 NA NA 1382884 0 0 0
Sub-Total (B)(4) 180165 102580824 0 0 102580824 32.931 100487062 0 100487062 32.477 0 32.931 0 0 NA NA 98788721 0 0 0
Total Public 180308 265301499 0 0 265301499 85.169 263207737 0 263207737 85.068 0 85.169 0 0 NA NA 261509396 0 0 0
Shareholding
(B)= (B)(1)+(B)
(2)+(B)(3)+(B)
(4)
 Details of the Shareholders acting as persons in concert for Public
Sr. Number of Shareholders Name of the PAC Number of Shares Percentage of shareholding by PAC
NIL NA NA NA

Details of Shares which remain unclaimed for Public

Sr. Number of Outstanding Shares held in Demat Voting rights Disclosures of notes on shares which remain unclaimed for
Shareholders or unclaimed Suspense Account which are frozen public
1 12667 1381267 1381267 The unclaimed shares which are lying in DCB Bank-Unclaimed
Securities Suspense Account do not carry voting rights as per
Regulation 39(4) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Clause 5A of the erstwhile
Listing Agreement), the voting rights on such Unclaimed
Securities shall remain frozen till the rightful owner of such
shares claims the shares.
Note:
(1) PAN would not be displayed on website of Stock Exchange(s).
(2) The above format needs to be disclosed along with the name of following persons: Institutions/Non-Institutions holding more than 1% of total number of shares
(3) W.r.t. the information pertaining to Depository Receipts, the same may be disclosed in the respective columns to the extent information available and the balance to be
disclosed as held by custodian.
Corporate Overview
Management Reports Financial Statements

Annual Report 2022-23 | 77

 C Table IV - Statement showing shareholding pattern of the Non Promoter- Non Public shareholder

Sr. Category & PAN Nos. of No. of No. of No. of Total nos. Shareholding Number of Voting Rights held in each No. of Total Number of Number Number of
Name of the share fully paid Partly shares shares held as a % Total no. class of securities Shares Sharehold- Locked in of Shares equity shares
shareholders holders up equity paid- under- of shares (cal- Underlying ing , as a % shares pledged or held in de-
shares held up lying culated as per Outstand- assuming full otherwise materialized
equity Depos- SCRR, 1957) ing con- conversion of encumbered form
shares itory vertible convertible
No of Voting (XIV) Rights Total as a No. As a % No. (a) As a %
held Re- securities securities (as
% of Total (a) of total of total
ceipts Class eg: X Class Total a percentage
DCB Bank Limited

Voting Shares Shares

eg: y of diluted
rights (A+ held held
share capital)
B+ C) (b) (b)

78 | Annual Report 2022-23

(I) (II) (III) (IV) (V) (VI) (VII) = (IV)+ (VIII) As a % of (IX) (X) (XI) (XII) (XIII) (XIV)
(V)+ (VI) (A + B+ C2)
1 Custodian/DR 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0
Holder
(a)Name of DR 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0
holder (if
available)
2 Employee 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0
Benefit Trust
/ Employee
Welfare Trust
under SEBI
(Share based
Employee
Benefits and
Sweet Equity)
Regulations,
2021
(a)Name (if 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0
available)
Total Non- 0 0 0 0 0 0 0 0 0 0 0 0 NA NA 0 0 0
Promoter-
Non Public
Shareholding
(C)= (C)(1)+(C)
(2)
Total (A+B+C2) 180310 311501733 0 0 311501733 100 309407971 0 309407971 100 0 100 NA NA 0 0 307709630
Total (A+B+C) 180310 311501733 0 0 311501733 100 309407971 0 309407971 100 0 100 NA NA 0 0 307709630
 Table V- Statement showing details of significant beneficial owners (SBOs)

Name PAN Passport No. Nationality Details of holding/ exercise of right of the SBO in the reporting Date of
in case of a company, whether direct or indirect: creation /
foreign national Shares Voting Rights on Exercise Exercise of acquisition
rights distributable of control significant of significant
dividend or influence beneficial
any other interest
distribution
Details of the significant beneficial owner (SBO)
His Highness Karim GBR505432167 United 14.04 14.04 14.04
Aga Khan Kindom

Details of the registered owner

Aga Khan Fund Switzerland 14.04 14.04 14.04 Yes Yes 03.01.1996
for Economic
Development S.A.
Corporate Overview
Management Reports Financial Statements

Annual Report 2022-23 | 79

DCB Bank Limited

Annexure B COMMODITY PRICE RISK OR FOREIGN

EXCHANGE RISK AND HEDGING ACTIVITIES
Table VI- Statement showing Foreign Ownership
Limits Risk is an integral part of the banking business and the
Bank’s aim is to maintain portfolio quality by making
Particular Board Limits appropriate risk/reward trade - offs. Key risks that the
approved Utilized Bank is exposed to are credit, concentration, market,
Limits (%) country exposure, liquidity, operational and reputation
risk. The Board of Directors of the Bank has oversight of
As on Shareholding date (as 49 27.79
all the risk assumed by the Bank and has delegated its
of 31-03-2023)
power to manage risk to Risk Management Committee
As on the end of previous 1st 49 27.95 (RMC) of the Board. The Bank does not have direct
quarter (as of 31-12-2022) exposure on any commodities. The Bank has exposure
As on the end of previous 2nd 49 28.16 to borrowers which are secured against various
quarter (as of 30-09-2022) commodities.
As on the end of previous 3rd 49 28.00
DATE OF BOOK CLOSURE/RECORD DATE
quarter (as of 30-06-2022)
As on the end of previous 4th 49 24.40 The Bank has fixed June 15, 2023 as the Record Date
quarter (as of 31-03-2022) (Cut-off Date) for the purpose of ascertaining voting rights
of the Members at the 28th AGM and for entitlement of
Notes: Dividend, if approved by the Members.

1). ”Approved limits (%)” means the limit approved by DATE, TIME AND VENUE OF THE ANNUAL
Board of Directors / Shareholders of the listed entity. GENERAL MEETING (AGM)
In case the listed entity has no Board approved limit,
provide details of sectoral / statutory cap prescribed The Twenty Eighty Annual General Meeting of the
by Government / Regulatory Authorities. Bank will be held via Video Conferencing (VC) or Other
Audio-Visual Means (OAVM) on Thursday, June 22, 2023
2). Details of Foreign ownership includes Foreign at 2.30 p.m. (IST).
ownership / Investments as specified in Rule 2(s)
of the foreign Exchange Management (Non-debt RECEIPT OF PROXY FORMS
Instruments) Rule, 2019, made under Foreign
As there is no requirement of physical presence at the
Exchange Management Act, 1999.
meeting, the requirement of appointment of proxy has
OUTSTANDING WARRANTS / ADRS / GDRS / been dispensed with. However, members may appoint
CONVERTIBLE INSTRUMENTS representatives’ u/s 112 and 113 of the Companies Act,
2013 for purpose of voting through remote e-voting or
None. for voting and participation in the meeting.

DATE OF THE BOARD MEETING AT WHICH THE DIVIDEND

FINANCIAL STATEMENTS AND THE QUARTERLY
RESULTS WERE APPROVED Your Board is pleased to recommend a dividend of `1.25
per equity share of `10/- each in respect of this financial
MAY 05, 2023 year ended March 31, 2023. Your Bank has a Dividend
Distribution Policy as approved by the Board and is
FINANCIAL YEAR hosted on the website of the Bank at the link:
https://www.dcbbank.com/pdfs/Dividend_Distribution_
Starting on April 1 and ending on March 31 every year.
Policy.pdf
DIVIDEND PAYMENT DATE
BRANCHES
Dividend as recommended by the Board of Directors, if
The Bank has 427 branches and 396 ATM centers (both
approved at the AGM, shall be paid on or after July 4,
onsite and offsite) as at March 31, 2023.
2023 to the eligible Shareholders.

80 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

CODE FOR PREVENTION OF INSIDER TRADING 8. The Bank has complied with provisions relating to the
constitution of Internal Complaints Committee under
The Bank has adopted a Code for the prevention of the Sexual Harassment of Women at Workplace
insider trading in the shares of the Bank known as (Prevention, Prohibition and Redressal) Act, 2013
“DCB Bank – Code of Conduct for Prohibition of Insider [14 of 2013]. The details of complaints received and
Trading”. The Code, inter-alia, prohibits purchase / sale redressed during the financial year 2022-23 are as
of shares of the Bank by employees while in possession under:
of unpublished price sensitive information relating to
the Bank. a) number of complaints filed during the
financial year: 8
DISCLOSURES
b) number of complaints disposed of
1. The Bank has not entered into any materially during the financial year: 7
significant transaction during the year, which could c) number of complaints pending as on
have a potential conflict of interest between the Bank end of the financial year: 1
and its promoters, directors, management and/or
their relatives, etc. other than the transactions carried COMPLIANCE WITH MANDATORY
out in the normal course of business. REQUIREMENTS

2. During the last 3 years, there were no penalties The Bank has complied with the mandatory and most of
or strictures imposed on the Bank by the Stock the non- mandatory requirements under the Corporate
Exchange(s) and / or SEBI and/or any other statutory Governance as stipulated under the SEBI (Listing Obligations
authorities on matters relating to capital market and Disclosure Requirements) Regulations, 2015.
activities.
COMPLIANCE WITH DISCRETIONARY
3. There are no relationships between the Directors of REQUIREMENTS AS STIPULATED UNDER
the Bank, inter-se. PART E OF SCHEDULE II OF THE SEBI
(LISTING OBLIGATIONS AND DISCLOSURE
The Bank hereby affirms that none of the Bank’s REQUIREMENTS) REGULATIONS, 2015
personnel have been denied access to the ACB.
The Bank has complied with the discretionary
4. The Bank has a policy on Related Party Transactions requirements as stated below:
and the same has been displayed on the bank’s
website at: https://www.dcbbank.com/upload/pdf/ 1. THE BOARD
Policy-on-Related-Party-Transactions-June-2022.pdf
An office of the Chairman is maintained at the Bank’s
5. There were no significant and material orders passed expense and reimbursement of expenses incurred
by the regulators or courts or tribunals impacting the by the Chairman in performance of his/ her duties is
going concern status and the Bank’s operations in allowed.
future.
2. MODIFIED OPINION(S) IN AUDIT REPORT
6. Total fees of `1.45 Crore was paid on an aggregate
basis to the Joint Statutory Auditors during the year There are no audit qualifications in the Bank’s financial
for all the services provided by them to the Bank. statements or qualification or adverse remark by
the Company Secretary in Practice in his Secretarial
7. A certificate dated May 5, 2023 from M/s. S. N. Audit Report for FY 2023 except an observation
Ananthasubramanian & Co., Company Secretaries in regarding appointment of Woman Director on Board
Practice has been obtained certifying that none of of Directors of the Bank. The Bank wishes to continue
the Directors on the Board of the Bank have been in the regime of unqualified financial statements as
debarred or disqualified from being appointed or well as Secretarial Audit Report.
continuing as Directors of the Bank by Securities
and Exchange Board of India/Ministry of Corporate 3. SEPARATE POSTS OF CHAIRMAN AND MD &
Affairs or any such statutory authority. The same is CHIEF EXECUTIVE OFFICER
attached to and forms part of this report.
The Bank already has separate posts for the
Chairman and the MD & CEO.

Annual Report 2022-23 | 81

DCB Bank Limited

4. REPORTING OF INTERNAL AUDITOR shareholders within the stipulated time from the date of
receipt thereof
The Chief Internal Auditor reports directly to the
Audit Committee of the Board. Transfer of Underlying Equity Shares to the
Investor Education and Protection Fund (IEPF)
ECLARATION OF COMPLIANCE WITH THE
D
CODE OF CONDUCT Pursuant to the provisions of Sections 124 and 125 of
the Companies Act, 2013 and the relevant provisions of
All the Directors and Senior Management Personnel the IEPF Authority Rules, the equity shares of the Bank,
have affirmed compliance with the Code of Conduct as on which the dividend has not been claimed for seven
approved and adopted by the Board of Directors consecutive years, are liable to be transferred by the
Bank to the IEPF. Accordingly, the Bank has, transferred
LISTING ON STOCK EXCHANGES 712,495 underlying equity shares, to the IEPF till 31 March,
2023. The voting rights on the said 712,495 shares, shall
In order to impart liquidity and convenience for trading,
remain frozen until the rightful owner claims the shares.
the Equity Shares and Tier II Bonds of the Bank are listed
at the following Stock Exchanges. The annual fees for FY
Amount of unclaimed dividend for FY 2016-17 as well as
2023 have been paid to all the Stock Exchanges where
the underlying shares shall be transferred to IEPF in July
the securities are listed.
2024.

Sr. Name & Address of the Stock ISIN Guidelines to claim Unclaimed Dividends / Shares The
No. Stock Exchanges Code detailed guidelines for claiming Unclaimed Dividends /
1. Equity Shares on BSE Ltd. 532772 INE503A01015 Shares which have been transferred to the designated
P. J. Towers, Dalal Street, account of the IEPF Authority, in accordance with the
Fort, Mumbai - 400 001 said Rules, is available on the website of the Bank at :
https://www.dcbbank.com/pdfs/DCB-Bank-FAQs-and-
Procedure-of-claiming-shares-online-%20from-IEPF-
Authority-through_07-04-2021.pdf
2. Equity Shares on National DCB INE503A01015
Stock Exchange of India BANK Details of Shares lying in Unclaimed Securities
Ltd. (NSE) Exchange Plaza, Suspense Account as on March 31, 2023:
5th Floor, Bandra Kurla
Complex,
Bandra (East) Particulars Number of Shares
3 Tier II Bonds issued on BSE – INE503A08051 Shareholders
March 28, 2023 have 974740 / Folios
been listed on BSE NSE – Opening Balance as on 12,771 1,405,167
and NSE under WDM DCB33 April 1, 2022
segment
Add: Transfer during the 0 0
Names of Depositories in India for year 2022-23
dematerialisation of Equity Shares and Tier II Less: Claim received and 104 23, 900
Bonds. shares transferred*
National Securities Depository Limited (NSDL) Less: Shares transferred 0 0
Central Depository Services (India) Limited (CDSL) to Investor Education
Protection Fund
The Bank’s shares/bonds are traded compulsorily in
Closing Balance as on 12,667 1,381,267
dematerialized (Demat) mode. The dematerialized
March 31, 2023**
shares/bonds are transferable through the depository
system. Transfer/transmission of Equity Shares in *Number of shareholders who approached the Bank for
physical mode are processed by the Registrars and Share the transfer of shares from the suspense account.
Transfer Agents viz. Link Intime India Private. Ltd., and **The voting rights on the aforesaid shares shall remain
approved by the Share Transfer Committee of the Bank. frozen until the rightful owner claims the shares.
Link Intime India Private. Ltd. processes the requests of

82 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Guidelines to claim the shares from the Securities Registrars and Transfer Agents.
Suspense Account is available on the website of the Bank
LINK INTIME INDIA PRIVATE LTD.
at: https://www.dcbbank.com/for-shareholder/shares-
CIN: U67190MH1999PTC118368
transferred-to-unclaimed-securities-suspense-account
C-101, 247 Park, L. B. S. Marg,
MANAGEMENT DISCUSSIONS AND ANALYSIS Vikhroli (West), Mumbai –400083.
REPORT Tel No: +912249186000 (Board Line)
022-49186270 (Investor Helpdesk)
The Management Discussion and Analysis Report is Fax: +91 22 49186060
included in the Directors’ Report and forms a part of E-mail id: rnt.helpdesk@linkintime.co.in
Corporate Governance. Website: www.linkintime.co.in
Counter Timing: 10 a.m. to 4 p.m. Monday to Friday
MEANS OF COMMUNICATION TO (except National Holidays)
SHAREHOLDERS
Shareholders/Investors can also send their queries
Financial results and all materially important through-mail to the Bank at investorgrievance@dcbbank.
communications are promptly shared with the Stock com. This designated e-mail has also been displayed on
Exchanges. Bank’s results are also published in the Bank’s website www.dcbbank.com under the section
newspapers pursuant to applicable regulatory provisions ‘Investor Relations’.
and hosted on its website at www.dcbbank.com.
The quarterly and half yearly declaration of financial Details of Debenture Trustee:
performance including summary of the significant IDBI Trusteeship Services Ltd.
events is being sent to every shareholder through e-mail Universal Insurance Building,
apart from publishing the Bank’s quarterly results in a Ground Floor, Sir P.M. Road,
national English daily newspaper (Business Standard), Fort, Mumbai - 400001
and a local Marathi daily newspaper (Pudhari) having Website: www.idbitrustee.com
a wide circulation in Mumbai. Also, the same have Tel: +91 22 4080 7000
been hosted on the website of the Bank. The Bank also Fax: +91 22 6631 1776
makes presentations to Institutional Investors and/or E-mail: itsl@idbitrustee.com
to the analysts and/or hosts the same on the website
of the Bank and/or makes press releases from time to Name of the Compliance Officer of the Bank
time. However, in view of various relaxations granted by Ms. Rubi Chaturvedi - Company Secretary
SEBI on account of continuing problem of Covid-19, the Telephone: 020 6684 8401 • Fax: 022 66589970
information may be published only on websites of the E-mail id: rubi.chaturvedi@dcbbank.com
Bank and Stock Exchanges.
ADDRESS OF THE REGISTERED & CORPORATE
INVESTOR HELPDESK OFFICE OF THE BANK:

Share transfers, dividend payments, if any, and all other DCB Bank Limited
investor related activities are attended to and processed 601 & 602, Peninsula Business Park, Tower A, 6th floor,
at the office of the Bank’s Registrars and Transfer Senapati Bapat Marg, Lower Parel,
Agents (RTAs). Mumbai - 400 013.
Telephone: 022-66187000Fax: 022-66589970
For lodgment of any documents or for any Date of Incorporation: 31-05-1995
grievances/complaints, kindly contact the RTAs at the Registration No.11-89008 of 1995
following address: CIN: L99999MH1995PLC089008
Website: www.dcbbank.com
E-mail ID: investorgrievance@dcbbank.com

Annual Report 2022-23 | 83

DCB Bank Limited

DCB BANK SHARE PRICE & VOLUME OF SHARES

TRADED

The monthly high and low quotation and volume of The monthly high and low quotation and volume of
shares traded on the BSE Ltd. (BSE). shares traded on the National Stock Exchange (NSE).

Month High Low Sensex Month High Low Nifty

(High) (High)
Apr-22 92.25 69.15 60,845.10 Apr-22 92.25 69.70 18,114.65
May-22 86.60 76.30 57,184.21 May-22 86.70 76.10 17,132.85
Jun-22 89.35 70.30 56,432.65 Jun-22 89.25 70.00 16,793.85
Jul-22 90.85 73.45 57,619.27 Jul-22 90.90 73.45 17,172.80
Aug-22 99.00 81.25 60,411.20 Aug-22 98.70 81.15 17,992.20
Sep-22 114.05 92.25 60,454.37 Sep-22 119.00 92.20 18,096.15
Oct-22 109.30 95.55 60,786.70 Oct-22 109.35 95.60 18,022.80
Nov-22 132.00 105.75 63,303.01 Nov-22 132.00 105.65 18,816.05
Dec-22 141.20 111.30 63,583.07 Dec-22 141.20 111.25 18,887.60
Jan-23 133.60 110.45 61,343.96 Jan-23 133.60 110.35 18,251.95
Feb-23 118.35 104.65 61,682.25 Feb-23 118.25 104.50 18,134.75
Mar-23 114.70 96.70 60,498.48 Mar-23 114.75 96.55 17,799.95

Declaration signed by the chief executive officer stating that the members of board of directors and
senior management personnel have affirmed compliance with the code of conduct of board of directors
and senior management.

To
The Members,
DCB Bank Limited
Mumbai

I, Murali M. Natrajan, Managing Director & CEO of the Bank confirm that for the Financial Year 2022-2023, all the
Directors and Senior Management Personnel of the Bank have affirmed their adherence to the provisions of the Code
of Conduct as approved and adopted by the Board of Directors.

SD/-
Date: May 5, 2023 Murali M. Natrajan
Managing Director & CEO

84 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

CORPORATE GOVERNANCE CERTIFICATE

[Pursuant to Regulation 34(3) and Schedule V Para E of Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015]

1. Background
We have been approached by DCB Bank Limited (“the Bank”) to examine the compliance with the conditions of
Corporate Governance by the Bank, as stipulated in the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (the “SEBI Listing Regulations”), as amended from time to time, for the financial year ended on
31st March 2023.
2. Management’s Responsibility
The Compliance of conditions of Corporate Governance stipulated in the Listing Regulations is the responsibility
of the management of the Bank. The management shall devise adequate systems, internal controls and processes
to monitor and ensure compliance of the same.
3. Our Responsibility
Our responsibility is limited to conduct an examination of the systems, internal controls and processes adopted
by the Bank and implementation thereof to monitor and ensure with the conditions of Corporate Governance and
report thereon.
4. Methodology
4.1. In order to conduct our examination, we were provided with the relevant documents and information
including explanations, wherever required.
4.2. Our examination was conducted in a manner which provided us with a reasonable basis for evaluating the
systems, internal controls and processes adopted by the Bank to monitor and ensure compliance with the
conditions of Corporate Governance and to certify thereon.
5. Opinion
Based on our examination as aforesaid, the information, explanations and representations provided by the
management and subject to the observation reported as under, we certify that, the Bank has complied with
the conditions of the Corporate Governance stipulated in the Listing Regulations, for the Financial Year ended
31st March 2023.
*Ms Rupa Devi Singh, Independent Director retired on 21st January 2023 and the Bank did not have a woman
Independent Director as on 31st March 2023. The Bank has appointed Ms. Lakshmi Chandrasekaran as a Woman
Independent Director on 14th April 2023.
6. Disclaimer
6.1. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.
6.2. This report is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with
which the management has conducted the affairs of the Bank.
For S. N. ANANTHASUBRAMANIAN & Co.
Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019

S. N. Ananthasubramanian
Partner
05th May, 2023 | Thane FCS: 4206 | COP No.: 1774
UDIN: F004206D000283485

Annual Report 2022-23 | 85

DCB Bank Limited

Form No. MR- 3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]

To,
The Members,
DCB Bank Limited
CIN: L99999MH1995PLC089008
601& 602, Peninsula Business Park, Tower A,
Senapati Bapat Marg, Lower Parel,
Mumbai - 400013.

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by DCB Bank Limited (hereinafter called “the Bank”). Secretarial Audit was conducted
in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.

Based on our verification of the Bank’s books, papers, minute books, forms and returns filed and other records
maintained by the Bank and also the information provided by the Bank, its officers, agents and authorized
representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Bank has, during
the audit period covering the financial year ended on 31st March 2023, complied with the statutory provisions
listed hereunder and also that the Bank has proper Board-processes and compliance-mechanism in place to the
extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Bank for the financial year ended 31st March, 2023 according to the provisions of:

i. The Companies Act, 2013 (the Act) and the rules made thereunder;

ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment Overseas Direct Investment and External Commercial Borrowings – Not Applicable to the
extent of Overseas Direct Investment and External Commercial Borrowings as there were no reportable events
during the year under review;

v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

b. The Securities and Exchange Board of India (Prohibition of Insider Trading Regulations), 2015;

c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018 – Not Applicable as there was no reportable event;

d. The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;

e. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client - Not Applicable as the Bank is not registered as
Registrar to Issue and Share Transfer Agent during the financial year under review;

86 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

f. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 - Not applicable
as the Bank has not delisted / proposes to delist its equity shares from any stock exchange during the
financial year under review;

g. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 - Not applicable as
the Bank has not bought back / proposes to buy-back any of its securities during the financial year
under review;

h. The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021;

i. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations,
2015 (SEBI Listing Regulations).

vi. The Bank has identified and confirmed the following laws as being specifically applicable to the Company:

a. The Banking Regulation Act, 1949 and Rules, Notifications, Circulars and Guidance issued by the Reserve
Bank of India from time to time;

b. The Reserve Bank of India (RBI) Act, 1934;

c. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002;

d. The Payment and Settlement Systems Act, 2007;

e. The Negotiable Instruments Act, 1881

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards with regard to Meeting of Board of Directors (SS-1) and General Meetings (SS-2) issued by
The Institute of Company Secretaries of India;

(ii) Listing agreements entered into by the Bank with National Stock Exchange of India Limited and BSE Limited;

During the period under review the Bank has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above except:

*Ms Rupa Devi Singh, Independent Director retired on 21st January 2023 and the Bank did not have a woman
Independent Director as on 31st March 2023. The Bank has appointed Ms. Lakshmi Chandrasekaran as a Woman
Independent Director on 14th April 2023.

We further report that: -

(i) The Board of Directors of the Bank is duly constituted with proper balance of Executive Directors - Non-Executive
Directors including Independent Directors and a Woman Director*. Changes in the Composition of the Board
which took place during the year were carried out in compliance with the provisions of the Act.

(ii) Adequate notice is given to all Directors of the schedule of the Board/Committee Meetings. Agenda and detailed
notes on agenda were sent atleast seven days in advance before the meeting except where consent of Directors
was received for circulation of the Notice, Agenda and notes on Agenda less than seven days before the meeting.

(iii) There exists a system for seeking and obtaining further information and clarifications on the agenda items before
the meeting for meaningful participation at the meeting.

(iv) All decisions of the Board and Committee meetings were carried with requisite majority.

We further report that based on (a) the review of the compliance mechanism established by the Bank (b) Compliance
Certificate(s) issued by various officials authorized for the purpose, which were taken on record by Board of Directors
at their Meeting(s), and (c) communication(s) received from Reserve Bank of India, we are of the opinion that the Bank

Annual Report 2022-23 | 87

DCB Bank Limited

should continue its efforts to strengthen its systems and processes in the Bank to be commensurate with its size and
operations so as to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.We further
report that during the audit period:

We further report that during the audit period:

 The Bank has redeemed Debt Securities by exercising call option aggregating to Rs 450 crore (Rupees Four
Hundred and Fifty crore) only during the financial year.

 The Members have at their 27th Annual General Meeting held on 22nd June, 2022 had approved the following by
way of Special Resolution(s):

(i) For borrowing or raising of funds by issue of debt securities in domestic / foreign markets on Private
Placement basis, pursuant to guidelines or circulars issued by RBI , of an amount not exceeding ` 500 Crore
(Rupees Five Hundred Crore only) in aggregate by way of additional Tier I and /or Tier II capital, within the
overall borrowing limits of the Bank, under sec 180(1)(c) of the Companies Act, 2013, for a period of one year,
in one or more tranches and /or series.

(ii) Issue of equity shares to Qualified Institutional Buyers through Qualified Institutional Placement, for an
amount not exceeding ` 500 Crore (Rupees Five Hundred Crore only), in aggregate in one or more tranches.

 The Bank has, issued and allotted, 9.35% Unsecured, Subordinated, Non-Convertible, Fully Paid-Up, Taxable,
Redeemable, Basel III Compliant Tier II Bonds of face value of `1,00,00,000/- (Rupees One Crore Only) each, on
a private placement basis, aggregating to ` 300 crores on 28th March 2023.

 The Bank has redeemed Debt Securities by exercising call option aggregating ` 236.60 Crores on
27th December, 2021.

This Report is to be read with our letter of even date which is annexed as Annexure – A and forms an integral part of
this report.

For S. N. ANANTHASUBRAMANIAN & Co.

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019

S. N. Ananthasubramanian
Partner
05th May, 2023 | Thane FCS: 4206 | COP No.: 1774
UDIN: F004206E000257932

88 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Annexure-A

To,
The Members,
DCB Bank Limited
CIN: L99999MH1995PLC089008
601 & 602, Peninsula Business Park, Tower A,
Senapati Bapat Marg, Lower Parel,
Mumbai – 400013

Our Secretarial Audit Report for the Financial Year ended 31st March, 2023, of even date, is to be read along with this
letter.

Management’s Responsibility.

1. It is the responsibility of the management of the Bank to maintain secretarial records, devise proper systems to
ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are
adequate and operate effectively

Auditor’s Responsibility

2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Bank with respect to secretarial compliances.

3. We have conducted the Audit as per the applicable Auditing Standards issued by the Institute of Company
Secretaries of India.

4. We believe that audit evidence and information obtained from the Bank’s management is adequate and appropriate
for us to provide a basis for our opinion.

5. Wherever required, we have obtained reasonable assurance whether the statements prepared, documents or
Records, in relation to Secretarial Audit, maintained by the Bank, are free from misstatement.

6. Wherever required, we have obtained the Management’s representation about the compliance of laws, rules and
regulations and happening of events, etc.

Disclaimer

7. The Secretarial Audit Report is neither an assurance as to the future viability of the Bank nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Bank.

8. We have not verified the correctness and appropriateness of financial records and books of accounts of the Bank.

For S. N. ANANTHASUBRAMANIAN & CO.

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review No.: 606/2019

05th May, 2023 | Thane S. N. Ananthasubramanian

Partner
FCS: 4206 I COP No: 1774
UDIN: F004206E000257932

Annual Report 2022-23 | 89

DCB Bank Limited

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of

Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,
The Members
DCB Bank Limited
601 & 602, Peninsula Business Park,
6th floor, Tower A, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013

We have examined the following documents:

i) Declaration of non-disqualification as required under Section 164of Companies Act, 2013 (‘the Act’);

ii) Disclosure of concern or interests as required under Section 184 of the Act;
(hereinafter referred to as ‘relevant documents’)

as submitted by the Directors of DCB Bank Limited (‘the Company’) bearing CIN: L99999MH1995PLC089008 and
having its registered office at 601 & 602, Peninsula Business Park, 6th floor, Tower A, Senapati Bapat Marg, Lower
Parel, Mumbai – 400013, to the Board of Directors of the Company (‘the Board’) for the Financial Year 2022 – 2023
and Financial Year 2023 – 2024 and relevant registers, records, forms and returns maintained by the Company and
as made available to us for the purpose of issuing this Certificate in accordance with Regulation 34(3) read with
Schedule V Para C Clause 10(i) of SEBI (LODR) Regulations, 2015. We have considered non-disqualification to include
non-debarment by Regulatory/ Statutory Authorities.

It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance
with the provisions of the Act.

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification.

Based on our examination as aforesaid and such other verifications carried out by us as deemed necessary and
adequate (including Directors Identification Number (DIN) status at the portal www.mca.gov.in), in our opinion and to
the best of our information and knowledge and according to the explanations provided by the Company, its officers
and authorized representatives, we hereby certify that none of the Directors on the Board of the Company, as listed
hereunder for the Financial Year ending 31st March, 2023 have been debarred or disqualified from being appointed or
continuing as Directors of Companies by Securities and Exchange Board of India/ Ministry of Corporate Affairs or any
such statutory authority.

90 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Sr. Name of Director Director Date of Date of

No. Identification Appointment Cessation
Number (DIN)
1. Mr. Murali Natrajan 00061194 29/04/2009 –
2. Mr. Shaffiq Dharamshi 06925633 13/01/2015 12/01/2023
3. Ms. Rupa Devi Singh 02191943 22/01/2015 21/01/2023
4. Mr. Iqbal Khan 07870063 15/07/2017 –
5. Mr. Ashok Kumar Barat 00492930 22/03/2018 21/03/2023
6. Mr. Somasundaram Palamadai Ramaswamy 00356363 25/01/2020 –
7. Mr. Amyn Jassani 02945319 25/01/2020
– Mr. Somasundaram Palamadai Ramaswamy 00356363 25/01/2020 –
8. Mr. Shabbir Merchant 07438419 25/01/2020 –
9. Mr. Rafiq Somani 01351871 09/03/2020 –
10. Mr. Tarun Balram 02445298 24/01/2022 –
11. Mr. Thiyagarajan Kumar 00735914 10/02/2022 –
12. Mr. Farokh Nariman Subedar 00028428 15/10/2022 -
13. Ms. Lakshmi Chandrasekaran 00240466 14/04/2023

This Certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

This Certificate has been issued at the request of the Company to make disclosure in its Corporate Governance Report
of the Financial Year ended 31st March, 2023.

For S. N. ANANTHASUBRAMANIAN & Co.

Company Secretaries
ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019

S. N. Ananthasubramanian
Partner
05th May, 2023 | Thane FCS: 4206 | COP No.: 1774
UDIN: : F004206E000258053

Annual Report 2022-23 | 91

DCB Bank Limited

INDEPENDENT AUDITOR’S REPORT

To the Members of DCB Bank Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of DCB Bank Limited (“the Bank”), which comprise the
Balance sheet as at March 31, 2023, the Profit and Loss Account, the Cash Flow Statement, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013, as
amended (“the Act”) in the manner so required for banking companies and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the Bank as at March 31, 2023, its profit,
its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (“SAs”), as specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Financial Statements’ section of our report. We are independent of the Bank in
accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code
of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided
in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial statements.
The results of our audit procedures, including the procedures performed to address the matters below, provide the
basis for our audit opinion on the accompanying financial statements.

92 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Key audit matters How our audit addressed the key audit matter
Identification of Non-Performing Advances (“NPA”) and provisioning of advances including compliance with
revised Income Recognition and Asset Classification norms (“IRAC”) issued by Reserve Bank of India (“RBI”) and
clarifications issued thereon
Advances constitute a significant portion of the Bank’s The audit procedures performed, among others, included:
assets and the quality of these advances is measured in
• Read the Bank’s policies for NPA identification and
terms of ratio of NPAs to the gross advances of the Bank.
provisioning and assessing compliance with the IRAC
The Bank’s net advances constitute 66% of the total
norms.
assets and the gross NPA ratio of the Bank is 3.19% as at
March 31, 2023. • Understood the design and operating effectiveness of
key controls (including application controls) around
RBI has issued IRAC. These guidelines prescribe the identification of non-performing accounts based on
prudential norms for identification and classification the extant guidelines on IRAC.
of NPAs and the minimum provision required for such • Performed substantive audit procedures covering the
assets. identification and provisioning of NPAs by the Bank.
These procedures included:
The Bank is also required to apply its judgement to
- Tested the exception reports generated from the
determine the identification and provision required
application systems where the advances have been
against NPAs by applying quantitative as well as
recorded.
qualitative factors. The provisioning for identified NPAs
- Considered accounts reported by the Bank and
is estimated based on ageing and classification of NPAs,
other banks as Special Mention Accounts (“SMA”)
recovery estimates, value of security and other qualitative
in RBI’s central repository of information on large
factors and is subject to the minimum provisioning norms
credits (CRILC) to identify stress and the early
specified by RBI.
warning reports generated by the Bank to identify
Additionally, the Bank makes provisions on exposures stressed accounts
that are not classified as NPAs and identified advances or - Tested account statements and other related
group advances that can potentially slip into NPA. These information of a sample of borrowers selected based
are classified as contingency provisions. on quantitative and qualitative risk factors.
- Performed analytical procedures to identify possible
Since the identification of NPAs and provisioning cases of evergreening of loans and tested these on
for advances require significant level of estimation/ sample basis.
judgement and given its significance to the overall - Performed inquiries with the credit and risk
audit due to stakeholder and regulatory focus, we have departments to ascertain if there were indicators
ascertained identification and provisioning for NPAs and of stress or an occurrence of an event of default in
advances as a key audit matter. a particular loan account or any product category
which need to be considered as NPA.
- Tested on sample basis, the calculation performed
by the management for compliance with RBI
regulations and internally laid down policies for
provisioning.
- Evaluated the governance process and review
controls over NPA provision calculations and
provision on accounts not classified as NPA.
- Tested the arithmetical accuracy of computation of
provision for advances..
• Assessed disclosure requirements for classification and
provisioning of NPAs in accordance with RBI circulars

Annual Report 2022-23 | 93

DCB Bank Limited

Key audit matters How our audit addressed the key audit matter
Information Technology (“IT”) Systems and Controls
The reliability and security of IT systems plays a key role Our audit procedures included the following:
in the business operations preparation of the Bank’s • Tested the design and operating effectiveness of the
Financial Statements. Bank’s IT access controls over the information systems
that are critical to financial reporting.
The Bank’s operational and financial processes are
dependent on IT systems due to large volume of • Tested IT General Controls (logical access, change
transactions that are processed daily and accordingly management and aspects of IT operational controls).
the IT infrastructure is critical for smooth functioning of This included testing that requests for access to
the Bank’s business operations as well as for timely and systems were appropriately reviewed and authorized.
accurate financial reporting and accounting. The Bank • Tested the Bank’s periodic review of access rights.
has constituted an IT Strategy Committee at the Board We inspected requests of changes to systems for
level to oversee implementation of IT strategy. appropriate approval and authorization. We considered
the control environment relating to various interfaces,
Due to the pervasive nature and complexity of the IT configuration and other application layer controls
environment we have ascertained IT systems and controls identified as key to the audit.
as a key audit matter.
• Tested compensating controls and performed alternate
procedures, where necessary.
• Understood where relevant, changes made to the IT
landscape during the audit period and tested those
changes.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Bank’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual report and the pillar 3 disclosure (but does not include the financial statements and our auditor’s
reports thereon).

Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether such other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.

When we read the annual report and pillar 3 disclosure, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to Those Charged with Governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial
Statements

The Bank’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the financial position, financial performance,
cash flows of the Bank in accordance with provisions of Section 29 of the Banking Regulation Act, 1949, the accounting
principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read
with Rule 7 of the Companies (Accounts) Rules, 2014 in so far as they apply to the Bank and guidelines and directions
issued by Reserve Bank of India (“RBI”) from time to time.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and

94 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to
do so.

Those charged with governance are also responsible for overseeing the Bank’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Bank has adequate internal financial controls with reference to financial statements in place
and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease
to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

Annual Report 2022-23 | 95

DCB Bank Limited

From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements for the financial year ended March 31, 2023 and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of
Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014.

2. As required by sub section (3) of section 30 of the Banking Regulation Act, 1949 and communication received by
the Bank from RBI, we report that:

a. We have obtained all the information and explanations which, to the best of our knowledge and belief, were
necessary for the purpose of our audit and have found them to be satisfactory;

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and

c. The financial accounting systems of the Bank are centralized and therefore, accounting returns for the purpose
of preparing financial statements are not required to be submitted by its branches. We have visited 30 branches
for the purpose of our walkthrough of processes and test of controls at branches by inspection of documents
obtained from branches

3. As required by Section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from
our examination of those books;

c. The Balance Sheet, the Profit and Loss Account, the Cash Flow Statement dealt with by this Report are in
agreement with the books of account;

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent they are not
inconsistent with the accounting policies prescribed by RBI;

e. In our opinion, there are no material financial transactions or matters that have an adverse effect on the
functioning of the Bank;

f. On the basis of the written representations received from the directors as on March 31, 2023 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a
director in terms of Section 164 (2) of the Act;

g. With respect to the adequacy of the internal financial controls with reference to these financial statements and
the operating effectiveness of such controls, refer to our separate Report in “Annexure 1” to this report;

h. In our opinion, the entity being a banking company, the remuneration to the managing director during the year
ended March 31, 2023 has been paid by the Bank in accordance with the provisions of Section 35B (1) of the
Banking Regulation Act, 1949;

96 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

i. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and
according to the explanations given to us:

i. The Bank has disclosed the impact of pending litigations on its financial position in its financial statements
– Refer note 15 to the financial statements;

ii. The Bank did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Bank

iv. a) The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the note 13.6 to the financial statements, no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Bank to or in
any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Bank (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the note 13.6 to the financial statements, no funds have been received by the Bank from any person(s)
or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded
in writing or otherwise, that the Bank shall, whether, directly or indirectly, lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures that were considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause
(a) and (b) contain any material misstatement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous
year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

vi. As stated in note 13.5 to the financial statements, the Board of Directors of the Company have proposed
final dividend for the year which is subject to the approval of the members at the ensuing Annual General
Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend.

vii. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f.
April 1, 2023, reporting under this clause is not applicable

For S.R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration no.: 101049W/E300004 Firm Registration no.: 004207S

per Sarvesh Warty S Ramkumar

Partner Partner
Membership No.: 121411 Membership No.: 238820
UDIN: 23121411BGWEGA1386 UDIN: 23238820BGYDIJ3861

Place: Mumbai Place: Mumbai

Date: May 05, 2023 Date: May 05, 2023

Annual Report 2022-23 | 97

DCB Bank Limited

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON

THE FINANCIAL STATEMENTS OF DCB BANK LIMITED

Report on the Internal Financial Controls under Clause Our audit involves performing procedures to obtain audit
(i) of Sub-section 3 of Section 143 of the Companies evidence about the adequacy of the internal financial
Act, 2013 (“the Act”) controls with reference to these financial statements
and their operating effectiveness. Our audit of internal
We have audited the internal financial controls with financial controls with reference to financial statements
reference to financial statements of DCB Bank Limited included obtaining an understanding of internal financial
(“the Bank”) as of March 31, 2023 in conjunction with our controls with reference to these financial statements,
audit of the financial statements of the Bank for the year assessing the risk that a material weakness exists,
ended on that date. and testing and evaluating the design and operating
effectiveness of internal control based on the assessed
Management’s Responsibility for Internal risk. The procedures selected depend on the auditor’s
Financial Controls judgement, including the assessment of the risks of
material misstatement of the financial statements,
The Bank’s Management is responsible for establishing whether due to fraud or error.
and maintaining internal financial controls based on
the internal control over financial reporting criteria We believe that the audit evidence we have obtained is
established by the Bank considering the essential sufficient and appropriate to provide a basis for our audit
components of internal control stated in the Guidance opinion on the Bank’s internal financial controls with
Note on Audit of Internal Financial Controls Over reference to these financial statements.
Financial Reporting issued by the Institute of Chartered
Accountants of India (“ICAI”). These responsibilities
Meaning of Internal Financial Controls With
include the design, implementation and maintenance of
Reference to these Financial Statements
adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct A company’s internal financial controls with reference
of its business, including adherence to the Bank’s to financial statements is a process designed to provide
policies, the safeguarding of its assets, the prevention reasonable assurance regarding the reliability of financial
and detection of frauds and errors, the accuracy and reporting and the preparation of financial statements
completeness of the accounting records, and the timely for external purposes in accordance with generally
preparation of reliable financial information, as required accepted accounting principles. A company’s internal
under the Companies Act, 2013. financial controls with reference to financial statements
includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable
Auditor’s Responsibility
detail, accurately and fairly reflect the transactions
Our responsibility is to express an opinion on the
and dispositions of the assets of the company; (2)
Bank’s internal financial controls with reference to these
provide reasonable assurance that transactions are
financial statements based on our audit. We conducted
recorded as necessary to permit preparation of
our audit in accordance with the Guidance Note on Audit
financial statements in accordance with generally
of Internal Financial Controls Over Financial Reporting
accepted accounting principles, and that receipts and
(the “Guidance Note”) and the Standards on Auditing,
expenditures of the company are being made only in
as specified under section 143(10) of the Act, to the
accordance with authorisations of management and
extent applicable to an audit of internal financial controls,
directors of the company; and (3) provide reasonable
both issued by ICAI. Those Standards and the Guidance
assurance regarding prevention or timely detection
Note require that we comply with ethical requirements
of unauthorised acquisition, use, or disposition of the
and plan and perform the audit to obtain reasonable
company’s assets that could have a material effect on
assurance about whether adequate internal financial
the financial statements.
controls with reference to these financial statements was
established and maintained and if such controls operated
effectively in all material respects.

98 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Inherent Limitations of Internal Financial Controls degree of compliance with the policies or procedures
With Reference to Financial Statements may deteriorate.

Because of the inherent limitations of internal financial

controls with reference to financial statements, including Opinion
the possibility of collusion or improper management
override of controls, material misstatements due to error In our opinion, the Bank has, in all material respects,
or fraud may occur and not be detected. Also, projections adequate internal financial controls with reference to
of any evaluation of the internal financial controls with financial statements and such internal financial controls
reference to financial statements to future periods are with reference to financial statements were operating
subject to the risk that the internal financial control effectively as at March 31, 2023, based on the internal
with reference to financial statements may become control over financial reporting criteria established by the
inadequate because of changes in conditions, or that the Bank considering the essential components of internal
control stated in the Guidance Note issued by the ICAI.

For S.R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration no.: 101049W/E300004 Firm Registration no.: 004207S

per Sarvesh Warty S Ramkumar

Partner Partner
Membership No.: 121411 Membership No.: 238820
UDIN: 23121411BGWEGA1386 UDIN: 23238820BGYDIJ3861

Place: Mumbai Place: Mumbai

Date: May 05, 2023 Date: May 05, 2023

Annual Report 2022-23 | 99

DCB Bank Limited

BALANCE SHEET AS AT MARCH 31, 2023

Schedule As on 31.03.2023 As on 31.03.2022

(` in 000's) (` in 000's)
CAPITAL & LIABILITIES
Capital 1 31,15,017 31,09,765
Employee Stock Options
(Grants outstanding net of deferred cost) 30,790 13,151
Reserves and Surplus 2 4,25,15,328 3,73,65,327
Capital and Reserves 4,56,61,135 4,04,88,243

Deposits 3 41,23,89,076 34,69,16,866

Borrowings 4 4,11,81,200 4,08,18,396
Other Liabilities and Provisions 5 2,44,27,281 1,97,02,109

TOTAL CAPITAL & LIABILITIES 52,36,58,692 44,79,25,614

ASSETS
Cash and Balances with Reserve Bank of India 6 2,03,06,041 3,10,75,007
Balances with Banks and Money at Call and Short Notice 7 33,78,201 98,32,597
Investments 8 12,58,24,569 9,05,06,537
Advances 9 34,38,07,416 29,09,57,812
Fixed Assets 10 82,62,680 66,11,838
Other Assets 11 2,20,79,785 1,89,41,823

TOTAL ASSETS 52,36,58,692 44,79,25,614

Contingent Liabilities 12 5,09,76,509 5,06,20,979
Bills for Collection 53,41,555 55,46,339
Significant Accounting Policies 17
Notes to Accounts 18

The Schedules referred to above form an integral part of the Balance Sheet.
The Balance Sheet has been prepared in conformity with Form ‘A’ of the Third Schedule to the Banking Regulation Act, 1949.

For and on behalf of the Board of Directors

Murali M. Natrajan Farokh Subedar Thiyagarajan Kumar Satish Gundewar Rubi Chaturvedi
MD & CEO Chairman Director Chief Financial Officer Company Secretary
DIN-00061194 DIN-00028428 DIN-00735914
As per our report of even date.
For S. R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration Number: 101049W/E300004 Firm Registration Number: 004207S

Sarvesh Warty S Ramkumar

Partner Partner
Membership No. : 121411 Membership No. : 238820

Place : Mumbai Place : Mumbai

Date : May 05, 2023 Date : May 05, 2023

100 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2023

Schedule Year ended Year ended

31.03.2023 31.03.2022
(` in 000's) (` in 000's)
I. INCOME
Interest Earned 13 4,20,02,710 3,51,27,650
Other Income 14 40,93,904 45,20,392
TOTAL INCOME 4,60,96,614 3,96,48,042
II. EXPENDITURE
Interest Expended 15 2,48,32,658 2,15,52,576
Operating Expenses 16 1,33,96,619 1,01,25,643
Provisions and Contingencies 18 (12.1) 32,11,748 50,94,780
TOTAL EXPENDITURE 4,14,41,025 3,67,72,999
III. PROFIT / (LOSS)
Net Profit for the Year 46,55,589 28,75,043
Balance Brought Forward 1,10,72,702 93,85,296
TOTAL PROFIT/(LOSS) 1,57,28,291 1,22,60,339
IV. APPROPRIATIONS
Transfer to Statutory Reserve 11,63,897 7,18,761
Transfer to Special Reserve 2,24,199 3,06,500
Transfer to Capital Reserve 27,650 2,06,662
Transfer to / (from) Investment Reserve (7,831) 15,990
Transfer to Investment Fluctuation Reserve 2,25,655 -
Transfer from Revaluation Reserve (65,105) (60,276)
Dividend Paid 3,11,029 -
Balance carried over to Balance sheet 1,38,48,797 1,10,72,702
TOTAL 1,57,28,291 1,22,60,339
Earnings per share 17 (17)
(i) Basic (`) 18 (11.2) 14.96 9.26
(ii) Diluted (`) 18 (11.2) 14.79 9.19
Face Value per share (`) 10.00 10.00
Significant Accounting Policies 17
Notes to Accounts 18
The Schedules referred to above form an integral part of the Profit and Loss Account.
The Profit and Loss Account has been prepared in conformity with Form ‘B’ of the Third Schedule to the Banking
Regulation Act, 1949.
For and on behalf of the Board of Directors

Murali M. Natrajan Farokh Subedar Thiyagarajan Kumar Satish Gundewar Rubi Chaturvedi
MD & CEO Chairman Director Chief Financial Officer Company Secretary
DIN-00061194 DIN-00028428 DIN-00735914
As per our report of even date.
For S. R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration Number: 101049W/E300004 Firm Registration Number: 004207S

Sarvesh Warty S Ramkumar

Partner Partner
Membership No. : 121411 Membership No. : 238820

Place : Mumbai Place : Mumbai

Date : May 05, 2023 Date : May 05, 2023

Annual Report 2022-23 | 101

DCB Bank Limited

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023

Year ended Year ended

31.03.2023 31.03.2022
(` in 000's) (` in 000's)
Cash Flow from Operating Activities
Net Profit after tax for the year (Refer Profit and Loss Account) 46,55,589 28,75,043
Add: Provision for income tax (Refer Schedule 18 (12.1)) 16,19,990 10,20,453
Net Profit before tax for the year 62,75,579 38,95,496
Adjustments for:
Provisions for Advances 19,46,216 30,78,816
Provisions for Restructured Advances (50,987) 1,71,898
Provision for Investments 14,076 67,856
Provision for Standard Assets* (4,74,327) 8,64,521
Provision for Other Assets and Contingencies 1,21,107 12,380
Depreciation / Amortisation on Fixed Assets 7,70,110 6,37,140
Loss on Sale of Fixed Assets 7,699 2,282
Amortisation of Premium on Held-to-Maturity (HTM) Investments 7,53,802 6,27,745
Amortisation of Premium on Acquired Assets 8,590 3,504
ESOPs/CSARs Compensation 29,775 4,101
Cash Flow from Operating Activities before adjustments 94,01,640 93,65,739
Adjustments for:
Increase/(Decrease) in Deposits 6,54,72,210 4,98,78,220
Increase/(Decrease) in Other Liabilities & Provisions 50,71,182 22,62,844
(Increase)/Decrease in Investments (3,60,85,910) (70,65,209)
(Increase)/Decrease in Advances (5,47,53,423) (3,68,40,060)
(Increase)/Decrease in Other Assets (38,16,374) 2,64,696
Refund/(Payment) of direct taxes (Including Tax Deducted at Source) (9,46,505) (18,05,479)
Net Cash Flow from / (used in) Operating activities A (1,56,57,180) 1,60,60,751
Cash Flow from / (used in) Investing activities
Purchase of Fixed assets (16,65,084) (15,74,786)
Proceeds from sale of Fixed Assets 17,458 8,625
Net Cash Flow from / (used in) Investing activities B (16,47,626) (15,66,161)

102 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Year ended Year ended

31.03.2023 31.03.2022
(` in 000's) (` in 000's)
Cash Flow from / (used in) Financing Activities
Proceeds from Issue of Capital (including ESOPs) 29,669 23,712
Issue of Subordinated Debt 30,00,000 -
Repayment of Subordinated Debt (45,00,000) (23,66,000)
Proceeds from Borrowings 2,53,92,569 2,37,49,883
Repayment of Borrowings (2,35,29,765) (2,53,88,001)
Dividend Paid (3,11,029) -
Net Cash Flow from / (used in) Financing activities C 81,444 (39,80,406)
Net Increase/ (Decrease) in Cash and Cash Equivalents A+B+C (1,72,23,362) 1,05,14,184
Cash and cash equivalents at the beginning of the year 4,09,07,604 3,03,93,420
Cash and cash equivalents at the end of the year 2,36,84,242 4,09,07,604
Notes to the cash flow statement
Cash and cash equivalent includes the following:
Cash and balances with Reserve Bank of India (Refer Schedule 6) 2,03,06,041 3,10,75,007
Balances with Banks and Money at Call and Short notice (Refer Schedule 7) 33,78,201 98,32,597
Cash and Cash equivalent at the end of the year 2,36,84,242 4,09,07,604

*Includes provision for standard restructured accounts

For and on behalf of the Board of Directors

Murali M. Natrajan Farokh Subedar Thiyagarajan Kumar Satish Gundewar Rubi Chaturvedi
MD & CEO Chairman Director Chief Financial Officer Company Secretary
DIN-00061194 DIN-00028428 DIN-00735914
As per our report of even date.
For S. R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration Number: 101049W/E300004 Firm Registration Number: 004207S

Sarvesh Warty S Ramkumar

Partner Partner
Membership No. : 121411 Membership No. : 238820

Place : Mumbai Place : Mumbai

Date : May 05, 2023 Date : May 05, 2023

Annual Report 2022-23 | 103

DCB Bank Limited

SCHEDULE 1 - CAPITAL
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
Authorised Capital
500,000,000 (Previous year 500,000,000) 50,00,000 50,00,000
Equity Shares of ` 10/- each
Issued, Subscribed and Paid up Capital*
31,15,01,733 (as at March 31, 2022: 310,976,463) 31,15,017 31,09,765
Equity Shares of ` 10/- each
TOTAL 31,15,017 31,09,765

* (During the year, 525,270 (Previous year: 440,350) equity shares have been issued against exercise of options
purchased under the Employees’ Stock Option Plan).
Refer Note 18 (11.3) (Employees’ Stock Option Plan)

SCHEDULE 2 - RESERVES & SURPLUS

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Statutory Reserve
Opening balance 70,41,382 63,22,621
Additions during the year 11,63,897 7,18,761
TOTAL(I) 82,05,279 70,41,382
II. Special Reserve
Opening balance 15,15,989 12,09,489
Additions during the year 3,25,000 3,06,500
Deductions during the year (1,00,801) -
TOTAL(II) 17,40,188 15,15,989
III. Capital Reserve
a) Revaluation Reserve
Opening balance 22,53,342 23,13,618
Additions during the year 7,81,024 -
Deductions during the year (transferred to
Balance in Profit & Loss Account)* (65,105) (60,276)
TOTAL (a) 29,69,261 22,53,342
b) Other Capital Reserve
Opening balance 14,03,411 11,96,749
Additions during the year 27,650 2,06,662
Deductions during the year - -
TOTAL (b) 14,31,061 14,03,411
TOTAL (a + b ) (III) 44,00,322 36,56,753

104 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
IV. Securities Premium
Opening balance 1,36,76,061 1,36,56,753
Additions during the year 24,417 19,308
Deductions during the year - -
TOTAL (IV) 1,37,00,478 1,36,76,061
V. Investment Reserve
Opening balance 15,990 -
Additions during the year - 15,990
Deductions during the year (7,831) -
TOTAL (V) 8,159 15,990
VI. Investment Fluctuation Reserve
Opening balance 3,86,450 3,86,450
Additions during the year 2,25,655 -
Deductions during the year - -
TOTAL (VI) 6,12,105 3,86,450
VII. Balance in Profit and Loss Account 1,38,48,797 1,10,72,702
TOTAL (I to VII) 4,25,15,328 3,73,65,327
* Refer Note 18 (11.8) (Revaluation of Fixed Assets)

SCHEDULE 3 - DEPOSITS
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
A I. Demand Deposits
(i) From Banks 1,50,849 1,41,245
(ii) From Others 2,09,90,514 2,11,62,691
TOTAL(I) 2,11,41,363 2,13,03,936
II. Savings Bank Deposits 8,78,14,697 7,15,06,895
TOTAL(II) 8,78,14,697 7,15,06,895
III. Term Deposits
(i) From Banks 4,08,40,612 3,39,73,087
(ii) From Others 26,25,92,404 22,01,32,948
TOTAL (III) 30,34,33,016 25,41,06,035
TOTAL (I,II and III) 41,23,89,076 34,69,16,866
B I. Deposits of branches in India 41,23,89,076 34,69,16,866
II. Deposits of branches outside India - -
TOTAL 41,23,89,076 34,69,16,866

Annual Report 2022-23 | 105

DCB Bank Limited

SCHEDULE 4 - BORROWINGS
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Borrowings in India
(i) Reserve Bank of India 10,00,000 10,00,000
(ii) Other Banks 2,50,000 5,50,000
(iii) Other Institutions and Agencies 3,69,31,200 3,47,68,396
(iv) Sub-Ordinated Debts 30,00,000 45,00,000
TOTAL (I) 4,11,81,200 4,08,18,396
II. Borrowings outside India - -
TOTAL (I & II) 4,11,81,200 4,08,18,396
Secured Borrowings included in I & II above 10,00,000 10,00,000

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Bills Payable 1,08,75,695 68,99,418
II. Inter Office Adjustments (Net) - -
III. Interest Accrued (Net of TDS recoverable) 46,16,047 38,21,848
IV. Others
(i) Provision for Standard Assets * 35,97,411 40,73,586
(ii) Other Liabilities (including provisions)** 53,38,128 49,07,257
TOTAL 2,44,27,281 1,97,02,109

* includes provision for unhedged foreign currency exposure and provision on specific standard assets. Refer
Schedule 18 (5.16) (Provisions on Standard Assets)
** includes provision for employee benefits. Refer Schedule 18 (11.1) (Employee Benefits)

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Cash in hand 18,46,304 19,17,985
(including foreign currency notes)
II. Balances with Reserve Bank of India
(i) In Current Accounts 1,69,59,737 1,38,57,022
(ii) In Other Accounts 15,00,000 1,53,00,000
TOTAL (II) 1,84,59,737 2,91,57,022
TOTAL (I & II) 2,03,06,041 3,10,75,007

106 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. In India
i. Balance with Banks
(a) In Current Accounts* 52,235 73,163
(b) In Other Deposit Accounts 2,080 2,004
* includes funds in transit amounting to ` 0.24 crore
(Previous Year : ` 2.30 crore)
TOTAL 54,315 75,167
ii. Money at Call and Short Notice
(a) With Banks - 10,00,000
(b) With Other Institutions - 14,63,523
TOTAL - 24,63,523
TOTAL (I) 54,315 25,38,690
II. Outside India
(i) In Current Accounts 5,72,013 4,49,086
(ii) In Other Deposit Accounts 27,51,873 68,44,821
(iii) Money at Call and Short Notice - -
TOTAL (II) 33,23,886 72,93,907
TOTAL (I & II) 33,78,201 98,32,597

SCHEDULE 8 - INVESTMENTS
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Investments in India
Net Investments in :-
(i) Government Securities 9,92,79,795 7,57,64,227
(ii) Other Approved Securities - -
(iii) Shares 2,25,994 2,25,994
(iv) Debentures and Bonds 12,36,733 12,46,767
(v) Subsidiaries and/or Joint Ventures - -
(vi) Other Investments :
(a) Ceritificate of Deposits/Commercial Paper - 4,96,200
(b) Units of Mutual Funds 53,762 31,000
(c) Pass Through Certificates 2,48,02,744 1,24,05,252
(d) Security Receipts* 2,25,541 3,37,097
TOTAL (I) 12,58,24,569 9,05,06,537
II. Investments in India
(i) Gross Value 12,59,96,664 9,06,64,556
(ii) Provision for Depreciation (1,72,095) (1,58,019)
TOTAL (II) 12,58,24,569 9,05,06,537
III. Investments outside India
(i) Government Securities - -
(ii) Subsidiaries and/or Joint Ventures - -
(iii) Other Investments - -
TOTAL (III) - -
* Refer Schedule 18 (5.10 and 5.11) (Details of financial assets (including written off accounts) sold to Securitisation/
Reconstruction Company for Asset Reconstruction and Details of investment in security receipts (SRs))

Annual Report 2022-23 | 107

DCB Bank Limited

SCHEDULE 9 - ADVANCES
As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. (i) Bills Purchased and Discounted 65,57,084 47,19,719
(ii) Cash credits, Overdrafts and Loans
repayable on demand 5,11,40,253 5,99,03,885
(iii) Term Loans 28,61,10,079 22,63,34,208
TOTAL (I) 34,38,07,416 29,09,57,812
II. (i) Secured by tangible assets* 32,53,33,046 27,79,62,720
(ii) Covered by Bank / Government Guarantees - -
(iii) Unsecured 1,84,74,370 1,29,95,092
*includes Advances against Book Debts
TOTAL (II) 34,38,07,416 29,09,57,812
III (a) Advances in India
(i) Priority Sectors 18,29,11,050 14,16,74,023
(ii) Public Sector - -
(iii) Banks - 1,74,868
(iv) Others 16,08,96,366 14,91,08,921
TOTAL 34,38,07,416 29,09,57,812
III (b) Advances outside India - -
TOTAL (III) 34,38,07,416 29,09,57,812
Advances are net of provisions

SCHEDULE 10 - FIXED ASSETS

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Premises (Gross Block including Revaluation)
(i) As at 31 March of the preceding year 56,56,538 52,25,608
(ii) Additions during the year 14,88,791 4,35,640
(iii) Deductions during the year (5,725) (4,710)
Total 71,39,604 56,56,538
Depreciation to date (including on Revaluation)
(i) As at 31 March of the preceding year 9,60,400 8,27,548
(ii) Charge for the year 1,66,085 1,37,017
(iii) On deductions during the year (3,388) (4,165)
Total 11,23,097 9,60,400
Net Block 60,16,507 46,96,138
II. Other Fixed Assets (Gross Block including Furniture & Fixtures)*
(i) As at 31 March of the preceding year 48,35,803 43,83,578
(ii) Additions during the year 10,49,580 6,10,921
(iii) Deductions during the year (1,08,836) (1,58,696)
Total 57,76,547 48,35,803
Depreciation to date
(i) As at 31 March of the preceding year 34,48,329 30,96,540
(ii) Charge for the year 6,04,025 5,00,123
(iii) On deductions during the year (86,016) (1,48,334)
Total 39,66,338 34,48,329
Net Block 18,10,209 13,87,474
III. Capital Work In Progress 4,35,964 5,28,226
TOTAL (I+II+III) 82,62,680 66,11,838

* Refer Schedule 18 (7) (Other Fixed Assets (including furniture and fixtures))

108 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

SCHEDULE 11 - OTHER ASSETS

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Inter-Office Adjustments (Net) - -
II. Interest accrued 63,02,900 54,57,115
III. Tax paid in Advance/Tax deducted at Source (Net of provision) 7,12,710 6,86,165
IV. Stationery and Stamps 6,160 4,129
V. Non-Banking Assets acquired in satisfaction of claims (Net) - -
VI. Deferred Tax Assets (Net)* 15,99,884 22,99,913
VII. Others ** 1,34,58,131 1,04,94,501
TOTAL 2,20,79,785 1,89,41,823

* Refer Schedule 18 (11.7) (Deferred Tax)

**Includes Priority Sector Shortfall Deposits of ` 1,188.40 crore (previous year ` 934.31 crore)

SCHEDULE 12 - CONTINGENT LIABILITIES

As on 31.03.2023 As on 31.03.2022
(` in 000's) (` in 000's)
I. Claims against the Bank not acknowledged as debts 3,47,889 3,54,946
II. Liability for partly paid investments - -
III. Liability on account of outstanding forward exchange and derivative
contracts
(a) Forward Contracts 3,44,16,308 1,77,82,740
(b) Interest Rate Swaps and Currency Swaps - -
(c) Foreign Currency Options - -
IV. Guarantees given on behalf of constituents
(a) In India 1,24,40,018 1,10,69,197
(b) Outside India 7,03,062 7,07,795
V. Acceptances, Endorsements and other obligations 11,62,826 23,19,491
VI. Other items for which the Bank is contingently liable* 19,06,406 1,83,86,810
TOTAL 5,09,76,509 5,06,20,979
* includes
i) ` 102 crore of lending under RBI Liquidity Adjustment Facility outstanding as at March 31, 2023 (Previous Year :
` 1,718 crore as on March 31, 2022) as per RBI circular FMRD.DIRD. 10/14.03.002/2015-16.
ii) ` 70.27 crore (Previous year: ` 61.54 crore) being amount transferred to DEA Fund Cell, RBI and outstanding, as
per RBI circular DBOD.No.DEAF Cell.BC.114/30.01.002/2013-14.
iii) ` 2.77 crore (Previous Year : ` 5.29 crore) includes capital commitment towards unpaid commitment towards new
premises and undrawn amount of Alternative Investment Fund
SCHEDULE 13 - INTEREST EARNED
Year Ended Year Ended
31.03.2023 31.03.2022
(` in 000’s) (` in 000’s)
I. Interest/Discount on Advances/Bills 3,39,48,224 2,83,17,721
II. Income on Investments 70,78,215 59,06,615
III. Interest on Balance with Reserve Bank of India and other Inter Bank 6,34,989 5,71,516
Funds
IV. Others 3,41,282 3,31,798
TOTAL 4,20,02,710 3,51,27,650

Annual Report 2022-23 | 109

DCB Bank Limited

SCHEDULE 14 - OTHER INCOME

Year Ended Year Ended
31.03.2023 31.03.2022
(` in 000’s) (` in 000’s)
I. Commission, Exchange and Brokerage 30,29,629 23,79,917
II. Profit/(Loss) on sale of Investments (Net) 1,09,088 8,08,515
III. Profit/(Loss) on revaluation of Investments (Net) (14,076) (67,856)
IV. Profit/(Loss) on sale of Land, Buildings and Other Assets (Net) (7,699) (2,282)
V. Profit/(Loss) on Exchange Transactions (Net) 2,81,244 2,84,614
VI. Income earned by way of Dividends, etc. from Subsidiaries, - -
Companies and/or Joint Ventures abroad/in India
VII. Miscellaneous Income 6,95,718 11,17,484
TOTAL 40,93,904 45,20,392

SCHEDULE 15 - INTEREST EXPENDED

Year Ended Year Ended
31.03.2023 31.03.2022
(` in 000’s) (` in 000’s)
I. Interest on Deposits 2,22,71,306 1,88,57,212
II. Interest on Reserve Bank of India/Inter-Bank Borrowings 3,66,577 6,62,128
III. Other Interest 21,94,775 20,33,236
TOTAL 2,48,32,658 2,15,52,576

SCHEDULE 16 - OPERATING EXPENSES

Year Ended Year Ended
31.03.2023 31.03.2022
(` in 000’s) (` in 000’s)
I. Payments to and Provisions for Employees 69,28,957 53,91,355
II. Rent, Taxes and Lighting 12,32,640 9,77,862
III. Printing and Stationery 1,10,793 86,325
IV. Advertisement and Publicity 53,691 33,663
V. Depreciation on Bank's property 7,70,110 6,37,140
VI. Directors' Fees, Allowances and Expenses 15,487 13,492
VII. Auditors' Fees and Expenses 16,021 14,824
VIII. Law Charges 1,54,212 1,04,258
IX. Postages,Telegrams,Telephones, etc. 2,02,308 1,60,275
X. Repairs and Maintenance 4,04,051 2,96,223
XI. Insurance 4,21,958 3,73,587
XII. Other Expenditure* 30,86,391 20,36,639
TOTAL 1,33,96,619 1,01,25,643

* includes an amount of ` 8.85 crore (Previous year : ` 9.66 crore) being Corporate Social Resposibility Expenditure
as per requirenment of Section 135 of the Companies Act, 2013

(Refer Note 18 (13.2) (Corporate Social Responsibility))

110 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

SCHEDULE 17 – SIGNIFICANT ACCOUNTING POLICIES

1. BACKGROUND

DCB Bank Limited (“DCB” or “the Bank”), incorporated in Mumbai, India is a publicly held banking company
engaged in providing banking and financial services and governed by the Banking Regulation Act, 1949 and the
Companies Act, 2013.

2. BASIS OF PREPARATION

The financial statements have been prepared and presented under the historical cost convention and on the accrual
basis of accounting unless otherwise stated, and comply with the Generally Accepted Accounting Principles in
India (‘GAAP’), statutory requirements prescribed under the Banking Regulation Act, 1949, circulars and guidelines
issued by the Reserve Bank of India (the “RBI”) from time to time and the Accounting Standards notified under
Section 133 of the Companies Act 2013 read with paragraph 7 of the Companies (Accounts) Rules, 2014 and the
Companies (Accounting Standard) Amendment Rules, 2016 as amended, in so far as they apply to banks and the
current practices prevailing within the banking industry in India.

3. USE OF ESTIMATES

The preparation of the financial statements in conformity with GAAP requires the management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
at the date of the financial statements and the results of operations during the reporting period. Although these
estimates are based upon the management’s best knowledge of current events and actions, actual results could
differ from these estimates. Any revisions to the accounting estimates are recognised prospectively in the current
and future periods.

4. INVESTMENTS

4.1 Classification:
The investment portfolio comprising approved securities (predominantly Government Securities) and
other securities (Pass through Certificates, Shares, Debentures and Bonds, etc.) is classified at the time
of acquisition in accordance with the RBI guidelines under three categories viz. ‘Held to Maturity’ (‘HTM’),
‘Available for Sale’ (‘AFS’) and ‘Held for Trading’ (‘HFT’). For the purposes of disclosure in the Balance
Sheet, they are classified under six groups viz. Government Securities, Other Approved Securities, Shares,
Debentures and Bonds, Subsidiaries and/or joint ventures and Other Investments.
The Bank follows ‘Settlement Date’ accounting for recording purchase and sale transactions..

4.2 Basis of Classification:

Investments that are held principally for resale within 90 days from the date of purchase are classified as
HFT securities. As per the RBI guidelines, HFT securities, which remain unsold for a period of 90 days are
reclassified as AFS securities as on that date.
Investments which the Bank intends to hold till maturity are classified as HTM securities.
Investments which are not classified in the above categories are classified as AFS securities.

4.3 Transfer of Securities between Categories:

The transfer/shifting of securities between categories of investments is accounted as per the RBI guidelines.

4.4 Acquisition Cost:

Cost including brokerage, commission pertaining to investments, paid at the time of acquisition, is charged
to the Profit and Loss Account.
Broken period interest is charged to the Profit and Loss Account.
Cost of investments is computed based on the weighted average cost method.
Annual Report 2022-23 | 111
DCB Bank Limited

4.5 Valuation:

Held for Trading and Available for Sale categories:

Investments classified under HFT and AFS are marked to market as per the RBI guidelines. These securities
are valued scrip-wise and any resultant depreciation or appreciation is aggregated for each category. The
net depreciation for each category within each group is provided for, whereas the net appreciation for each
category is ignored. The book value of individual securities is not changed consequent to periodic valuation
of investments.

Traded investments are valued based on the trades / quotes from the recognised stock exchanges, prices
declared by Primary Dealers Association of India (‘PDAI’) jointly with Fixed Income Money Market and
Derivatives Association (‘FIMMDA’)/Financial Benchmark India Private Limited (‘FBIL’), periodically.

The market value of unquoted government securities which qualify for determining the Statutory Liquidity
Ratio (‘SLR’) included in the AFS and HFT categories is computed as per the Yield-to-Maturity (‘YTM’) rates
published by FIMMDA/FBIL.

The valuation of other unquoted fixed income securities (viz. State government securities, Other approved
securities, Bonds and debentures, Pass through Certificates) wherever linked to the YTM rates, is computed
with a mark-up (reflecting associated credit and liquidity risk) over the YTM rates for government securities
with similar maturity, published by FIMMDA/FBIL. Unquoted equity shares are valued at the break-up value,
if the latest Balance Sheet is available or at ` 1 as per the RBI guidelines. Units of mutual funds are valued at
the latest repurchase price / net asset value declared by the mutual fund. Treasury bills, commercial papers
and certificate of deposits, being discounted instruments, are valued at carrying cost.

Units of Alternate Investment Fund (‘AIF’) held under AFS category are marked to market based on the
NAV provided by AIF based on the latest audited financial statements. In case the audited financials are not
available for a period beyond 18 months, the investments are valued at ` 1 per AIF.

In the event provisions recognised on account of depreciation in the AFS or HFT categories are found to be
in excess of the required amount in any year, such excess is recognised in the Profit and Loss Account and
subsequently appropriated, from profit available for appropriation, if any, to Investment Reserve Account in
accordance with the RBI guidelines after adjusting for income tax and appropriation to Statutory Reserve..

Held to Maturity:

These are carried at their acquisition cost and are not marked to market. Any premium on acquisition is
amortised over the remaining maturity period of the security on a straight-line basis. Provision is recognised
for diminution other than temporary in the value of such investments for each investment individually.

Non-performing investments are identified and provision is recognised as per the RBI guidelines.

4.6 Security Receipts (SR):

Where sale of stressed asset results in a consideration lower than the value of the stressed assets net of
provisions carried there against, the shortfall is debited to Profit & Loss account. Where such sale results in
consideration higher than the value of the stressed assets net of provisions carried there against, the excess
is netted off against the cost of corresponding SRs to arrive at their Book Value.

SRs issued by Asset Reconstruction Companies (‘ARC’) are valued at Net Asset Value (‘NAV’) declared by
the ARC except in respect of stressed assets which are sold on or after Apr 1, 2018 and the Bank holds more
than 90% of SRs backed by its sold assets, the provision held against the Book Value of these SRs is higher
of provision required in terms of NAV declared by the ARC and provisioning applicable to the underlying
loans, assuming that the assets sold notionally continued in the books of the Bank.

112 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

4.7 Disposal of Investments:

Profit/Loss on sale of investment under the aforesaid three categories is recognised in the Profit and Loss
Account. The profit on sale of investment in HTM category, net of taxes and transfer to Statutory Reserve, is
appropriated to Capital Reserve.

4.8 Repo and reverse repo transactions:

Repo and reverse repo transactions are accounted for as secured borrowing/ lending transactions
respectively. Borrowing cost on repo transactions is treated as interest expense and income on reverse repo
transactions is treated as interest income.

4.9 Short Sale:

In accordance with the RBI guidelines, the Bank undertakes short sale transactions in Central Government
dated securities. The short positions are reflected in ‘Securities Short Sold (‘SSS’) A/c’, specifically created
for this purpose. Such short positions are categorised under HFT category and netted off from investments
in the Balance Sheet. These positions are marked-to-market along with the other securities under HFT
portfolio and the resultant mark-to-market gains/losses are accounted for as per the relevant RBI guidelines
for valuation of investments discussed earlier.

5. ADVANCES

5.1 In pursuance of guidelines issued by the RBI, advances are classified as Standard, Sub-Standard, Doubtful
and Loss Assets and are stated net of specific provisions made towards NPAs and floating provisions.

5.2 Advances are net of bills rediscounted, Inter-bank participation with risk, provisions for non- performing
advances, floating provisions, unrealised fees and unrealised interest held in suspense account.

5.3 Credit facility/investment are classified as performing and non-performing asset as per applicable RBI
guidelines.

5.4 In case of NPAs other than retail EMI loans, recoveries effected are first adjusted towards the principal
amount. In case of retail EMI loans, recoveries effected are adjusted towards the EMI and within the EMI first
towards the principal amount.

5.5 Provision for non-performing advances (‘NPAs’) comprising sub-standard, doubtful and loss assets is made in
accordance with the RBI guidelines which prescribe minimum provision levels and encourage banks to make
a higher provision based on sound commercial judgement. NPAs are identified by periodic appraisals of the
loan portfolio by the management. In respect of identified NPAs in Retail portfolio, provision is recognised on
the homogeneous retail loans and advances assessed at borrower level on the basis of ageing of loans in the
non-performing category and in respect of identified NPAs in other cases, provision is recognised account
by account. The provisioning done is at or higher than the minimum rate prescribed under the RBI guidelines.
The non-performing assets are written-off in accordance with the Bank’s policy.

5.6 In case of restructured/rescheduled assets, provision is made in accordance with the guidelines issued by
the RBI as applicable, which require the diminution in the fair value of the assets to be provided in the Profit
and Loss Account at the time of restructuring.

5.7 In addition to the above, the Bank, on a prudent basis, recognises provisions on advances or exposures
which are performing assets as per the IRAC norms, but has reasons to believe on the basis of the extant
environment impacting a specific exposure or any specific information, the possible deterioration of a specific
advance or a group of advances or exposures or potential exposures. These provisions are recognised as per
Board approved policy and are classified as Provision for Specific Standard Assets, included under Provision
for Standard Assets and reported under Other Liabilities. These provisions are not reversed to the Profit and
Loss Account but are transferred as provision on the same specific advance / exposure in case the asset
slips into non-performing asset, except in case of full repayment of the exposure when such provision will be
reversed and recognised in the Profit and Loss Account.

Annual Report 2022-23 | 113

DCB Bank Limited

5.8 The Bank maintains general provision for Standard Assets, including credit exposures computed as per the
current marked to market values of foreign exchange forward contracts, at levels stipulated by the RBI from
time to time. These provisions on Standard Assets are included under Other Liabilities.

5.9 The Bank estimates the inherent risk of the unhedged foreign currency exposures of its borrowers as per
the regulatory guidelines stipulated by the RBI from time to time and recognises incremental provisions on
exposures to such entities as per methodology prescribed. These provisions are included in Provision for
Standard Assets and reported under Other Liabilities.

5.10 The RBI guidelines further permit banks to create floating provisions on Advances up to levels as per a
Board approved policy over and above the regulatory provisions required on standard assets. These floating
provisions are netted from Advances. These provisions are not reversed by credit to the Profit and Loss
Account without prior approvals of the Board and the RBI under specific circumstances.

5.11 The Bank enters into transactions for the sale or purchase of Priority Sector Lending Certificates (PSLCs).
In the case of a sale transaction, the Bank sells the fulfilment of priority sector obligation and in the case
of a purchase transaction the Bank buys the fulfilment of priority sector obligation through RBI trading
platform. There is no transfer of risks or loan assets. The fee received for the sale of PSLCs is recorded as
miscellaneous income and the fee paid for purchase of the PSLCs is recorded as other expenditure in Profit
and Loss Account.

6. FIXED ASSETS

Premises and other fixed assets are stated at historical cost (or revalued amounts, as the case may be), less
accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended use. Subsequent expenditure incurred on assets
put to use is capitalised only when it increases the future benefit / functioning capability from / of such assets.
Profit on sale of immovable properties are transfer to the Capital Reserves after adjusting for income tax and
appropriation to Statutory Reserve.

7. REVALUATION OF FIXED ASSETS

Portfolio of immovable properties is revalued periodically by an independent valuer to reflect current market
valuation. All land and building owned by the Bank and used as branches or offices are grouped under “Office
Premises” in the fixed assets category. Appreciation, if any, on revaluation is credited to Revaluation Reserve
under Capital Reserves. Additional Depreciation on the revalued asset is charged to the Profit and Loss Account
and appropriated from the Revaluation Reserves to Profit and Loss Account i.e. revenue reserves.

8. DEPRECIATION & AMORTISATION

Depreciation on fixed assets, including amortisation of software, is charged over the estimated useful life of the
fixed assets on a straight-line basis at the rates and in the manner prescribed in Schedule II of the Companies Act,
2013, except as mentioned below. The useful life of an asset is the period over which an asset is expected to be
available for use to the Bank.
 Computer: Desktop and Laptop – 3 years.
 Hardware and Servers - 5 years.
 Air conditioners – 9 years.
 Core Software for Bank Operations – 8 years.
 Application Software and System Development Expenditure – 3 years to 5 years.
 Improvements (Civil) to Leased Premises and Fixed Furniture in Leased Premises such as work-stations, etc.
– over the contracted period of the lease or 5 years (Previous Year: 3 years) whichever is less.
 Vehicles – 19% p.a. over 5 years with 5% residual value.

114 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

 Cash safe and Safe Deposit Vaults – 10 years.

Assets purchased/sold during the year are depreciated on a pro-rata basis, based on the actual number of
days the assets have been put to use.

9. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and risks specific to the asset.
After impairment, depreciation is provided on the revised carrying amount of the asset over remaining useful life.

10. RECOGNITION OF INCOME AND EXPENDITURE

10.1 Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Bank and
the revenue can be reliably measured.

10.2 Items of income and expenditure are accounted on accrual basis.

10.3 Interest income is recognised in the Profit and Loss Account on accrual basis as per Accounting Standard,
except in the case of non-performing assets where it is recognised on receipt basis as per the RBI norms.

10.4 Interest income on investments in Pass Through Certificates (PTC) is recognised at the coupon rate.

10.5 Interest income on loans bought out through the direct assignment route is recognised at the effective
interest rate i.e. after amortising premium, if any, on the bought out portfolio as per Guidelines on Securitised
Transactions issued by the RBI.

10.6 Processing fees on loans are recognised as income on accrual basis, however processing overheads on loans
are expensed at the inception of the loan.

10.7 Overdue rent on safe deposit lockers is accounted for when there is certainty of receipts.

10.8 Guarantee commission, annual safe deposit locker rent fees are recognised on a straight-line basis over the
period of contract. Letters of credit (‘LC’) are generally issued for a shorter tenor, typically of 90 days. The
commission on such LC is recognised when due.

10.9 Dividend income is recognised as income when the right to receive dividend is established..

11. FOREIGN CURRENCY TRANSACTIONS

11.1 Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency
amount the exchange rate between the reporting currency and foreign currency on the date of the
transaction.

11.2 Conversion:

Foreign currency monetary items are reported using the closing rate notified by Foreign Exchange Dealers’
Association of India (‘FEDAI’) at the Balance Sheet date and the resulting profit or loss is recognised in the
Profit and Loss Account, as per the guidelines issued by the RBI.

Annual Report 2022-23 | 115

DCB Bank Limited

11.3 Exchange differences:

Exchange difference arising on settlement of monetary items is recognised as income or as expense in the
year in which it arises. Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items
which are carried at fair value or other similar valuations denominated in a foreign currency are reported
using the exchange rates that existed when the values were determined.

Foreign exchange forward contracts not intended for trading that are entered into to establish the amount
of reporting currency required or available at the settlement date of transactions, which are outstanding at
the Balance Sheet date are effectively valued at the closing spot rate. The premium or discount arising at
the inception of such a forward exchange contract is amortised as expense or income over the life of the
contract.

11.4 Outstanding forward exchange contracts are revalued at the Balance Sheet date at the rates notified by
FEDAI and at interpolated rates for contracts of interim maturities. The resultant gain/loss on revaluation is
recognised in the Profit and Loss Account in accordance with the RBI/FEDAI guidelines.

11.5 Contingent liabilities denominated in foreign currencies are disclosed in the Balance Sheet at the rates
notified by FEDAI as at the Balance Sheet date.

11.6 Forward exchange contracts and other derivative contracts which have overdue receivables remaining
unpaid over 90 days or more are classified as non-performing assets and provided for as per the extant
master circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning issued by
the RBI

12. DERIVATIVE TRANSACTIONS

Valuation of Exchange Traded Interest Rate Futures is carried out on the basis of the daily settlement price of
each contract provided by the exchange. Changes in the fair value of the Exchange Traded Interest Rate Futures
are recognised in the Profit and Loss Account.

13. EMPLOYEE BENEFITS

13.1 Defined Benefit Plan

Provision in respect of future liability for payment of gratuity is made on the basis of actuarial valuation on
projected unit credit method made at the end of the year. Gratuity is funded with the Gratuity Trust duly
registered under the provisions of Income tax Act, 1961. Actuarial gains/losses are recognised immediately
in the Profit and Loss Account and are not deferred.

13.2 Defined Contribution Scheme

Retirement benefits in the form of provident fund and national pension scheme is a defined contribution
scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions
to the fund are due. There is no other obligation other than the contribution payable to the fund.

14. TAXES ON INCOME

14.1 Tax expense comprises current and deferred taxes. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred Income Tax reflects
the impact of current year timing differences between the taxable income and the accounting income for
the year and reversal of timing differences of earlier years.

14.2 Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax

116 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

liabilities relate to taxes levied by same governing taxation laws. Deferred tax assets are recognised only to
the extent that there is reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realised. In situations where the Bank has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported
by convincing evidence that they can be realised against future taxable profits.

14.3 At each Balance Sheet date, the Bank re-assesses unrecognised deferred tax assets and recognises deferred
tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such deferred tax assets can be realised.

15. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognised when there is a present legal or statutory obligation as a result of past events leading
to probable outflow of resources, where a reliable estimate can be made of the amount required to settle the
obligation.

Contingent Liabilities are recognised only when there is a possible obligation arising from past events due to
occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Bank,
or where there is a present obligation arising from a past event which is not recognised as it is not probable
that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made. When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed in the financial statements.

16. EMPLOYEE SHARE BASED PAYMENTS

Measurement and disclosure of employee share-based employment plans is done in accordance with the
Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 / Guidance Note
on Accounting for the Employee Share-based Payments issued by The Institute of Chartered Accountants
(‘ICAI’) of India. The Bank measures compensation cost relating to employee stock options/cash settled stock
appreciation rights using the fair value method. Deferred compensation expense is amortised over the vesting
period.

17. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect
of dilutive potential equity shares.

18. SHARE ISSUE EXPENSES

Share issue expenses are adjusted from Securities Premium Account in terms of Section 52 of the Companies
Act, 2013.

19. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand and ATMs, balances with the Reserve Bank of India, balances with
other banks and money at call and short notice (including effect of changes in exchange rates on cash and cash
equivalents in foreign currency)..

Annual Report 2022-23 | 117

DCB Bank Limited

20. LEASES

Leases where the Lessor effectively retains substantially all risks and benefits of ownership of the leased item
are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss
Account on a straight-line basis over the lease term.

21. SEGMENT REPORTING

As per the RBI guidelines on Segment Reporting, the Bank has classified its activity into Treasury Operations,
Corporate/Wholesale Banking, Retail Banking and Other Banking Operations.

Treasury Operations includes all financial markets activities undertaken on behalf of the Bank’s customers,
proprietary trading, maintenance of reserve requirements and resource mobilisation from other banks and
financial institutions.

Wholesale Banking includes lending, deposit taking and other services offered to corporate customers.

Retail Banking includes lending, deposit taking and other services offered to retail customers.

Other Banking Operations includes para banking activities like third party product distribution, merchant
banking, etc.

118 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

SCHEDULE 18 - NOTES TO ACCOUNTS

1 REGULATORY CAPITAL

1.1 Composition of Regulatory Capital

(` in crore)
Particulars As per Basel III framework
As at As at
March 31, 2023 March 31, 2022
i Common Equity Tier 1 capital (CET 1) 4,284.30 3,850.45
ii Additional Tier 1 capital - -
iii Tier 1 Capital (i + ii) 4,284.30 3,850.45
iv Tier 2 Capital 668.98 749.16
v Total Capital (Tier 1+Tier 2) 4,953.28 4,599.61
vi Total Risk Weighted Assets (RWAs) 28,221.32 24,312.82
vii CET 1 Ratio (%) 15.18% 15.84%
viii Tier 1 Ratio (%) 15.18% 15.84%
ix Tier 2 Ratio (%) 2.37% 3.08%
x Capital to Risk Weighted Assets Ratio (CRAR) (%) 17.55% 18.92%
xi Leverage Ratio (%) 7.83% 8.18%
xii Percentage of shareholding of Government of India - -
xiii Amount of paid-up equity capital raised-
Share Capital: 0.53 0.44
Securities Premium: 2.44 1.93
xiv Amount of non-equity Tier 1 capital raised - -
xv Amount of Tier 2 capital raised 300.00 -

1.2 Draw down from Reserves

The Bank has drawn down ` 0.78 crore from Investment Reserve Account towards depreciation on investment in
AFS and HFT categories in terms of RBI guidelines during the financial year 2022-23.

The Bank has not undertaken any draw down of reserves during the financial year 2021-22.

Annual Report 2022-23 | 119

DCB Bank Limited

2 SUB-ORDINATED DEBT THROUGH PRIVATE PLACEMENT OF BONDS

During the year, the Bank has exercised the call option and redeemed subordinated debt of ` 450.00 crore, the
details of which are set out below:
(` in crore)
Deemed Date of Allotment Coupon Rate (% p.a.) Tenure (in months) Amount
November 17, 2017 9.85 120 300.00
January 12, 2018 9.85 120 150.00

During the year the Bank raised ` 300.00 crore of subordinated debt. The subordinated debts raised
through private placement of bonds are Unsecured Redeemable Non-Convertible Basel III Compliant
Subordinated Tier II bonds in the nature of Debenture to augment capital adequacy.

The details of total outstanding subordinated debt are given below:

(` in crore)
Deemed Date of Coupon Rate Tenure Equivalent Amount Equivalent Amount
Allotment (% p.a.) (in months) as on March 31, 2023 as on March 31, 2022
November 17, 2017 9.85 120 - 300.00
January 12, 2018 9.85 120 - 150.00
March 28, 2023 9.35 120 300.00 -
300.00 450.00

120 | Annual Report 2022-23

 3 INVESTMENTS

3.1 Composition of Investment Portfolio as at March 31, 2023

(` in crore)
Investments in India Investments outside India Total
Invest-
Govern- Other Shares Debentures Subsidiaries Others* Total in- Govern- Subsidiaries Others Total In- ments
ment Approved and Bonds and/or joint vestments ment securi- and/or joint vestments
Securi- Securities ventures in India ties (includ- ventures outside
ties ing local India
authorities)

Held to Maturity

Gross 9,439.14 - - 100.00 - - 9,539.14 - - - - 9,539.14

Less: Provision for non- - - - - - - - - - - - -

performing investments
(NPI)

Net 9,439.14 - - 100.00 - - 9,539.14 - - - - 9,539.14

Available for Sale

Gross 473.79 22.60 25.02 - 2,524.06 3,045.47 - - - - 3,045.47

Less: Provision for - - - 1.35 - 15.85 17.20 - - - - 17.20

depreciation and NPI

Net 473.79 - 22.60 23.67 - 2,508.21 3,028.27 - - - - 3,028.27

Held for Trading

Gross 15.06 - - - - - 15.06 - - - - 15.06

Less: Provision for 0.01 - - - - - 0.01 - - - - 0.01

depreciation and NPI

Net 15.05 - - - - - 15.05 - - - - 15.05

Total Investments

Gross 9,927.99 - 22.60 125.02 - 2,524.06 12,599.67 - - - - 12,599.67

Less: Provision for non- - - - - - - - - - - - -

performing investments

Less: Provision for 0.01 - - 1.35 - 15.85 17.21 - - - - 17.21

depreciation

Net 9,927.98 - 22.60 123.67 - 2,508.21 12,582.46 - - - - 12,582.46

*Includes Certificate Of Deposits, Units of Mutual funds, Pass Through Certificates & Security Receipts
Corporate Overview Management Reports Financial Statements

Annual Report 2022-23 | 121

 Composition of Investment Portfolio as at March 31, 2022
(` in crore)
Investments in India Investments outside India Total
Invest-
Govern- Other Shares Debentures Subsidiaries Others* Total in- Govern- Subsidiaries Others Total In- ments
ment Approved and Bonds and/or joint vestments ment securi- and/or joint vestments
DCB Bank Limited

Securi- Securities ventures in India ties (includ- ventures outside

ties ing local India
authorities)

Held to Maturity

122 | Annual Report 2022-23

Gross 7,496.10 - - 100.00 - - 7,596.10 - - - - 7,596.10

Less: Provision for non- - - - - - - - - - - - -

performing investments
(NPI)

Net 7,496.10 - - 100.00 - - 7,596.10 - - - - 7,596.10

Available for Sale

Gross 127.93 - 22.60 25.02 - 1,342.38 1,517.93 - - - - 1,517.93

Less: Provision for 0.03 - - 0.34 - 15.43 15.80 - - - - 15.80

depreciation and NPI

Net 127.90 - 22.60 24.68 - 1,326.95 1,502.13 - - - - 1,502.13

Held for Trading

Gross** (47.58) - - - - - (47.58) - - - - (47.58)

Less: Provision for - - - - - - - - - - - -

depreciation and NPI

Net (47.58) - - - - - (47.58) - - - - (47.58)

Total Investments

Gross 7,576.45 - 22.60 125.02 - 1,342.38 9,066.45 - - - - 9,066.45

Less: Provision for non- - - - - - - - - - - - -

performing investments

Less: Provision for 0.03 - - 0.34 - 15.43 15.80 - - - - 15.80

depreciation

Net 7,576.42 - 22.60 124.68 - 1,326.95 9,050.65 - - - - 9,050.65

*Includes Certificate Of Deposits, Units of Mutual funds, Pass Through Certificates & Security Receipts
**Short Sale transactions netted off
 Corporate Overview Management Reports Financial Statements

3.2 Movement of Provisions for Depreciation and Investment Fluctuation Reserve

(` in crore)
Particulars March 31, 2023 March 31, 2022
(i) Movement of provisions held towards depreciation on investments
(a) Opening balance 15.8 18.69
(b) Add: Provisions made during the year 3.81 12.14
(c) Less: Write-off/ write-back of excess provisions during the year 2.4 15.03
(d) Closing balance 17.21 15.8
(ii) Movement of Investment Fluctuation Reserve (IFR)
(a) Opening balance 38.64 38.64
(b) Add: Amount transferred during the year 22.57 -
(c) Less: Drawdown - -
(d) Closing balance 61.21 38.64
(iii) Closing balance in IFR as a percentage of closing balance of 2.00% 2.55%
investment in AFS and HFT category

3.3 Sale and Transfers to / from HTM Category

During the years ended March 31, 2023 and March 31, 2022, the Bank has not sold and transferred securities to or
from HTM category exceeding 5% of the book value of investment held in HTM category at the beginning of the
year. The 5% threshold referred to above does not include one-time transfer of securities to/from HTM category
with the approval of Board of Directors permitted to be undertaken by banks as per the extant RBI guidelines,
sale of securities to the RBI under liquidity management operations of RBI like Open Market Operations (OMO)
and the Government Securities Acquisition Programme (GSAP) and sale of securities or transfer to AFS / HFT
consequent to the reduction of ceiling on SLR securities under HTM.

3.4 Non-SLR investment portfolio

(a) Non-performing non-SLR Investments

(` in crore)
Partculars March 31, 2023 March 31, 2022
Opening Balance - -
Additions during the year - -
Reductions during the year - -
Closing Balance - -
Total provisions held - -

Annual Report 2022-23 | 123

DCB Bank Limited

(b) Issuer composition of non-SLR investments

Balances as at March 31, 2023

(` in crore)
Sr. Issuer Amount Extent of Extent of ‘Below Extent of Extent of
No. Private Investment ‘Unrated’ ‘Unlisted’
Placement*# Grade’ Securities# Securities*#
Securities#
1. PSUs - - - - -
2. FIs 141.00 115.98 - 5.98 25.98
3. Banks - - - - -
4. Private Corporates 12.00 12.00 - 10.00 12.00
5. Subsidiaries/ Joint Ventures - - - - -
6. Others** 2,518.68 - - - -
7. Provision held towards (17.20) - - - -
Depreciation
Total 2,654.48 127.98 - 15.98 37.98
*excludes investment in pass through certificates and security receipts.
**includes investments in pass through certificates and security receipts.
# Amounts reported under these columns above are not mutually exclusive.

Balances as at March 31, 2022

(` in crore)
Sr. Issuer Amount Extent of Extent of ‘Below Extent of Extent of
No. Private Investment ‘Unrated’ ‘Unlisted’
Placement*# Grade’ Securities# Securities*#
Securities#
1. PSUs - - - - -
2. FIs 138.72 113.70 - 3.70 23.70
3. Banks 49.62 - - - -
4. Private Corporates 12.00 12.00 - 10.00 12.00
5. Subsidiaries/ Joint Ventures - - - - -
6. Others** 1,289.66 - - - -
7. Provision held towards (15.77) - - - -
Depreciation
Total 1,474.23 125.70 - 13.70 35.70
*excludes investment in pass through certificates and security receipts.
**includes investments in pass through certificates and security receipts.
# Amounts reported under these columns above are not mutually exclusive.

124 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

3.5 Repo Transactions

Financial Year 2022-23
(` in crore)
Minimum Maximum Daily Average Balance as at
outstanding outstanding outstanding March 31, 2023
during the year during the year during the year
Securities Sold under Repos * 100.00 338.79 103.78 100.00
(i) Government Securities 100.00 338.79 103.78 100.00
(ii) Corporate debt Securities - - - -
(iii) Any other Securities - - - -
Securities purchased under Reverse Repos * - 2,490.04 462.23 -
(i) Government Securities - 2,490.04 462.23 -
(ii) Corporate debt Securities - - - -
(iii) Any other Securities - - - -
* including securities sold and purchased under LAF and TREPS.
** amounts reported are based on lending/borrowing amount.

Financial Year 2021-22 (` in crore)

Minimum Maximum Daily Average Balance as at
outstanding outstanding outstanding March 31, 2022
during the year during the year during the year
Securities Sold under Repos * 100.00 247.85 103.02 100.00
(i) Government Securities 100.00 247.85 103.02 100.00
(ii) Corporate debt Securities - - - -
(iii) Any other Securities - - - -
Securities purchased under Reverse Repos * 397.00 2,609.35 1,489.38 1,616.35
(i) Government Securities 397.00 2,609.35 1,489.38 1,616.35
(ii) Corporate debt Securities - - - -
(iii) Any other Securities - - - -
* including securities sold and purchased under LAF and TREPS.
** amounts reported are based on lending/borrowing amount.

4 DERIVATIVES

4.1 Forward Rate Agreements / Interest Rate Swaps

(` in crore)

Particulars March 31, 2023 March 31, 2022

i. The notional principal of swap agreements NIL NIL
ii. Losses which would be incurred if counterparties failed to fulfill NIL NIL
their obligations under the agreements
iii. Collateral required by the bank upon entering into swaps NIL NIL
iv. Concentration of credit risk arising from the swaps NIL NIL
v. The fair value of the swap book NIL NIL

Annual Report 2022-23 | 125

DCB Bank Limited

4.2 Exchange Traded Interest Rate Derivatives

(` in crore)
Sr. Particulars March 31, 2023 March 31, 2022
No.
i. Notional principal amount of exchange traded interest rate
derivatives undertaken during the year (instrument-wise)
a) 6.54 G-Sec 2032 297.94
b) 6.10 G-Sec 2031 266.17 817.61
c) 5.85 G-Sec 2030 - 297.04
d) 6.64 G-Sec 2035 - 73.72
ii. Notional principal amount of exchange traded interest rate NIL NIL
derivatives outstanding (instrument-wise)
iii. Notional principal amount of exchange traded interest rate NIL NIL
derivatives outstanding and not "highly effective" (instrument-wise)
iv. Mark-to-market value of exchange traded interest rate derivatives NIL NIL
outstanding and not "highly effective" (instrument-wise)

4.3 Disclosures on risk exposure in derivatives:

a) Qualitative Disclosures
Management of Risk in Derivatives Trading

The Bank’s market risk unit plays a key role in setting up of the limits and laying down of the risk assessment
and monitoring methods. The policies of the Bank include setting limits upon the notional principal value of
product specific gaps, maximum tenor, overall outstanding and the setting-up of counter party-wise, tenor-
wise limits.

All limits are monitored on a daily basis by the Mid Office. Exposure reports are submitted to the Treasurer as
well as the CRO and any limit excesses are brought to the notice of the management immediately for further
action.

Policies for Hedging Risk

All transactions undertaken by the Bank for trading purposes are classified under the Trading Book. All other
transactions are classified as a part of the Banking Book. The Banking Book includes transactions concluded
for the purpose of providing structures to customers on a back-to-back basis. It also consists of transactions
in the nature of hedges based on identification of supporting trades, with appropriate linkages done for
matching amounts and tenor within the approved tolerance limits.

The accounting for all derivative trades is done for the notional amount on the trade date. The valuation
of all outstanding trades is done category wise. The valuation for outstanding trades under the Trading
portfolio is done on a daily basis and the net marked to market (‘MTM’) is accounted in the Profit and Loss
Account. The valuation for outstanding trades under the hedged portfolio is done on a monthly basis and
the residual MTM, if any, is accounted in the Profit and Loss Account on a monthly basis.

The MTM position on all outstanding trades of individual corporate customers is reported on a monthly basis
to Credit Risk department for exposure monitoring.

Provisioning

The Bank conforms to the RBI guidelines with regard to provisioning requirements. Overdue receivables
representing crystallised positive mark-to-market value of a derivative contract are treated as non-performing
assets, if these remain unpaid for 90 days or more. Full provision is made for the entire amount of overdue and
future receivables relating to positive marked to market value of non-performing derivative contracts.

126 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

b) Quantitative Disclosures
(` in crore)
Sr. Particulars Currency Interest Rate Currency Interest Rate
No Derivatives Derivatives Derivatives Derivatives
March 31, 2023 March 31, 2023 March 31, 2022 March 31, 2022
1. Derivatives (notional
Principal Amount)
(a) For hedging NIL NIL NIL NIL
(b) For trading NIL NIL NIL NIL
2. Marked to Market position
(a) Asset (+) NIL NIL NIL NIL
(b) Liability (-) NIL NIL NIL NIL
3. Credit Exposure NIL NIL NIL NIL
4. Likely impact of one
percentage change in
Interest Rate (100*PV01)
(a) On hedging derivatives NIL NIL NIL NIL
(b) On trading derivatives NIL NIL NIL NIL
5. Maximum and Minimum of
100*PV01 observed during
the year
(a) On hedging
Maximum NIL NIL NIL NIL
Minimum NIL NIL NIL NIL
(b) On trading
Maximum NIL 0.24 NIL 0.12
Minimum NIL 0.01 NIL 0.00
Notes:
1 Foreign exchange forward contracts have not been included in the above disclosure.
2 The notional principal amount of forward exchange contracts classified as Hedging and Trading
amounted to ` 3,441.63 crore (Previous year: ` 1,778.27 crore).

4.4 Credit Default Swaps

The Bank has not transacted in credit default swaps during the year ended March 31, 2023 (Previous year: NIL).

Annual Report 2022-23 | 127

DCB Bank Limited

5 ASSET QUALITY

5.1 Classification of advances and provisions held as of March 31, 2023

(` in crore)
Standard Non-Performing Total
Total Sub- Doubtful Loss Total Non-
Standard standard Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 28,561.42 671.23 615.28 3.42 1,289.93 29,851.35
Add: Additions during the year1 1,698.46
Less: Reductions during the year* 1,865.55
Closing balance 34,057.01 488.63 634.21 0.00 1,122.84 35,179.85
*Reductions in Gross NPAs due to: 1,865.55
i) Upgradation 1,131.00
ii) Recoveries (excluding recoveries from upgraded accounts)2 572.51
iii) Technical/ Prudential Write-offs 128.08
iv) Write-offs other than those under (iii) above 33.96

Provisions (excluding Floating Provisions)

Opening balance of provisions held 469.53 196.53 395.03 3.42 594.98 1,064.51
Add: Fresh provisions made during the year 564.06
Less: Excess provision reversed/ Write-off loans 530.00
Closing balance of provisions held 409.54 175.33 453.71 0.00 629.04 1,038.58

Net NPAs
Opening Balance 352.98 220.25 0.00 573.23
Add: Fresh additions during the year3 1,119.24
Less: Reductions during the year 1,335.55
Closing Balance 176.43 180.49 0.00 356.92

Floating Provisions
Opening Balance 121.72
Add: Additional provisions made during the year 15.16
Less: Amount drawn down during the year 0.00
Closing balance of floating provisions 136.88

Technical write-offs and the recoveries made

thereon
Opening balance of Technical/ Prudential written-off 492.46
accounts
Add: Technical/ Prudential write-offs during the year 128.08
Less: Recoveries/Sacrifice made from previously 16.15
technical/ prudential written-off accounts
during the year
Closing balance 604.39
1. Includes fresh NPAs during the year.
2. Includes recoveries in upgraded accounts of ` 43.71 crores.
3. Includes addition to NPAs net off provisions on such NPAs and additional provision on existing NPAs.

128 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Classification of advances and provisions held as of March 31, 2022

(` in crore)
Standard Non-Performing Total
Total Sub- Doubtful Loss Total Non-
Standard standard Performing
Advances Advances
Gross Standard Advances and NPAs
Opening Balance 25,167.27 661.23 422.01 0.20 1,083.44 26,250.71
Add: Additions during the year1 1,771.91
Less: Reductions during the year* 1,565.42
Closing balance 28,561.42 671.23 615.28 3.42 1,289.93 29,851.35
*Reductions in Gross NPAs due to: 1,565.42
i) Upgradation 946.05
ii) Recoveries (excluding recoveries from upgraded 530.92
accounts)2,3
iii) Technical/ Prudential Write-offs 50.40
iv) Write-offs other than those under (iii) above 38.05

Provisions (excluding Floating Provisions)

Opening balance of provisions held 370.86 148.60 231.69 0.20 380.49 751.35
Add: Fresh provisions made during the year 606.14
Less: Excess provision reversed/ Write-off loans 391.65
Closing balance of provisions held 469.53 196.53 395.03 3.42 594.98 1,064.51

Net NPAs
Opening Balance 403.83 190.32 0.00 594.15
Add: Fresh additions during the year4 1,152.84
Less: Reductions during the year 1,173.76
Closing Balance 352.98 220.25 0.00 573.23

Floating Provisions
Opening Balance 108.80
Add: Additional provisions made during the year 12.92
Less: Amount drawn down during the year 0.00
Closing balance of floating provisions 121.72

Technical write-offs and the recoveries made thereon

Opening balance of Technical/ Prudential written-off 494.65
accounts
Add: Technical/ Prudential write-offs during the year 50.40
Less: Recoveries/Sacrifice made from previously 52.59
technical/ prudential written-off accounts
during the year5
Closing balance 492.46
1. Includes fresh NPAs during the year.
2. Includes recoveries of ` 38.77 crores from NPAs sold to asset reconstruction company.
3. Includes recoveries in upgraded accounts of ` 32.30 crores.
4. Includes addition to NPAs net off provisions on such NPAs and additional provision on existing NPAs.
5. Includes ` 41.78 crores pertaining to accounts sold to asset reconstruction company..
Assets quality Ratios

Particulars March 31, 2023 March 31, 2022

Gross NPA to Gross Advances (%) 3.19% 4.32%
Net NPA to Net Advances (%) 1.04% 1.97%
Provision Coverage Ratio (%) 79.34% 67.84%

Annual Report 2022-23 | 129

DCB Bank Limited

5.2 Divergence in the asset classification and provisioning

There was no divergence observed by the RBI for the FY 2021-22 and Bank is not in receipt of any communication
from RBI in this regard for FY 2020-21.

5.3 Sector-wise Advances and Gross NPAs

Financial Year 2022-23

(` in crore)
Sr. Sector March 31, 2023
No. Outstanding Gross Percentage of Gross
Total NPAs NPAs to Total Advances
Advances in that sector
A Priority Sector
1 Agriculture and allied activities 4,209.53 173.22 4.11%
2 Industry of which- 2,850.25 115.53 4.05%
Constructions 1,226.51 22.67 1.85%
Textiles 327.27 10.40 3.18%
3 Services of which- 5,811.46 257.87 4.44%
Retail Trade 2,478.98 52.58 2.12%
Wholesale Trade 989.89 36.59 3.70%
Transport Operators 743.93 122.24 16.43%
4 Personal loans of which- 5,820.05 65.26 1.12%
Housing Loans 3,652.04 61.35 1.68%
Gold Loans 2,136.04 3.82 0.18%
Sub-total (A) (1+2+3+4) 18,691.29 611.88 3.27%

B Non Priority Sector

1 Agriculture and allied activities 274.29 19.87 7.24%
2 Industry of which- 1,094.79 122.17 11.16%
Constructions 279.12 58.49 20.96%
Textiles 179.38 4.26 2.37%
3 Services of which- 7,804.20 269.25 3.45%
Retail Trade 2,956.64 94.84 3.21%
NBFC 1,844.56 1.86 0.10%
Professional Services 798.61 10.31 1.29%
4 Personal loans 7,315.27 99.67 1.36%
Housing Loans 4,798.94 52.38 1.09%
Gold Loans 1,180.41 12.69 1.07%
Sub-total (B) (1+2+3+4) 16,488.55 510.96 3.10%
Total (A+B) 35,179.84 1,122.84 3.19%

130 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Financial Year 2021-22

(` in crore)
Sr. Sector March 31, 2022
No. Outstanding Gross Percentage of Gross
Total NPAs NPAs to Total Advances
Advances in that sector
A Priority Sector
1 Agriculture and allied activities 3,308.52 189.32 5.72%
2 Industry of which- 2,178.75 40.27 1.85%
Constructions 754.65 9.58 1.27%
Textiles 344.52 9.93 2.88%
3 Services of which- 5,660.67 211.91 3.74%
Retail Trade 2,097.42 35.51 1.69%
Wholesale Trade 1,124.14 28.65 2.55%
Transport Operators 1,038.31 110.09 10.60%
4 Personal loans of which- 3,345.89 99.75 2.98%
Housing Loans 3,322.20 98.58 2.97%
Sub-total (A) (1+2+3+4) 14,493.83 541.25 3.73%

B Non Priority Sector

1 Agriculture and allied activities 518.24 12.04 2.32%
2 Industry of which- 1,672.25 118.73 7.10%
Constructions 381.25 33.60 8.81%
Textiles 213.26 8.31 3.90%
Food Processing 207.64 18.42 8.87%
3 Services of which- 6,408.84 416.66 6.50%
Retail Trade 2,362.68 149.07 6.31%
NBFC 1,556.71 3.13 0.20%
4 Personal loans 6,758.19 201.25 2.98%
Housing Loans 3,991.29 71.28 1.79%
Gold Loans 1,886.13 85.64 4.54%
Sub-total (B) (1+2+3+4) 15,357.52 748.68 4.88%
Total (A+B) 29,851.35 1,289.93 4.32%

Classification into sectors as above has been done based on the Bank’s internal norms which have been relied upon by the
auditors.

Annual Report 2022-23 | 131

 5.4 RESTRUCTURED ACCOUNTS

Details of restructured accounts are given in the table below:

(` in crore)

Agriculture and allied Corporates (excluding Micro, Small and Retail (excluding Total
activities MSME) Medium Enterprises agriculture and MSME)
DCB Bank Limited

(MSME)
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

132 | Annual Report 2022-23

Standard Number of borrowers 27 51 5 5 3,149 3,916 4,160 4,440 7,341 8,412
1
Gross Amount 2.31 2.68 36.21 50.60 826.35 1,144.96 846.14 853.05 1,711.01 2,051.29
Provision held 0.17 0.19 10.76 18.61 121.87 168.94 95.83 99.32 228.63 287.06
Sub-standard Number of borrowers 2 2 - - 525 785 125 63 652 850
Gross Amount 0.02 0.28 - - 142.02 128.52 16.67 12.71 158.71 141.51
Provision held 0.00 0.04 - - 50.37 40.06 3.36 2.32 53.73 42.42
Doubtful Number of borrowers 2 3 - - 681 288 150 384 833 675
Gross Amount 1.28 1.44 - - 124.40 72.49 25.10 57.58 150.78 131.51
Provision held 0.74 0.91 - - 94.64 49.39 17.19 44.22 112.57 94.52
Total Number of borrowers 31 56 5 5 4,355 4,989 4,435 4,887 8,826 9,937
Gross Amount1 3.61 4.40 36.21 50.60 1,092.77 1,345.97 887.91 923.34 2,020.50 2,324.31
Provision held 0.91 1.14 10.76 18.61 266.88 258.39 116.38 145.86 394.93 424.00

1. Excludes Interest accrued but not due of ` 67.17 crore (previous year: ` 104.31 crore).

Classification into sectors as above has been done on the Bank’s internal norms which have been relied upon by auditors.
 Corporate Overview Management Reports Financial Statements

5.5 Disclosures on the scheme for MSME sector – restructuring of advances

(` in crore)
Particulars March 31, 2023 March 31, 2022
1. Total number of accounts restructured at the end of year* 3,149 3,916
2. Amount outstanding 826.35 1,144.96
*represents number of borrowers.

5.6 Disclosures on implementation of resolution plan as required under RBI circular dated
June 7, 2019 on Prudential Framework for Resolution of Stressed Assets

Financial Year 2022-23

(` in crore)
Particulars Resolution Plan Resolution Plan
implemented not implemented
No. of borrower where timeline for implementation of resolution - 2
plan was before 31st March 2023
Fund based outstanding as on 31st March 2023 - 33.11
Additional provision held as per RBI circular of June 7, 2019 - 11.59

Financial Year 2021-22

(` in crore)
Particulars Resolution Plan Resolution Plan
implemented not implemented
No. of borrower where timeline for implementation of resolution - 2
plan was before 31st March 2022
Fund based outstanding as on 31st March 2022 - 33.23
Additional provision held as per RBI circular of June 7, 2019 - 11.63

5.7 The Bank continues to monitor the developments/impact including those arising from COVID-19
pandemic.

Under the circumstances, as at March 31, 2023, on a prudent basis, the Bank holds a contingency
provision of ` 52.12 crore towards possible impact of Covid-19 on standard restructured and stressed
assets. As on March 31, 2023, in addition to the above, the Bank holds Floating Provision amounting
to ` 136.88 crore, besides provisions for Standard Assets and specific Non-Performing Assets.

5.8 Disclosures on Resolution Framework for COVID 19 related Stress as per RBI circular DOR.No.BP.
BC.3/21.04.048/2020-21 dated August 06, 2020 (Resolution Framework 1.0) and RBI circular DOR.STR.
REC.11/21.04.048/2021-22 dated May 05, 2021 (Resolution Framework 2.0)

Annual Report 2022-23 | 133

DCB Bank Limited

Financial Year 2022-23

(` in crore)
Type of borrower Exposure to accounts Of (A), Of (A) Of (A) Exposure
classified as Standard aggregate amount amount to accounts
consequent to debt that written paid classified
slipped off by the as Standard
implementation of
into NPA during borrowers consequent to
resolution plan – during the the half- during the implementation of
Position as at the end half-year year half-year resolution plan –
of the previous half- ended Position as at the
year1 (i.e. September March 31, end of this half-
30, 2022) 2023 year2 (i.e. March
(A) 31, 2023)

Personal Loans 535.60 6.39 - 21.19 573.90

Corporate persons 34.01 - - 4.70 29.31
Of which, MSMEs - - - - -
Others 179.93 3.00 - 10.16 167.73
Total 749.54 9.39 - 36.05 770.94
1. Represents fund based outstanding as of September 30, 2022.
2. Represents fund based outstanding as of March 31, 2023.

Financial Year 2021-22

(` in crore)
Type of borrower Exposure to Of (A), aggregate Of (A) Of (A) Exposure
accounts classified as debt that slipped amount amount to accounts
Standard consequent into NPA during written paid classified
the half-year off by the as Standard
to implementation
ended March 31, during borrowers consequent to
of resolution plan – 2022 the half- during the implementation of
Position as at the end year half-year resolution plan –
of the previous half- Position as at the
year1,2 (i.e. September end of this half-
30, 2021) year3 (i.e. March
(A) 31, 2022)

Personal Loans 574.39 2.43 - 17.89 556.51

Corporate persons 52.10 - - 15.84 36.38
Of which, MSMEs 15.28 - - 6.42 8.90
Others 190.27 0.91 - 3.84 186.76
Total 816.76 3.34 - 37.57 779.65
1. Includes cases where resolution plan implemented after September 30, 2021
2. Represents fund based outstanding as of September 30, 2021.
3. Represents fund based outstanding as of March 31, 2022.

134 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

5.9 Number of Frauds reported, amount involved in such frauds, quantum of provisions made during the year and
quantum of unamortized provision debited from ‘other reserves’ as at the end of the year.
(` in crore)
Particulars As at As at
March 31, 2023 March 31, 2022
(a) Number of frauds reported during the year 22 54
(b) Amount involved in fraud 1.55 3.53
(c) Amount involved in fraud net of recoveries/ write-offs as at the end 0.97 3.35
of the year
(d) Provisions made during the year 0.02 3.35
(e) Quantum of unamortised provision debited from ‘other reserves’ at NIL NIL
the end of the year

5.10 Details of financial assets (including written off accounts) sold to Securitisation / Reconstruction Company for
Asset Reconstruction

The Bank has sold certain assets to an asset reconstruction company (ARC) in terms of the guidelines issued by
the RBI. The details of the assets sold are given in the table below:
(` in crore)
Particulars March 31, 2023 March 31, 2022
(i) No. of accounts NIL 43
(ii) Aggregate value (net of provisions) of accounts sold to SC/RC NIL 43.99
(iii) Aggregate consideration NIL 38.77
(iv) Additional consideration realised in respect of accounts transferred 0.66 NIL
in earlier years
(v) Aggregate gain/(loss) over net book value NIL (5.22)

5.11 Details of investment in security receipts (SRs)

Details of investment in security receipts as at March 31, 2023 are set out below:
(` in crore)
Particulars SRs issued within SRs issued more than 5 years SRs issued more
past 5 years ago but within past 8 years than 8 years ago
(i) Book value of SRs 17.92 18.51 1.97
backed by NPAs sold by the
bank as underlying
Provision held against (i) 1.89 18.51* 1.97
(ii) Book value of SRs backed by - - -
NPAs sold by other banks/
financial institutions/non-
banking financial companies
as underlying
Provision held against (ii) - - -
Total (i + ii) 17.92 18.51 1.97

*includes provision of ` 6.52 crore made on investment in SRs under Schedule 5 – Other Liabilities and Provisions

Annual Report 2022-23 | 135

DCB Bank Limited

Details of investment in security receipts as at March 31, 2022 are set out below:

(` in crore)
Particulars SRs issued within SRs issued more than 5 years SRs issued more
past 5 years ago but within past 8 years than 8 years ago
(i) Book value of SRs backed 24.47 24.67 -
by NPAs sold by the bank as
underlying
Provision held against (i) 3.44 24.67* -
(ii) Book value of SRs backed by - - -
NPAs sold by other banks/
financial institutions/non-
banking financial companies
as underlying
Provision held against (ii) - - -
Total (i + ii) 24.47 24.67 -
*includes provision of ` 12.68 crore made on investment in SRs under Schedule 5 – Other Liabilities and Provisions

5.12 Details of loans transferred / acquired under the RBI Master Direction on Transfer of Loan Exposures dated
September 24, 2021
(i) The Bank has not transferred any non-performing assets (NPAs).
(ii) The Bank has not transferred any Special Mention Account (SMA) and loan not in default.
(iii) Details of loans not in default acquired through assignment are given below:

(` in crore)
Particulars March 31, 2023 March 31, 2022
(a) Aggregate amount of loans acquired1 1,030.31 421.89
(b) Weighted average residual maturity (in years) 5.51 4.81
(c) Weighted average holding period by originator (in years) 1.15 0.65
(d) Retention of beneficial economic interest by the originator 10% to 15% 10%
(e) Tangible security coverage (for secured loans) 2
100% 100%
1. Includes deals amounting to ` 425.21 crores (Previous year: ` NIL) which are disbursed for unsecured business loans and
personal loans.
2. Tangible security of loans acquired during the year is more than 100% however the same is restricted to 100% coverage for the
purpose of this disclosure.
The Loans acquired are not rated as these are non-corporate borrowers.

(iv) The Bank has not acquired any stressed loans.

5.13 a) Details of non-performing financial assets purchased from other banks

(` in crore)
Particulars March 31, 2023 March 31, 2022
1 (a) No. of accounts purchased during the year NIL NIL
(b) Aggregate outstanding NIL NIL
2 (a) Of these, number of accounts restructured during the year NIL NIL
(b) Aggregate outstanding NIL NIL

136 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

b) Details of non-performing financial assets sold to other banks

(` in crore)
Particulars March 31, 2023 March 31, 2022
1. No. of accounts sold during the year NIL NIL
2. Aggregate outstanding NIL NIL
3. Aggregate consideration received NIL NIL

5.14 Provisions on Standard Assets

(` in crore)
Particulars March 31, 2023 March 31, 2022
Provision for Standard Assets1 278.02 288.07
Provision for Unhedged Foreign Currency Exposure of borrowers 2.75 2.75
Provision for Specific Standard Assets2 78.97 116.54
Total (Refer Schedule 5-IV(i) – Other Liabilities and Provisions) 359.74 407.36
1. Includes provision for standard restructured assets.
2. Include of ` 52.12 crores (Previous year: ` 70.41 crores) towards likely impact of Covid-19 on restructured and stressed
assets. (Refer note 5.7)

6 BUSINESS RATIOS

Particulars March 31, 2023 March 31, 2022

Interest Income as a percentage to Working Funds (%) 1
8.78 8.51
Non-Interest Income as a percentage to Working Funds (%)1 0.86 1.09
Cost of deposits (%) 6.03 6.05
Net Interest Margin (%)2 3.93 3.56
Operating Profit as a percentage to Working Funds (%) 1,3
1.64 1.93
Return on Assets (%) 4
0.97 0.70
Business per employee (` in crore)5, 6 7.80 8.61
Profit after tax per employee (` in crore) 6
0.05 0.04
1. Working funds have been considered as the average of total monthly assets as reported to the Reserve
Bank of India in Form X under Section 27 of the Banking Regulation Act, 1949 during the financial year.
2. Ratio of Net Interest Income to average earning assets.
3. For the purpose of this ratio, Operating Profit is profit for the year before provisions and contingencies.
4. Assets have been considered as the average of total monthly assets as reported to the Reserve Bank of
India in Form X under Section 27 of the Banking Regulation Act, 1949.
5. For the purpose of this ratio, business has been recorded as deposits (excluding interbank deposits) plus
net advances.
6. For the purpose of this ratio, employees have been considered as the average of the total employees at
the end of each month of the year.

Annual Report 2022-23 | 137

DCB Bank Limited

7 OTHER FIXED ASSETS (including furniture and fixtures)

The movement in fixed assets capitalized as software is given below:

(` in crore)
Particulars March 31, 2023 March 31, 2022
Cost
As at March 31 of the preceding year 146.78 136.26
Additions during the year 26.11 10.52
Deductions during the year (0.11) -
Total (a) 172.78 146.78
Depreciation
As at March 31 of the preceding year 98.27 85.55
Charge for the year 16.41 12.72
On deductions during the year - -
Total (b) 114.68 98.27
Net value as at March 31 of the current year (a-b) 58.10 48.51

8 ASSET LIABILITY MANAGEMENT

8.1 Maturity pattern of certain items of assets and liabilities as at March 31, 2023

(` in crore)
Maturity Buckets Loans and Investments #
Deposits Borrowings Foreign Foreign
Advances Currency Currency
Assets@ Liabilities
Day 1 194.60 3,217.87 227.72 - 57.20 11.96
2 to 7 days 721.30 23.67 907.21 25.00 275.22 1.22
8 to 14 days 512.24 - 986.13 4.25 0.28 1.51
15 to 30 days 478.87 124.01 846.70 121.50 2.64 0.35
31 days to 2 months 627.99 1,146.12 1,713.33 19.08 20.78 4.97
Over 2 months & upto 3 months 1,374.67 70.00 1,555.40 104.08 27.35 1.25
Over 3 months & upto 6 months 2,128.61 - 3,825.59 385.98 46.44 35.41
Over 6 months & upto 1 year 2,104.05 2,718.63 8,198.70 674.04 120.11 65.77
Over 1 year & upto 3 years 10,176.95 4,943.78 21,763.54 2,147.63 - 247.10
Over 3 years & upto 5 years 3,894.22 202.46 729.39 636.56 - 2.24
Over 5 years 12,167.24 135.92 485.20 - 8.01 -
Total 34,380.74 12,582.46 41,238.91 4,118.12 558.03 371.78
@ excludes foreign currency bills discounted as they are booked in Indian Rupees.
# The amounts placed in repo, SDF and LAF lending for overnight placement of surplus liquidity do not form part of the
investments numbers mentioned above.

138 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Maturity pattern of certain items of assets and liabilities as at March 31, 2022

(` in crore)
Maturity Buckets Loans and Investments #
Deposits Borrowings Foreign Foreign
Advances Currency Currency
Assets@ Liabilities
Day 1 80.02 2,039.29 275.95 - 45.63 13.84
2 to 7 days 546.93 74.30 801.25 55.00 419.22 5.30
8 to 14 days 397.61 - 891.30 2.86 - 2.24
15 to 30 days 512.96 62.03 860.29 10.50 265.27 1.71
31 days to 2 months 958.84 558.24 1,879.05 17.69 6.14 1.83
Over 2 months & upto 3 months 896.96 - 1,834.31 245.36 72.21 19.10
Over 3 months & upto 6 months 1,137.49 321.00 3,617.25 360.56 22.17 44.55
Over 6 months & upto 1 year 2,218.00 2,253.35 7,689.45 1,039.86 - 89.16
Over 1 year & upto 3 years 10,515.80 3,397.77 15,511.18 1,676.26 - 47.24
Over 3 years & upto 5 years 2,895.41 212.00 894.28 673.75 - 7.43
Over 5 years 8,935.76 132.67 437.38 - 7.39 -
Total 29,095.78 9,050.65 34,691.69 4,081.84 838.03 232.40
@ excludes foreign currency bills discounted as they are booked in Indian Rupees.
# The amounts placed in repo and LAF lending for overnight placement of surplus liquidity do not form part of the investments
numbers mentioned above.

Classification of assets and liabilities under the different maturity buckets is based on the same estimates and
assumptions as used by the Bank for compiling the return submitted to the RBI, which has been relied upon by
the auditors.

Annual Report 2022-23 | 139

 8.2 Liquidity Coverage Ratio (LCR)

(A) Quantitative Disclosures

Financial Year 2022-23

(` in crore)
Q1 FY 2022-23 Q2 FY 2022-23 Q3 FY 2022-23 Q4 FY 2022-23
Total Total Total Total Total Total Total Total
DCB Bank Limited

Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted

Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets

140 | Annual Report 2022-23

1 Total High Quality Liquid Assets (HQLA) 9,301.83 9,023.04 9,191.31 10,011.39
Cash Outflows
2 Retail deposits and deposits from small business 22,912.90 1,932.57 23,574.31 1,996.23 24,326.66 2,064.47 25,727.36 2,185.91
customers, of which:
(i) Stable Deposits 7,174.40 358.72 7,224.00 361.20 7,363.85 368.19 7,736.57 386.83
(ii) Less Stable Deposits 15,738.50 1,573.85 16,350.31 1,635.03 16,962.81 1,696.28 17,990.79 1,799.08
3 Unsecured wholesale funding, of which: 7,559.38 4,708.46 7,691.34 4,572.52 8,205.88 5,065.98 8,871.21 5,581.56
(i) Operational deposits (all counterparties) - - - - - - - -
(ii) Non-operational deposits (all counterparties) 4,751.54 1,900.62 5,198.04 2,079.22 5,233.17 2,093.27 5,482.75 2,193.10
(iii) Unsecured debt 2,807.84 2,807.84 2,493.30 2,493.30 2,972.71 2,972.71 3,388.46 3,388.46
4 Secured wholesale funding 0.00 0.00 0.00 0.00
5 Additional requirements, of which 5,866.95 2,245.03 7,269.27 3,425.76 6,789.50 3,295.24 6,551.02 2,821.85
(i) Outflows related to derivative exposures and other 1,841.63 1,841.63 3,006.33 3,006.33 2,901.55 2,901.55 2,428.50 2,428.50
collateral requirements
(ii) Outflows related to loss of funding on debt products 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Credit and liquidity facilities 4,025.32 403.40 4,262.94 419.43 3,887.95 393.69 4,122.52 393.35
6 Other contractual funding obligations 667.66 667.66 613.90 613.90 795.55 795.55 652.76 652.76
7 Other contingent funding obligations 2,067.94 74.90 1,665.46 56.21 1,609.92 53.01 1,652.59 54.39
8 Total Cash Outflows 9,628.62 10,664.62 11,274.25 11,296.47
Cash Inflows
9 Secured lending (e.g. reverse repos) 973.62 0.00 133.27 0.00 1.51 0.00 87.06 0.00
10 Inflows from fully performing exposures 1,583.82 1,275.29 1,427.19 1,134.31 1,477.23 1,152.50 1,502.61 1,119.80
11 Other cash inflows 2,107.67 1,890.14 3,266.17 3,054.53 3,210.78 2,976.00 2,680.14 2,474.44
12 Total Cash Inflows 4,665.11 3,165.43 4,826.63 4,188.84 4,689.52 4,128.50 4,269.81 3,594.24

Total Total Total Total

Adjusted Adjusted Adjusted Adjusted
Value Value Value Value
TOTAL HQLA 9,301.83 9,023.04 9,191.31 10,011.39
Total Net Cash Outflows 6,463.19 6,475.78 7,145.75 7,702.23
Liquidity Coverage Ratio (%) 143.92% 139.33% 128.63% 129.98%
In computing the above information, certain estimates/assumptions have been made by the Bank’s management which have been relied upon by the auditors.
 Financial Year 2021-22
(` in crore)
Q1 FY 2021-22 Q2 FY 2021-22 Q3 FY 2021-22 Q4 FY 2021-22
Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets (HQLA) 8,543.29 9,017.69 8,734.06 8,353.47
Cash Outflows
2 Retail deposits and deposits from small business 20,459.90 1,700.04 21,045.95 1,755.14 21,464.73 1,795.17 22,236.42 1,869.83
customers, of which:
(i) Stable Deposits 6,919.12 345.96 6,989.13 349.46 7,026.17 351.31 7,076.35 353.82
(ii) Less Stable Deposits 13,540.78 1,354.08 14,056.82 1,405.68 14,438.56 1,443.86 15,160.07 1,516.01
3 Unsecured wholesale funding, of which: 6,724.40 4,284.51 7,212.35 4,700.95 6,982.11 4,593.82 7,321.35 4,768.14
(i) Operational deposits (all counterparties) - - - - - - - -
(ii) Non-operational deposits (all counterparties) 4,066.49 1,626.60 4,185.67 1,674.27 3,980.48 1,592.19 4,255.35 1,702.14
(iii) Unsecured debt 2,657.91 2,657.91 3,026.68 3,026.68 3,001.63 3,001.63 3,066.00 3,066.00
4 Secured wholesale funding 0.00 0.00 0.00 0.00
5 Additional requirements, of which 4,385.20 1,112.15 4,531.92 1,083.94 4,522.55 1,216.25 4,959.52 1,475.40
(i) Outflows related to derivative exposures and other 879.86 879.86 808.20 808.20 875.07 875.07 1,103.80 1,103.80
collateral requirements
(ii) Outflows related to loss of funding on debt products 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Credit and liquidity facilities 3,505.34 232.29 3,723.72 275.74 3,647.48 341.18 3,855.72 371.60
6 Other contractual funding obligations 742.41 742.41 675.37 675.37 910.75 910.75 586.05 586.05
7 Other contingent funding obligations 2,475.79 96.52 1,593.38 52.52 1,721.18 58.96 1,828.83 63.90
8 Total Cash Outflows 7,935.63 8,267.92 8,574.95 8,763.32
Cash Inflows
9 Secured lending (e.g. reverse repos) 1,261.86 0.00 1,619.61 0.00 1,407.16 0.00 1,222.30 0.00
10 Inflows from fully performing exposures 682.50 635.26 662.82 622.62 732.69 628.46 1,263.23 974.79
11 Other cash inflows 1,220.47 963.77 1,170.43 882.51 1,248.79 966.78 1,339.64 1,123.50
12 Total Cash Inflows 3,164.83 1,599.03 3,452.86 1,505.13 3,388.64 1,595.24 3,825.17 2,098.29

Total Total Total Total

Adjusted Adjusted Adjusted Adjusted
Value Value Value Value
TOTAL HQLA 8,543.29 9,017.69 8,734.06 8,353.47
Total Net Cash Outflows 6,336.60 6,762.79 6,979.71 6,665.03
Liquidity Coverage Ratio (%) 134.82% 133.34% 125.13% 125.33%
In computing the above information, certain estimates/assumptions have been made by the Bank’s management which have been relied upon by the auditors.
Corporate Overview Management Reports Financial Statements

Annual Report 2022-23 | 141

DCB Bank Limited

(B) Qualitative Disclosures

The Bank maintains Liquidity Coverage Ratio (LCR) which is a ratio of High-Quality Liquid Assets (HQLA) to
Expected Net Cash Outflow over the next 30 calendar days, as per the RBI guidelines. Banks, in India, are required
to meet the minimum required level of 100% LCR.

The LCR is being computed and monitored on daily simple average basis. The objective of the LCR is to ensure
that the Bank maintains an adequate level of unencumbered HQLAs that can be converted into cash to meet its
liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario specified
by supervisors. Further at a minimum, the stock of liquid assets should enable the Bank to survive until day 30 of
the stress scenario, by which time it is assumed that appropriate corrective actions can be taken.

The numerator, High Quality Liquid Assets comprises mainly of excess SLR securities, cash, excess CRR balances,
Marginal Standing Facility (‘MSF’) to the extent of 2 per cent with effect from January 01, 2022 of Net Demand
and Time Liabilities (‘NDTL’) as guided by the RBI Circular and Facility to Avail Liquidity for Liquidity Coverage
Ratio (‘FALLCR’) up to 15 per cent of NDTL till April 17, 2022 and 16 per cent of NDTL thereafter, as guided by the
RBI Circular dated April 18, 2022. The denominator i.e. cash outflow over next 30 days comprises mainly of the
deposit maturities and other cash outflows net of cash inflows in next 30 day period. As a part of its strategy to
manage the liquidity requirements, the Bank has been consistently investing in SLR securities of about 2% to 5%
of its NDTL, over and above the regulatory SLR requirement.

HQLA of the Bank comprises of mainly Level-1 assets as per the RBI guidelines i.e. government securities apart
from cash, Standing Deposit Facility (SDF) and excess CRR.

The major source of funding for the Bank is deposits from customers. The Bank does not rely on interbank
borrowings. However, long term refinance from SIDBI, NABARD and NHB is availed against eligible loan assets.
Further, the Bank has committed lines of credit from select public and private sector banks.

The Bank does not have any derivative exposure other than the forward contracts entered by the Bank which
does not affect LCR of the Bank significantly.

Apart from computing the LCR in the domestic currency, the Bank is also required to compute LCR in the currency
in which aggregate liabilities denominated in that currency amount to 5 per cent or more of the Bank’s total
liabilities. To comply with the said requirement, the Bank computes the LCR in USD as the dollar denominated
liabilities are more than 5% of the Bank’s total liabilities. During the financial year 2022-23, the cash inflows in next
30 days denominated in the USD were usually higher than the cash outflows in next 30 days denominated in USD.

The liquidity management of the Bank is centralized at Treasury. Treasury Front Office shall, depending upon the
expected outflows and inflows for the day, decide to borrow or lend to maintain optimal liquidity. Treasury Back
Office monitors the expected inflows and outflows by way of maintaining a register which records the expected
outflows and inflows that are informed in advance by the branches as well as by Treasury Front Office before
making any investment. For this purpose, branches are required to inform the Treasury Back Office in advance
of any expected large flows above ` 5 crore. Also, Treasury Back Office takes into account the deposits that
are scheduled to mature in order to arrive at the expected cash outflows for that particular day. As a part of
effective liquidity management, the Bank always maintains excess SLR securities which can be pledged to meet
the shortfall in intraday liquidity, if any.

142 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

8.3 Net Stable Funding Ratio (NSFR)

(A) Quantitative Disclosures

Financial Year 2022-23

(` in crore)
Net Stable Funding Ratio (NSFR)
As on June 30, 2022 As on September 30, 2022
Unweighted value by residual maturity Weighted Unweighted value by residual maturity Weighted
No <6 6 months ≥ 1yr value No < 6 months 6 months ≥ 1yr value
maturity months to < 1yr maturity to < 1yr
ASF Item
1 Capital: (2+3) 4,156.12 300.00 150.00 - 4,156.12 4,167.96 450.00 - - 4,167.96
2 Regulatory capital 3,850.59 - - - 3,850.59 3,851.32 - - - 3,851.32
3 Other capital instruments 305.53 300.00 150.00 - 305.53 316.64 450.00 - - 316.64
4 Retail deposits and deposits from 8,821.74 4,580.56 3,054.76 7,228.62 22,294.64 9,704.42 3,928.47 2,778.71 7,856.98 22,877.95
small business customers: (5+6)
5 Stable deposits 3,100.66 1,200.72 791.71 2,068.25 6,906.69 3,304.01 1,012.01 694.79 2,239.57 6,999.84
6 Less stable deposits 5,721.08 3,379.84 2,263.05 5,160.37 15,387.95 6,400.41 2,916.45 2,083.92 5,617.41 15,878.11
7 Wholesale funding: (8+9) 1,067.45 5,152.26 5,163.90 3,561.17 7,871.34 1,048.69 6,617.14 4,697.00 3,393.57 7,888.23
8 Operational deposits - - - - - - - - - -
9 Other wholesale funding 1,067.45 5,152.26 5,163.90 3,561.17 7,871.34 1,048.69 6,617.14 4,697.00 3,393.57 7,888.23
10 Other liabilities: (11+12) 332.70 1,240.11 4,269.15 172.32 96.82 402.67 1,370.21 4,895.58 182.82 107.36
11 NSFR derivative liabilities 4.37 -
12 All other liabilities and equity not 332.70 1,240.11 4,264.78 172.32 96.82 402.67 1,370.21 4,895.58 182.82 107.36
included in the above categories
13 Total ASF (1+4+7+10) 34,418.92 35,041.50

RSF Item
14 Total NSFR high-quality liquid 410.55 444.37
assets (HQLA)
15 Deposits held at other financial 53.38 - - - 26.69 42.06 - - - 21.03
institutions for operational purposes
16 Performing loans and securities: - 2,093.49 2,080.19 25,301.10 22,337.89 - 1,984.55 1,876.23 27,000.84 23,662.92
(17+18+19+21+23)
17 Performing loans to financial - - - - - - - - - -
institutions secured by Level 1 HQLA
18 Performing loans to financial - 581.92 97.24 909.88 1,045.79 - 253.66 232.57 896.07 1,050.41
institutions secured by non-Level 1
HQLA and unsecured performing
loans to financial institutions
19 Performing loans to non- financial - 1,511.57 1,982.95 18,972.16 17,683.92 - 1,730.89 1,643.66 20,125.07 18,637.06
corporate clients, loans to retail and
small business customers, and loans
to sovereigns, central banks and
PSEs, of which:
20 With a risk weight of less than or - - - 948.38 616.45 - - - 782.62 508.71
equal to 35% under the Basel II
Standardised Approach for credit
risk
21 Performing residential mortgages, - - - 4,990.10 3,243.56 - - - 5,536.45 3,598.69
of which:
22 With a risk weight of less than or - - - 4,990.10 3,243.56 - - - 5,536.45 3,598.69
equal to 35% under the Basel II
Standardised Approach for credit risk
23 Securities that are not in default and - - - 428.96 364.62 - - - 443.25 376.76
do not qualify as HQLA, including
exchange-traded equities
24 Other assets: (sum of rows 25 to 29) - 380.62 4,079.17 4,880.35 5,008.00 - 137.11 4,803.50 4,731.90 4,899.57
25 Physical traded commodities, - - - - - - - - - -
including gold
26 Assets posted as initial margin for 134.86 114.63 135.70 115.35
derivative contracts and contributions
to default funds of CCPs
27 NSFR derivative assets 0.00 - - 0.56 0.56
28 NSFR derivative liabilities before 0.77 0.77 - 0.84 0.84
deduction of variation margin
posted
29 All other assets not included in the - 244.99 4,079.17 4,880.35 4,892.60 - - 4,803.50 4,731.90 4,782.82
above categories
30 Off-balance sheet items - - - 6,519.86 298.33 - - - 5,621.08 253.46
31 Total RSF (14+15+16+24+30) - - - - 28,081.45 - - - - 29,281.35
32 Net Stable Funding Ratio (%) 122.57% 119.67%

Annual Report 2022-23 | 143

DCB Bank Limited

(` in crore)
Net Stable Funding Ratio (NSFR)
As on December 31, 2022 As on March 31, 2023
Unweighted value by residual maturity Weighted Unweighted value by residual maturity Weighted
No <6 6 months ≥ 1yr value No < 6 months 6 months ≥ 1yr value
maturity months to < 1yr maturity to < 1yr
ASF Item
1 Capital: (2+3) 4,216.76 150.00 - - 4,216.76 4,653.28 - - 300.00 4,953.28
2 Regulatory capital 3,886.72 - - - 3,886.72 4,653.28 - - 300.00 4,953.28
3 Other capital instruments 330.04 150.00 - - 330.04 - - - - -
4 Retail deposits and deposits from 9,878.49 3,391.19 3,017.67 9,406.19 24,313.01 9,664.74 2,946.16 3,176.31 10,981.62 25,438.60
small business customers: (5+6)
5 Stable deposits 3,382.04 821.84 760.24 2,583.53 7,299.45 3,450.01 697.35 822.58 2,987.45 7,708.89
6 Less stable deposits 6,496.45 2,569.35 2,257.43 6,822.66 17,013.56 6,214.73 2,248.81 2,353.73 7,994.17 17,729.71
7 Wholesale funding: (8+9) 941.66 6,910.84 5,367.87 4,267.24 8,955.16 1,140.92 6,304.00 5,791.06 5,052.24 9,894.51
8 Operational deposits - - - - - - - - - -
9 Other wholesale funding 941.66 6,910.84 5,367.87 4,267.24 8,955.16 1,140.92 6,304.00 5,791.06 5,052.24 9,894.51
10 Other liabilities: (11+12) 541.40 1,390.58 2,692.99 193.14 120.46 239.39 1,642.79 3,668.36 244.23 172.51
11 NSFR derivative liabilities 1.32 0.68
12 All other liabilities and equity not 541.40 1,390.58 2,691.67 193.14 120.46 239.39 1,642.79 3,667.68 244.23 172.51
included in the above categories
13 Total ASF (1+4+7+10) 37,605.39 40,458.90

RSF Item
14 Total NSFR high-quality liquid 449.88 488.26
assets (HQLA)
15 Deposits held at other financial 55.19 - - - 27.59 62.63 - - - 31.32
institutions for operational purposes
16 Performing loans and securities: - 2,676.21 2,603.26 28,279.02 25,129.63 - 2,233.31 3,573.90 29,922.58 26,803.87
(17+18+19+21+23)
17 Performing loans to financial - - - - - - - - - -
institutions secured by Level 1 HQLA
18 Performing loans to financial - 884.48 180.27 734.41 957.21 518.10 191.01 769.10 942.32
institutions secured by non-Level 1
HQLA and unsecured performing
loans to financial institutions
19 Performing loans to non- financial - 1,791.73 2,422.99 20,843.66 19,681.83 1,715.21 3,382.89 21,300.10 20,532.07
corporate clients, loans to retail and
small business customers, and loans
to sovereigns, central banks and
PSEs, of which:
20 With a risk weight of less than or - - - 713.21 463.58 - - - 610.36 396.74
equal to 35% under the Basel II
Standardised Approach for credit
risk
21 Performing residential mortgages, - - - 6,026.06 3,916.94 - - - 6,729.46 4,374.15
of which:
22 With a risk weight of less than or - - - 6,026.06 3,916.94 - - - 6,729.46 4,374.15
equal to 35% under the Basel II
Standardised Approach for credit risk
23 Securities that are not in default and - - - 674.89 573.65 1,123.92 955.33
do not qualify as HQLA, including
exchange-traded equities
24 Other assets: (sum of rows 25 to 29) - 135.96 2,638.94 4,719.73 4,886.27 - 237.72 3,481.63 4,621.02 4,741.68
25 Physical traded commodities, - - - - - - - - - -
including gold
26 Assets posted as initial margin for 135.55 115.21 135.38 115.07
derivative contracts and contributions
to default funds of CCPs
27 NSFR derivative assets 0.00 - 0.00 -
28 NSFR derivative liabilities before 0.41 0.41 0.50 0.50
deduction of variation margin
posted
29 All other assets not included in the - - 2,638.94 4,719.73 4,770.65 101.84 3,481.63 4,621.02 4,626.11
above categories
30 Off-balance sheet items - - - 5,345.18 239.13 5,856.90 264.23
31 Total RSF (14+15+16+24+30) 30,732.50 32,329.36
32 Net Stable Funding Ratio (%) 122.36% 125.15%

144 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Financial Year 2021-22

(` in crore)
Net Stable Funding Ratio (NSFR)
As on December 31, 2021 As on March 31, 2022
Unweighted value by residual maturity Weighted Unweighted value by residual maturity Weighted
No <6 6 months ≥ 1yr value No < 6 months 6 months ≥ 1yr value
maturity months to < 1yr maturity to < 1yr
ASF Item
1 Capital: (2+3) 3,881.52 - 300.00 150.00 4,031.52 4,149.61 - 450.00 - 4,149.61
2 Regulatory capital 3,591.06 - - - 3,591.06 3,850.45 - - - 3,850.45
3 Other capital instruments 290.46 - 300.00 150.00 440.46 299.16 - 450.00 - 299.16
4 Retail deposits and deposits from 7,058.50 3,554.74 4,094.21 7,160.76 20,635.33 7,987.64 4,463.78 3,570.16 7,010.57 21,690.73
small business customers: (5+6)
5 Stable deposits 2,647.19 966.47 1,143.73 2,121.38 6,640.90 3,029.30 1,230.80 954.56 1,979.19 6,933.12
6 Less stable deposits 4,411.31 2,588.27 2,950.47 5,039.38 13,994.43 4,958.34 3,232.98 2,615.60 5,031.38 14,757.61
7 Wholesale funding: (8+9) 1,164.53 6,074.88 3,024.03 2,857.58 6,160.68 1,157.98 5,102.32 4,749.65 4,281.43 8,250.63
8 Operational deposits - - - - - - - - - -
9 Other wholesale funding 1,164.53 6,074.88 3,024.03 2,857.58 6,160.68 1,157.98 5,102.32 4,749.65 4,281.43 8,250.63
10 Other liabilities: (11+12) 419.86 1,051.72 1,259.69 186.94 162.95 267.72 1,274.03 1,977.54 183.13 108.48
11 NSFR derivative liabilities - -
12 All other liabilities and equity not 419.86 1,051.72 1,259.69 186.94 162.95 267.72 1,274.03 1,977.54 183.13 108.48
included in the above categories
13 Total ASF (1+4+7+10) 30,990.48 34,199.45

RSF Item
14 Total NSFR high-quality liquid 354.37 375.68
assets (HQLA)
15 Deposits held at other financial 45.63 - - - 22.81 52.43 - - - 26.21
institutions for operational purposes
16 Performing loans and securities: - 2,300.43 797.03 23,755.17 20,848.56 - 2,609.67 1,958.29 24,543.29 22,009.23
(17+18+19+21+23)
17 Performing loans to financial - - - - - - - - - -
institutions secured by Level 1 HQLA
18 Performing loans to financial - 491.50 63.08 754.28 859.54 - 932.68 48.04 753.16 917.09
institutions secured by non-Level 1
HQLA and unsecured performing
loans to financial institutions
19 Performing loans to non- financial - 1,808.93 733.95 18,274.32 16,804.62 - 1,676.99 1,910.25 18,609.48 17,611.67
corporate clients, loans to retail and
small business customers, and loans
to sovereigns, central banks and
PSEs, of which:
20 With a risk weight of less than or - - - - - - - - - -
equal to 35% under the Basel II
Standardised Approach for credit
risk
21 Performing residential mortgages, - - - 4,165.91 2,707.84 - - - 4,615.42 3,000.02
of which:
22 With a risk weight of less than or - - - 4,165.91 2,707.84 - - - 4,615.42 3,000.02
equal to 35% under the Basel II
Standardised Approach for credit risk
23 Securities that are not in default and - - - 560.66 476.56 - - - 565.23 480.45
do not qualify as HQLA, including
exchange-traded equities
24 Other assets: (sum of rows 25 to 29) - 83.73 1,415.13 4,917.62 4,989.02 - 88.02 1,828.27 5,058.65 5,133.92
25 Physical traded commodities, - - - - - - - - - -
including gold
26 Assets posted as initial margin for 82.22 69.89 - 85.02 72.27
derivative contracts and contributions
to default funds of CCPs
27 NSFR derivative assets 1.07 1.07 - 2.80 2.80
28 NSFR derivative liabilities before 0.45 0.45 - 0.20 0.20
deduction of variation margin
posted
29 All other assets not included in the - - 1,415.13 4,917.62 4,917.61 - - 1,828.27 5,058.65 5,058.65
above categories
30 Off-balance sheet items - - - 5,930.20 268.79 - - - 7,049.79 324.30
31 Total RSF (14+15+16+24+30) - - - - 26,483.55 - - - - 27,869.34
32 Net Stable Funding Ratio (%) 117.02% 122.71%

In computing the above information, certain estimates/assumptions have been made by the Bank’s management which have been relied upon by the auditors.

Annual Report 2022-23 | 145

DCB Bank Limited

(B) Qualitative Disclosures

Pursuant to the RBI guidelines on NSFR dated May 17, 2018, the Bank has adopted and complied with the Basel III
standards pertaining to NSFR from October 01, 2021. NSFR aims to improve the resilience of banks by promoting
long-term funding stability. It mandates banks to maintain a stable funding profile vis-à-vis the composition of
their assets and off-balance sheet activities. It reduces the probability of erosion of a bank’s liquidity position
due to disruptions to its regular sources of funding. The NSFR guidelines of RBI stipulate the applicable Required
Stable Funding (“RSF”) factor for each category of asset and Available Stable Funding (“ASF”) factor for each
type of funding source. NSFR represents the ratio of the bank’s ASF to RSF. The breakdown of the bank’s ASF and
RSF amounts after applying the respective ASF or RSF factors are provided in the “weighted amount” column of
the NSFR disclosure format.

The Available Stable Funding (ASF) is primarily driven by the total regulatory capital as per Basle III Capital
Adequacy guidelines stipulated by RBI and deposits from retail customers, small business customers and non-
financial corporate customers. Under the Required Stable Funding (RSF), the primary drivers are unencumbered
performing loans with residual maturities of one year or more, excluding loans to financial institutions.

9 CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs

9.1 Concentration of Deposits

(` in crore)
Particulars March 31, 2023 March 31, 2022
Total deposits of twenty largest depositors* 2,869.83 2,189.98
Percentage of deposits of twenty largest depositors to total 6.96% 6.31%
deposits of the Bank
*Excludes holders of Certificates of Deposits.

9.2 Concentration of Advances

(` in crore)
Particulars March 31, 2023 March 31, 2022
Total advances to twenty largest borrowers 1,679.22 1,717.77
Percentage of Advances to twenty largest borrowers to total 4.29% 5.03%
advances of the bank
Note: Advances reported above include both funded and non-funded loan exposure with limits or outstanding whichever is
higher, for other than fully drawn term loans and NPAs. In case of fully drawn term loans and NPAs, the outstanding amount
has been considered for this purpose. The Advances figure above also includes non-inter bank credit exposure on derivatives
including forward exchange contracts.

9.3 Concentration of Exposures

(` in crore)
Particulars March 31, 2023 March 31, 2022
Total Exposures to twenty largest borrowers / customers 2,579.80 1,978.81
Percentage of Exposures to twenty largest borrowers / Customers 6.17% 5.55%
to Total Exposures of the bank on borrowers / Customers
Note: Exposures reported above include both funded and non-funded exposures [including advances and investments (other
than SLR Investments)] with limits or outstanding whichever is higher, for other than fully drawn term loans and NPAs. In case of
fully drawn term loan and NPAs, the outstanding amount has been considered for this purpose. The exposure figure above also
includes non-inter bank credit exposure on derivatives including forward exchange contracts.

146 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

9.4 Concentration of NPAs

(` in crore)
Particulars March 31, 2023 March 31, 2022
Total Exposure to top twenty NPA accounts 262.03 161.30
Percentage of exposures to the twenty largest NPA exposure to 23.34% 12.50%
total Gross NPAs.
Notes:
1. NPAs are taken on gross basis.
2. Fund based exposures identified as NPAs.

9.5 Off-Balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms) as on
March 31, 2023 and March 31, 2022
Name of the SPV sponsored
Domestic Overseas
NIL NIL

10 EXPOSURES

10.1 Exposure to the Real Estate Sector

(` in crore)
Category March 31, 2023 March 31, 2022
a) Direct Exposure
(i) Residential Mortgages(*) 8,760.33 6,412.94
Lending fully secured by mortgages on residential property
that is or will be occupied by the borrower or that is rented:
(*) Includes Individual housing loans eligible for inclusion in
priority sector advances – ` 3,749.56 crore (Previous year:
` 3,135.36 crore)
(ii) Commercial Real Estate 2,558.40 1,930.18
Lending secured by mortgages on commercial real estates
(office buildings, retail space, multi-purpose commercial
premises, multi-family residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, hotels,
land acquisition, development and construction, etc.)
(iii) Investments in Mortgage Backed Securities (MBS) and
other securitized exposures –
(a) Residential - -
(b) Commercial Real Estate - -
b) Indirect Exposure
Fund based and non-fund based exposures on National 726.89 650.83
Housing Bank (NHB) and Housing Finance Companies (HFCs).
Total Exposure to the Real Estate Sector 12,045.62 8,993.95

Annual Report 2022-23 | 147

DCB Bank Limited

10.2 Exposure to the Capital Market

(` in crore)
Particulars March 31, 2023 March 31 ,2022
i. Direct investment in equity shares, convertible bonds, 28.60 28.60
convertible debentures and units of equity-oriented mutual
funds the corpus of which is not exclusively invested in
corporate debt;
ii. Advances against shares/bonds/ debentures or other - -
securities or on clean basis to individuals for investment in
shares (including IPOs/ESOPs), convertible bonds, convertible
debentures, and units of equity-oriented mutual funds;
iii. Advances for any other purposes where shares or convertible 0.60 1.14
bonds or convertible debentures or units of equity oriented
mutual funds are taken as primary security;
iv. Advances for any other purposes to the extent secured by the - -
collateral security of shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds i.e. where
the primary security other than shares/convertible bonds/
convertible debentures/units of equity oriented mutual funds
does not fully cover the advances;
v. Secured and unsecured advances to stockbrokers and 189.89 355.15
guarantees issued on behalf of stockbrokers and market
makers;
vi. Loans sanctioned to corporates against the security of shares - -
/ bonds/debentures or other securities or on clean basis
for meeting promoter’s contribution to the equity of new
companies in anticipation of raising resources;
vii. Bridge loans to companies against expected equity flows/ - -
issues;
viii. Underwriting commitments taken up by the banks in respect - -
of primary issue of shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds;
ix. Financing to stockbrokers for margin trading; - -
x. All exposures to Venture Capital Funds (both registered and - -
unregistered)
Total Exposure to the Capital Market 219.09 384.89

148 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

10.3 Risk category-wise country exposure

(` in crore)
Risk Category Exposure (net) as Provision held as at Exposure (net) as Provision held as at
at March 31, 2023 March 31, 2023 at March 31, 2022 March 31, 2022
Insignificant 156.31 - 551.85 -
Low 208.73 - 228.95 -
Moderate Low - - 3.31 -
Moderate - - - -
Moderate High 0.88 - - -
High - - - -
Very High - - - -
Total 365.92 - 784.11 -

10.4 Details of Large Exposures Framework limits exceeded by the Bank

As per regulatory guidelines, with effect from April 1, 2019 in case of single counterparty, the sum of all the
exposure values of a bank to a single counterparty must not be higher than 20 percent of the bank’s available
eligible capital base at all times. In exceptional cases, Board of bank may allow an additional 5 percent exposure
of the bank’s available eligible capital base. In case of group of connected counterparties, the sum of all the
exposure values of a bank to a group of connected counterparties must not be higher than 25 percent of the
bank’s available eligible capital base at all times.

The eligible capital base for this purpose is the effective amount of Tier 1 capital fulfilling the criteria defined in
Master Circular on Basel III – Capital Regulation /Master Direction on ‘Basel III Capital Regulations’ as per the last
audited balance sheet.

During the years ended March 31, 2023 and March 31, 2022, the Bank has not exceeded the prudential exposure
limits as laid down by the RBI guidelines under Large Exposure Framework.

10.5 Intra Group Exposure

(` in crore)
Particulars March 31, 2023 March 31, 2022
Total amount of intra-group exposure NIL NIL
Total amount of top-20 intra-group exposure NIL NIL
Percentage of intra group exposure to total exposure of the Bank NIL NIL
on borrower/ customer
Details of breach of limit on intra group exposure and regulatory NIL NIL
action thereon, if any

10.6 Unsecured Advances

Details of advances included in Schedule 9 where intangibles like rights, licenses, authority, etc. are charged to the
Bank as collateral:
(` in crore)
Particulars March 31, 2023 March 31, 2022
Total unsecured gross advances of the Bank 1,978.48 1,429.90
Out of the above, amount of advances for which intangible securities NIL NIL
such as charge over the rights, licenses, authority, etc. have been taken
Estimated value of such intangible securities NIL NIL

Annual Report 2022-23 | 149

DCB Bank Limited

10.7 Factoring Business

The outstanding receivables acquired by the Bank under factoring business were ` 681.13 crore as at March 31,
2023 (Previous year: ` 450.49 crore).

10.8 Unhedged Foreign Currency Exposure (UFCE)

In accordance with the RBI guidelines on banks’ exposures to entities with Unhedged Foreign Currency Exposure
(‘UFCE’), the Bank has put in place a mechanism to seek information from its borrowers and to evaluate the
currency induced credit risk. In the case of listed entities, the Bank obtains information relating to unhedged
positions based on the latest available audited / reviewed financial statements; whilst in the case of unlisted /
private companies, the Bank obtains the aforesaid information based on the latest available audited financial
statements (not exceeding a financial year) so as to estimate the extent of likely loss and to provide for
incremental capital or to recognize incremental provision in accordance with the aforesaid guidelines. Further, as
per the above-mentioned guidelines, the Bank obtains audited and certified UFCE information from the statutory
auditors of the borrowers on an annual basis. In the case of smaller entities i.e. entities with exposure to banking
industry of less than ` 25 crore and as identified by the Bank as having any foreign exchange exposure, the Bank
recognizes an incremental provision at 10 basis points on all such exposures.

The incremental provisions and capital held by the Bank towards this risk, included in the Bank’s financials are as
under:
(` in crore)
Particulars March 31, 2023 March 31, 2022
Provisioning Requirement for UFCE 2.75 2.75
Risk weight on account of UFCE 15.20 49.65
Capital Requirement at 9% 1.37 4.47

11 COMPLIANCE WITH ACCOUNTING STANDARDS, READ WITH THE RBI GUIDELINES

11.1 Employee Benefits (Accounting Standard 15)

The contribution to Employees’ Provident Fund included under “Payments to and Provisions for Employees” in
Schedule 16 amounted to ` 20.97 crore for the year ended March 31, 2023 (Previous year ` 16.05 crore).

During the year, the Bank has contributed ` 1.17 crores (previous year ` 1.00 crores) to the National Pension
Scheme for employees who had opted for the scheme.

The Bank has a gratuity trust approved by Income Tax Department namely “DCB Bank Limited Staff Gratuity
Fund”. Every employee who has completed 5 years or more of service gets gratuity on separation at half month’s
last drawn salary for each completed year of service, subject to a cap of ` 20.00 lakhs for employees who joined
after April 1, 2006 and without any such limit for other employees.

150 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity
benefits is given below:
(` in crore)
Particulars March 31, 2023 March 31, 2022
Balance Sheet – Details of provision for Gratuity
Defined benefit obligation 30.61 28.26
Fair value of plan Assets 29.34 27.71
Net Assets/(Liabilities) (1.27) (0.55)
Amounts in Balance Sheet
Assets (included in Schedule 11 – Other Assets) - -
Liabilities (included in Schedule 5 – Other Liabilities and Provisions) 1.27 0.55
Change in Defined Benefit Obligations
Obligations at the beginning of the year 28.26 27.07
Interest Cost 1.53 1.48
Current Service Cost 2.82 2.57
Past Service Cost - -
Benefits paid (4.57) (3.82)
Actuarial (gain)/loss on Obligation 2.57 0.96
Present value of obligation at the end of the year 30.61 28.26
Change in the Fair value of Plan Assets
Fair value of plan assets at the beginning of the year 27.71 26.17
Expected Return on plan assets 1.64 1.89
Contributions 4.75 4.00
Benefits paid (4.57) (3.82)
Actuarial gain/(Loss) on plan assets (0.19) (0.53)
Fair value of plan assets at the end of the year 29.34 27.71
Cost for the year
Current service cost 2.82 2.57
Interest cost 1.53 1.48
Expected return on plan assets (1.64) (1.89)
Net Actuarial (gain)/loss recognised in the year 2.76 1.49
Past service cost - -
Expense recognised in “Payments to and Provision for 5.47 3.65
Employees” [Refer Schedule-16 (I)]
Actual return on plan assets 1.45 1.36
Experience Adjustments
On obligation 3.28 1.10
On plan assets (0.19) (0.53)
Assumptions
Discount rate 7.30% p.a. 5.89% p.a.
Expected return on plan assets 7.00% p.a. 7.00% p.a.
Mortality Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2012-14) Ultimate (2012-14) Ultimate
Future salary increases 5.00% p.a. 5.00% p.a.

Annual Report 2022-23 | 151

DCB Bank Limited

Experience adjustments
(` in crore)
Particulars March 31, 2023 March 31, 2022 March 31, 2021 March 31, 2020 March 31, 2019
Plan assets 29.34 27.71 26.17 22.91 19.27
Defined benefit obligation 30.61 28.26 27.07 24.25 19.83
Surplus / (Deficit) (1.27) (0.55) (0.90) (1.34) (0.56)
Experience adjustment (0.19) (0.53) 0.89 0.32 0.16
gain/ (loss) on plan assets
Experience adjustment (gain) 3.28 1.10 0.15 1.67 0.98
/loss on plan liabilities

All the plan assets are invested by the gratuity trust namely “DCB Bank Limited Staff Gratuity Fund” in Government
securities (CY about 53%, PY about 51%), high rated corporate bonds (CY about 32%, PY about 33%), units of
mutual funds/ insurance companies (CY about 7%, PY about 6%) and others (CY about 8%, PY about 10%) set up
as dedicated funds for management of gratuity funds.

Estimated rate of return on plan assets is based on the Bank’s expectation of the average long–term rate of return
expected on investments of the Fund during the estimated term of the obligations.

The contribution expected to be paid to the plan during the annual period beginning after the Balance Sheet date
is ` 3.64 crore (Previous year: ` 9.66 crore).

The estimates of future salary increases, considered in actuarial valuation, takes into account inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

In computing the above information, certain estimates have been made by the Bank’s management which have
been relied upon by the auditors.

11.2 Earnings Per Share (‘EPS’)

The Bank reports basic and diluted earnings per equity share in accordance with AS-20, “Earnings per Share”. The
dilutive impact is due to stock options granted to employees by the Bank.

The computation of earnings per share is given below:-

Particulars March 31, 2023 March 31, 2022
Basic
Net Profit (` in crore) 465.56 287.50
Weighted average number of equity shares outstanding 311,156,253 310,638,511
Basic Earnings per share (`) 14.96 9.26
Diluted
Net Profit (` in crore ) 465.56 287.50
Weighted average number of equity shares outstanding 314,679,498 312,826,393
Diluted Earnings per share (`) 14.79 9.19
Face value per share (`) 10.00 10.00

Dilution of equity is on account of 3,523,245 (Previous year 2,187,882) stock options.

152 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

11.3 Employees’ Stock Option Plan

The Shareholders of the Bank had approved an ESOP plan Phase I in November 2005, enabling the Board
and /or the Nomination Committee to grant such number of equity shares and/or equity linked instruments,
including options of the Bank not exceeding 4% of the Issued Capital or 60,00,000 Equity Shares of the Bank.
The Shareholders, at the Annual General Meeting held on September 11, 2006 had approved an additional 3% of
the Issued Capital, aggregating the total Equity Share Capital reserved for all ESOPs to 7% of the Issued Capital
from time to time. As the shares of the Bank were subsequently listed, confirmation of shareholders was obtained
at the Extraordinary General Meeting held on December 15, 2006 in line with the guidelines of the Securities &
Exchange Board of India. Pursuant thereto, during the year the Nomination and Remuneration Committee of the
Board did not grant any options.

Under the Employees’ Stock Options Plan, options vest in a graded manner over a 5-year period from the date of
grant, the details of which are set out below:

End For Sub Plan 1 For Sub Plan 2

of the Till From From Till From
Year August 16, 2010 August 17, 2010 January 01, 2021 December 31, January 01, 2021
to December 31, 2020
2020
1st - - 33.33% - 33.33%
2nd - 30% 33.33% 30% 33.33%
3rd 40% 30% 33.34% 30% 33.34%
4th 30% 20% - 20% -
5th 30% 20% - 20% -

Method used for accounting for ESOP

RBI, vide its clarification dated August 30, 2021 on Guidelines on Compensation of Whole Time Directors / Chief
Executive Officers / Material Risk Takers and Control Function Staff, advised Banks that the fair value of share-
linked instruments on the date of grant should be recognised as an expense for all instruments granted after the
accounting period ending March 31, 2021. Accordingly, the Bank has valued its stock options granted after March
31, 2021 using the fair value method under its Employee’ Stock Options Plan. The fair value of the stock options is
estimated on the date of grant using Black-Scholes model and is recognised as employee cost over the vesting
period.

Activity in options outstanding under Employees Stock Option Plan.

Particulars March 31, 2023 March 31, 2022

Number Weighted Number Weighted
of Average of Average
options Exercise Price options Exercise Price
Options outstanding at the beginning of the year 8,651,614 67.43 8,275,840 64.46
Granted during the year - - 1,031,524 86.45
Exercised during the year 525,270 54.53 440,350 52.73
Forfeited/Lapsed during the year 205,860 74.61 215,400 74.43
Options outstanding at the end of the year* 7,920,484 68.10 8,651,614 67.43
Options exercisable 6,431,595 66.04 6,077,590 63.21
*Includes NIL (Previous year: 5,000) employee stock options exercised, pending for allotment.

Annual Report 2022-23 | 153

DCB Bank Limited

The weighted average share price in respect of options exercised and allotted during the year ended
March 31, 2023 is ` 109.77 (Previous year ` 77.97).

Summary of stock options outstanding as on March 31, 2023 is given below:

Range of exercise price Number of shares Weighted Weighted average

(Rupees per share) arising out of options average exercise remaining contractual
price (`) life (Number of years)

` 17.00 – ` 24.00 400 20.01 0.77

` 25.00 – ` 109.00 7,396,084 64.39 5.48
` 110.00– ` 200.00 524,000 120.50 5.38
There were 525,270 stock options exercised during the year ended March 31, 2023.
Summary of stock options outstanding as on March 31, 2022 is given below:
Range of exercise price Number of shares Weighted Weighted average
(Rupees per share) arising out of options average exercise remaining contractual
price (`) life (Number of years)
` 17.00 – ` 24.00 700 19.49 1.37
` 25.00 – ` 109.00 8,116,804 63.89 6.90
` 110.00– ` 200.00 534,110 121.41 6.28

There were 440,350 stock options exercised during the year ended March 31, 2022.

Fair value Methodology

The fair value of options used to compute proforma net income and earnings per equity share have been
estimated using the binomial option-pricing model for options granted upto March 31, 2021. The Bank estimated
the volatility based on the historical share prices.

The fair value of the stock options granted after March 31, 2021 is estimated on the date of grant using Black-
Scholes model and is recognised as employee cost over the vesting period. Accordingly, the Bank has recognised
` 1.88 crore during the financial year 2022-23 (Previous year ` 0.42 crore).

There were no options granted during the year ended March 31, 2023.

The various assumptions considered in the pricing model for ESOPs granted during the year ended
March 31, 2022 were:
Particular March 31, 2022
Dividend Yield 1.16%
Expected Volatility 38.85% to 41.32%
Risk Free Interest Rate 5.47% to 6.15%
Expected life of options 3.77 to 5.77 years

The expected volatility was determined based on historical volatility data; historical volatility includes data since listing.

The weighted average fair value of options granted during the year ended March 31, 2022 was ` 33.49.

In computing the above information, certain estimates/assumptions have been made by the Bank’s management
which have been relied upon by the auditors.

154 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Impact of Fair Value Method on Net Profit and EPS

Had the compensation cost for the Bank’s stock option plans on outstanding ESOPs granted upto March 31, 2021
been determined based on the fair value approach, the Bank’s net profit and earnings per share would have been
as per the proforma amounts indicated below:

(` in crore)
Particular March 31, 2023 March 31, 2022
Net Profit (as reported) 465.56 287.50
Add: Stock based compensation expense accounted (0.01) (0.01)
465.55 287.49
Less: Stock based compensation expense determined under fair 0.67 1.26
value based method (proforma)
Net Profit (proforma) 464.88 286.23

Particular March 31, 2023 March 31, 2022

Basic earnings per share (as reported) 14.96 9.26
Basic earnings per share (proforma) 14.94 9.21
Diluted earnings per share (as reported) 14.79 9.19
Diluted earnings per share (proforma) 14.77 9.15

11.4 Introduction of Cash Settled Stock Appreciation Rights (CSARs)

The Bank has adopted CSAR as an instrument under the aegis of the compensation policy. This is in addition to
the ESOP Plan of the Bank. Both the instruments are considered under non-cash components for variable pay in
the Bank. The Board has vide its resolution dated September 17, 2022 approved the Plan envisaging Grant of not
exceeding 10,000,000 CSARs to Employees in one or more tranches, from time to time, with each such CSAR
conferring a right upon the CSAR Grantee to receive Appreciation as per terms of the Plan and grants made
under the Plan.

The maximum number of CSARs that may be granted to an eligible Employee and in aggregate under the Plan
shall vary depending upon the designation, role, criticality and the appraisal process. However, the maximum
number of CSARs granted per employee shall not exceed 3,000,000 CSARs at any time under the Plan.

CSAR granted under the Plan would vest subject to minimum Vesting Period of 1 year but not later than the
maximum Vesting Period of 4 years from the Grant Date of such CSARs. Subject to the minimum and maximum
Vesting Periods stated above and provisions of acceptance of the grant, the Committee shall prescribe the
Vesting schedule of CSARs granted under the Plan. Vesting shall be no faster than on a pro rata basis (i.e. vesting
shall not be front loaded). Additionally, vesting shall not take place more frequently than on a yearly basis.

Annual Report 2022-23 | 155

DCB Bank Limited

Particulars CSAR Plan 2022 (‘The Plan’)

Date of Board Approval September 17, 2022
Total number of units approved under the Plan 10,000,000
Vesting Requirements CSARs shall vest any time after expiry of 1 year from the date
of grant as may be determined in the grant letter
CSAR Grant Series CSARGRANT2022-1
SAR price or pricing formula Appreciation shall be computed by multiplying the total
number of vested CSAR with appreciation per CSAR as per
the grant series subject to cap on appreciation.
Maximum term of SAR granted Vesting period of upto 4.6 years from the grant date
Method of Settlement (cash or equity) Cash
Method used to account for SAR – Intrinsic or Fair value based on Black Scholes
Fair
Number of SARs outstanding at the beginning NIL
of the year
Number of SARs granted during the year 1,170,786

The Bank introduced the CSAR scheme (CSARGRANT2022-1) under the Board approved DCB Bank CSAR Plan
2022 which was approved vide its resolution dated September 17, 2022.

The Board has approved a CSAR grant of 1,170,786 units on October 15, 2022.

Method used for accounting for CSARs

The Bank has valued its CSARs units using the fair value method under its CSAR Plan. The fair value of the CSARs
units is estimated on the date of grant using Black-Scholes model and is recognised as employee cost over the
vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet
date up to and including the vesting date with changes in fair value recognised in the profit and loss account in
‘Payments to and Provision for Employees’.

Fair value Methodology

There were 1,170,786 units granted during the year ended March 31, 2023. The Bank has recognised ` 1.11 crore
during the financial year 2023.

The various assumptions considered in the pricing model for CSARs units granted during the year ended
March 31, 2023 were:

Particular March 31, 2023

Dividend Yield 1.03%
Expected Volatility 35.05% to 42.97%
Risk Free Interest Rate 6.76% to 7.24%
Expected life of units 1.50 to 3.50 years

The weighted average fair value of CSARs units granted during the year ended March 31, 2023 was ` 28.55.

In computing the above information, certain estimates/assumptions have been made by the Bank’s management
which have been relied upon by the auditors.

156 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

11.5 Segment Information

Part A: Business Segments (` in crore)
Business Segments Treasury Operations Corporate / Retail Banking Other Banking Total
Wholesale Banking Operations
Particulars FY 2022- FY 2021- FY 2022- FY 2021- FY 2022- FY 2021- FY 2022- FY 2021- FY 2022- FY 2021-
23 22 23 22 23 22 23 22 23 22
Revenue 1,038.16 918.40 428.17 350.14 3,869.52 3,247.05 57.87 46.00 5,393.72 4,561.59
Unallocated Revenue 2.39 (0.24)
Total Revenue1 5,396.11 4,561.35
Result 69.51 112.69 24.23 4.56 490.12 242.56 57.19 43.63 641.05 403.44
Unallocated Result (13.49) (13.89)
Total 627.56 389.55
Unallocated expenses - -
Operating profit 786.73 796.98
Income taxes (162.00) (102.05)
Extraordinary profit - - - - - - - - - -
/ loss
Net profit 465.56 287.50
Other Information
Segment assets 16,173.79 14,045.37 4,249.14 3,797.23 31,484.94 26,493.55 - - 51,907.87 44,336.15
Unallocated assets 458.00 456.41
Total assets 52,365.87 44,792.56
Segment liabilities 8,374.71 7,577.58 4,039.02 2,811.62 35,383.30 30,352.70 0.01 0.69 47,797.04 40,742.59
Unallocated liabilities2 4,568.83 4,049.97
Total liabilities 52,365.87 44,792.56
Capital Expenditure 0.19 0.17 1.76 1.23 161.06 95.78 - - 163.01 97.18
Unallocable 12.73 7.48
Total Capital 175.74 104.66
Expenditure
Depreciation 1.25 1.16 0.83 0.80 73.08 60.57 - - 75.16 62.53
Unallocable 1.86 1.18
Total Depreciation 77.01 63.71
Non Cash Expenses3 (4.79) 12.47 41.65 66.95 123.96 325.97 - - 160.82 405.39
Unallocable 15.16 12.92
Total Non Cash 175.98 418.31
Expenses

1. Revenue i.e. Total Revenue includes inter-segment revenue of ` 786.45 crore in FY 2022-23 (Previous year ` 596.54
crore). Inter-segment revenue represents the transfer price received from and paid to the treasury unit respectively.
Excluding this, the revenue for the Bank is ` 4,609.66 crore in FY 2022-23 (Previous year: ` 3,964.81 crore).
2. Includes Capital and Reserves.
3. Excluding depreciation and provision for taxes.
4. Income, expense, assets and liabilities have been either specifically identified with individual segment or allocated
to segments on a systematic basis or classified as unallocated.
5. Inter-segment transactions have been generally based on transfer pricing measures as determined by the
Management.
6. The RBI vide its circular dated April 07, 2022 on establishment of Digital Banking Units (DBUs), has prescribed
reporting of Digital Banking Segment as a sub-segment of Retail Banking Segment. The Bank does not have any
DBUs, hence no Digital Banking Segment disclosures have been made.

Part B: Geographic Segments

The Bank does not have overseas branches and the operations are entirely domestic. Therefore, no separate reporting
is done based on geographic segments.

Annual Report 2022-23 | 157

DCB Bank Limited

11.6 Related Party Transactions

Related Parties in terms of AS-18 on “Related Party Disclosures” are disclosed below:

Mr. Murali M. Natrajan : Key Management Personnel

The details of managerial renumeration of the Key Management Personnel of the Bank are as under:
(` in crore)
Particulars March 31, 2023 March 31, 2022
Mr. Murali M. Natrajan: Managing Director 4.42 5.61
Managerial Remuneration
RBI has approved variable pay of ` 75,00,000 for FY 2021-22 to be paid in accordance to RBI guidelines and
Compensation policy of the Bank.
Managerial Remuneration excludes the perquisite value of employee stock options exercised and other perquisites
are considered as per Income Tax Act.

11.7 Deferred Tax

The composition of Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL) is as under:
(` in crore)
Sr. Particulars As at As at
No. March 31, 2023 March 31, 2022
A. DTA :
(i) Provision for Loan Losses (minus deduction u/s 36(1) 219.07* 277.14
(viia) of the Income Tax Act, 1961)
(ii) Others 0.32 4.28
Total DTA [A] 219.39 281.42
B. DTL :
(i) Depreciation 15.61 13.27
(ii) Special Reserve u/s 36(1)(viii) of the Income Tax Act, 1961 43.79* 38.16
(iii) Others - -
Total DTL [B] 59.40 51.43
C. NET DTA [ A – B] 159.99* 229.99
*Adjustment made for earlier period deferred tax assets and liabilities.

11.8 Assets Taken Under Operating Leases

(` in crore)
Particulars March 31, 2023 March 31, 2022
Minimum Lease Rent payable
Payable not later than 1 year 68.02 55.50
Payable later than 1 year but not later than 5 years 249.49 195.85
Payable later than 5 years 504.85 316.63
Total 822.36 567.98
The total of lease payments recognised in the Profit and Loss 70.99 57.04
Account for the year

The lease rents are paid by the Bank for premises leased for its business operations. The above contingent
rents have been determined based on terms of individual lease agreements over the lease period. The terms of
renewal/purchase options and escalation clauses are those normally prevalent in similar agreements. There are
no undue restrictions or onerous clauses in the agreements.

158 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

11.9 Revaluation of Fixed Assets

The Bank revalued its owned premises as at December 31, 2022 which resulted in a revaluation gain of ` 78.10
crore which has been credited to Revaluation Reserve as at that date. The Bank computes depreciation on such
revalued premises over its estimated remaining useful life.

During the financial year 2022-23 an amount of ` 6.51 crore (Previous year: ` 6.03 crore) has been charged to the
Profit and Loss Account and this amount has been transferred from Revaluation Reserve to “Balance in Profit and
Loss Account”.

11.10 Contingent Liabilities

Description of Contingent Liabilities:
Sr. Contingent Liability (*) Brief Description
No.
1. Claim against the Bank not An amount of ` 34.79 crore (Previous year: ` 35.49 crore) is outstanding as
acknowledged as Debts at March 31, 2023, as claims against the Bank not acknowledged as Debts,
including ` 19.50 crore (Previous year: ` 19.50 crore) being in the nature of
a contingent liability on account of proceedings pending with Income Tax
authorities. The Bank is a party to various taxation matters in respect of which
appeals are pending and various legal proceedings in the normal course
of business. The Bank has reviewed and classified these items as possible
obligations based on legal opinion/judicial precedents/assessment and does
not expect the outcome of these proceedings to have a materially adverse
effect on the Bank’s Financial Statements. (Also refer note 15 on pending
litigation cases)
2. Liability on account of An amount of ` 3,441.63 crore (Previous year: ` 1,778.27 crore) is outstanding as
outstanding forward exchange at March 31, 2023. The Bank enters into foreign exchange contracts, currency
and derivative contracts options/swaps and interest rate futures on its own account and for customers.
Forward exchange contracts are commitments to buy or sell foreign currency
at a future date at the contracted rate. These forward contracts are subject
to revaluation on a daily basis and Mark to Market impact is recognised in
the Financial Statements. Interest rate futures are standardized, exchange-
traded contracts that represent a pledge to undertake a certain interest rate
transaction at a specified price, on a specified future date. The amount in
contingent liability represents notional principal amount of various financial
instruments which the bank undertakes in its normal course of business.
With respect to transactions entered by customers, the Bank generally takes
off-setting positions in the inter-bank markets which results into higher
number of outstanding contracts. The same also leads to representation of
large gross notional principal of the portfolio, while the actual credit/market
risk is much smaller.
3. Guarantees given on behalf An amount of ` 1,430.59 crore (Previous year: ` 1,409.65 crore) is outstanding
of constituents, Acceptances, as at March 31, 2023. As part of its commercial banking activity, the Bank
Endorsements and Others issues documentary credit and guarantees on behalf of its customers.
Guarantees generally represent irrevocable assurances that the Bank will
make payments in the event of the customer failing to fulfil its financial or
performance obligations.
4. Other items for which the Bank An amount of ` 190.64 crore (Previous year: ` 1,838.68 crore) is outstanding as
is contingently liable. at March 31, 2023. These include: a) Securities purchased and sold under Repo
and Reverse Repo transactions done by the Bank and includes also remaining
to be settled on the date of financial statements b) Liability in respect of capital
commitments relating to fixed assets and undrawn commitments in respect of
investments c) Credit enhancements relating to the sale of mortgage loan d)
Amount transferred to RBI under Depositor Education and Awareness Fund
(DEA Fund) e) Securities bought/sold and remaining to be settled on the date
of financial statements.
* Also refer Schedule – 12.

Annual Report 2022-23 | 159

DCB Bank Limited

12 Additional Disclosures

12.1 Details of “Provisions & Contingencies” debited to the Profit and Loss Account
(` in 000’s)
Particulars March 31, 2023 March 31, 2022
Provision for Income Tax
- Current 1,522,145 1,760,503
- Deferred (Refer note 11.7) 97,845 (740,050)
Provision/write-off towards non-performing assets 1,626,671 2,840,824
Floating Provision 151,579 129,212
Provision for Standard Assets* (474,327) 864,521
Sacrifice in One Time Settlement 217,715 55,492
Provision for Other Assets and Contingencies 121,107 12,380
Provisions for Restructured Advances (50,987) 171,898
Total 3,211,748 5,094,780
* includes provision for unhedged foreign currency exposure and provision for specific standard assets.

12.2 Depositor Education and Awareness Fund (DEA Fund)

In accordance with the guidelines issued by the RBI, the Bank transfers the amount to the credit of any account
which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed
for more than ten years to the DEA Fund.

Details of amounts transferred to DEAF are set out below:

(` in crore)
Particulars March 31, 2023 March 31, 2022
Opening balance of amounts transferred to DEA Fund 61.63 55.28
Add : Amounts transferred to DEA Fund during the year 11.53 7.21
Less : Amounts reimbursed by DEA Fund towards claims 2.78 0.86
Closing balance of amounts transferred to DEA Fund 70.38 61.63

160 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

12.3 Customer Complaints+

a) Summary information on complaints received by the bank from customers and from the Offices of
Ombudsman

Sr. Particulars March 31, 2023 March 31, 2022

No
Complaints received by the bank from its customers
1 Number of complaints pending at beginning of the year 575 2,282
2 Number of complaints received during the year 29,797 32,603
3. Number of complaints disposed during the year 29,929 34,310
3.1 Of which, number of complaints rejected by the bank 736 913
4. Number of complaints pending at the end of the year 443 575
Maintainable complaints received by the bank from
Office of Ombudsman
5. Number of maintainable complaints received by the 452 554
bank from Office of Ombudsman
5.1 Of 5, number of complaints resolved in favour of the 452 554
bank by Office of Ombudsman
5.2 Of 5, number of complaints resolved through 24 20
conciliation/mediation/advisories issued by Office of
Ombudsman
5.3 Of 5, number of complaints resolved after passing of 0 0
Awards by Office of Ombudsman against the bank
6. Number of Awards unimplemented within the 0 0
stipulated time (other than those appealed)

+ As compiled by the Management and relied upon by the auditors.

b) Top grounds of complaints received by bank from customers+

Financial Year 2022-23

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
Loans and 224 11,029 -1% 210 20
Advances
(a) Rate of Interest/
EMI/ Tenure
Disputes
(b) Document not
received
(c) Others

Annual Report 2022-23 | 161

DCB Bank Limited

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
ATM/Debit Cards 148 6,762 -22% 87 1
(a) Card not
working
(b) Cash not
dispensed at
other ATMs
(c) Others
Internet/Mobile/ 48 4,183 -2% 42 5
Electronic Banking
(a) Payment
gateway
transaction
disputes
(b) Internet Banking
login/password
issues
c) Others
Account opening/ 44 4,150 -10% 33 1
difficulty in
operation of
accounts
(a) Transactions
submitted at
branches
(b) Instruction
updates
(c) Others
Para-banking 61 988 -25% 30 1
(a) Policy
documents not
received (Loans
related)
(b) Policy
Cancellation
(Health/Life
Insurance)
(c) Others

162 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
Mis-selling 7 363 -34% 19 0
(a) Information
related wrt gold
loan
(b) Information
related wrt
Mortgage Loan
(c) Others
Others 43 2,322 18% 22 8
(a) SMS/E-mail
alerts sent but
not received
(b) Charges related
disputes
Total 575 29,797 -9% 443 36

Financial Year 2021-22

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
Loans and 942 11,175 16% 224 9
Advances
(a) Rate of Interest/
EMI/ Tenure
Disputes
b) Document not
received
(c) Others
ATM/Debit Cards 240 8,693 -7% 148 2
(a) Card not
working
(b) Cash not
dispensed at
other ATMs
(c) Others

Annual Report 2022-23 | 163

DCB Bank Limited

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
Internet/Mobile/ 264 4,282 -23% 48 1
Electronic Banking
(a) Payment
gateway
transaction
disputes
(b) Internet Banking
login/password
issues
(c) Others
Account opening/ 418 4,619 -9% 44 1
difficulty in
operation of
accounts
(a) Transactions
submitted at
branches
(b) Instruction
updates
(c) Others
Para-banking 178 1,316 111% 61 9
(a) Policy
documents not
received (Loans
related)
(b) Policy
cancellation
(Health/Life
Insurance)
(c) Others
Mis-selling 55 551 32% 7 1
(a) Information
related wrt gold
loan
(b) Information
related wrt
Mortgage Loan
(c) Others
Others 185 1,967 -30% 43 7

164 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Grounds of Number of Number of % increase/ Number of Of 5, number

complaints, (i.e. complaints complaints decrease in complaints of complaints
complaints relating pending at the received the number pending at the pending
to) beginning of during the year of complaints end of the year beyond 30
the year received over days
the previous
year
1 2 3 4 5 6
(a) SMS/E-mail
alerts sent but
not received
(b) Charges related
disputes
Total 2,282 32,603 -3% 575 30

The Bank has an “Integrated Complaints Management System” in which complaints are logged and addressed.
Complaints are reviewed on a regular basis to ensure timely response to customers.

The Bank has taken measures to reduce complaints across categories (reduced by 9%). The Bank has developed
systems in order to make customer interface services automated/system driven. The Bank shall continue to
improve processes in order to bring in faster resolutions and efficiency.

+ As compiled by the Management and relied upon by the auditors.

12.4 Letters of Comfort (LoC) / Letters of Undertaking (LoU)

The Bank has stopped issuing any fresh LoU in line with the RBI guidelines dated March 13, 2018 in this regard.
Outstanding LoU as on March 31, 2023 was ` NIL (Previous year: ` NIL).

12.5 Small and Micro Industries

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be
made relating to Micro, Small and Medium Enterprises. There have been no reported cases of delays in payments
to micro and small enterprises or of interest payments due to delays in such payments. The above is based on the
information available with the Bank which has been relied upon by the auditors.

12.6 Priority Sector Lending Certificates (‘PSLCs’) (Category-wise) sold and purchased during the year
(` in crore)

Particulars As at As at
March 31, 2023 March 31, 2022
PSLC purchased during the year
(i) PSLC – Agriculture - -
(ii) PSLC – SF/MF 130.00 -
(iii) PSLC – Micro Enterprises - -
(iv) PSLC – General - -
Total 130.00 -
PSLC sold during the year
(i) PSLC – Agriculture - -
(ii) PSLC – SF/MF - -
(iii) PSLC – Micro Enterprises 3,651.00 3,646.25
(iv) PSLC – General 500.00 1,950.00
Total 4,151.00 5,596.25

Annual Report 2022-23 | 165

DCB Bank Limited

12.7 Income from Bancassurance Business

(` in crore)

Sr. Nature of Income March 31, 2023 March 31, 2022

No.
1 For selling life insurance policies 41.06 33.15
2 For selling non-life insurance policies 11.37 7.69
3 For selling mutual fund products 0.80 1.07
Total 53.24 41.91

12.8 Income from Marketing and distribution

The Bank has received fees of ` 47.54 crores (Previous year: ` 31.39 crore) with respect to marketing and
distribution function (excluding bancassurance business) during the financial year 2022-23.
12.9 Implementation of IFRS converged Indian Accounting Standards (Ind AS)
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 Release was issued by the MCA on January 18, 2016
outlining the roadmap for implementation of Indian Accounting Standards (IND AS) converged with International
Financial Reporting Standards (IFRS) for banks. As per earlier instructions, banks in India were required to comply
with the IND AS for financial statements for accounting periods beginning from April 1, 2018 onwards, with
comparatives for the periods ending March 31, 2018 or thereafter. On April 05, 2018, the RBI had announced
deferment of implementation date by one year with IND AS being applicable to banks for accounting periods
beginning April 01, 2019 onwards. On March 22, 2019, the RBI has announced deferment of the implementation of
IND AS by banks till further notice.

12.10 Payment of DICGC Insurance Premium

(` in crore)

Sr. Particulars March 31, 2023 March 31, 2022

No.
1. Payment of DICGC Insurance Premium 39.17* 34.26*
2. Arrears in payment of DICGC premium NIL NIL
*Excluding Goods and Service Tax

13 OTHER MATTERS

13.1 Disclosure of penalties imposed by RBI

During the year ended March 31, 2023, RBI had imposed penalty of ` 0.024 crore on the Bank, for violation of
the RBI guidelines on “Monitoring of Availability of Cash in ATMs,” on account of “Cash Out”, at Banks ATM
throughout the FY 2022-23.

During the year ended March 31, 2022, RBI had imposed penalty of ` 0.001 crore on the Bank on March 30, 2022,
for violation of the RBI guidelines on “Monitoring of Availability of Cash in ATMs,” on account of “Cash Out”, at
one of Banks ATM during the month of November 2021.

166 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

13.2 Corporate Social Responsibility (CSR)

The Bank was required to spend ` 8.80 crore (Previous year: ` 9.60 crore) during the financial year 2022-23
towards Corporate Social Responsibility (CSR), in accordance with Companies Act, 2013.

The Bank has spent an amount of ` 8.85 crore (Previous year: ` 9.66 crore) in respect of CSR activities across the
country.

None of the CSR expenditure incurred by the Bank is to entities controlled by related parties identified by the
Bank as per Accounting Standard 18, Related Party Disclosures.

The details of amount spent during FY 2022-23 towards CSR are as under:

(` in crore)
Particulars In cash Yet to be paid Total
in cash (i.e.
provision)
1) Construction/acquisition of any assets - - -
2) For purposes other than (1) above: 8.85 - 8.85

The details of amount spent during FY 2020-21 towards CSR are as under:
(` in crore)
Particulars In cash Yet to be paid Total
in cash (i.e.
provision)
1) Construction/acquisition of any assets - - -
2) For purposes other than (1) above: 9.66 - 9.66

13.3 Remuneration

a) Qualitative disclosures

Nomination and Remuneration Committee (NRC)

The Nomination and Remuneration Committee of the Board consists of Independent Directors with one
member from the Risk Management Committee of the Board.

The main mandate of the Nomination & Remuneration Committee of the Board are:
• Deciding the size and composition of the Board and appointment of persons for the same.
• Recommending to the Board a policy, relating to the remuneration for the directors, key managerial
personnel and other employees.
• Evaluation of every director’s performance and making recommendations for remuneration for Non-
Executive Directors, Senior Management and the Key Managerial Personnel (KMP) of the Bank.
• Approving the ESOP and creation, subscription and allotment of shares to the eligible employees under
this approved ESOP.
• Review appointments, promotions, demotions, terminations and review performance appraisals of
CEO, KMP and Senior Management of the Bank.
• Review and approve succession plans Board, KMP and Senior Management.

Annual Report 2022-23 | 167

DCB Bank Limited

Design and Structure /Objectives of Compensation Policy

The Bank has put in place a Board approved Compensation Policy. The Bank’s objective is to maintain a
Compensation Policy that the Bank is able to attract, retain talent and motivate talent to perform at high
standards. It facilitates a performance culture in the Bank. The compensation will be risk aligned taking into
account, the long term performance of the Bank. The Compensation Policy is aligned with the statutory and
regulatory guidelines.

This Policy is applicable to all employees of the Bank including;

• Whole Time Directors (WTDs)
• Managing Director & Chief Executive Officer (MD & CEO)
• Material Risk Takers (MRTs): Material Risk Takers as defined as those employees whose actions have a
material impact on the risk exposure of the Bank.
• Risk, Compliance and Control employees
• Other categories of employees: All employees in support and other management functions including
front line employees.

Compensation structure consisting of:

i) fixed pay including perquisites, contributions towards superannuation/retiral benefits,
ii) variable pay in cash and equity linked instruments including ESOP/ CSARs.

Risk adjustments in remuneration

In general, the review of Risk Management framework shall be an integral part of the annual performance
review applicable to all employees. The methodologies for adjusting remuneration to risk and performance
will be consistent with the general risk management and corporate governance framework of the Bank.
A wide variety of measures of credit, market, liquidity and other risks shall be taken into consideration in
implementation of risk adjustment, such that no risks over the accepted risk appetite of the Bank are being
taken against the interest of the Bank.

Performance linked variable compensation

The Bank aims to align pay structure across levels in the annual rewards exercise (Compensation Revision)
carried out keeping the following considerations, namely performance of the bank, individual and business
unit, alignment of risks with the remuneration, encouraging rewards based on the long term contributions to
the bank, cost/ income ratio of the bank, capital adequacy ratio, employee turnover on account of increased
demand of talent in the industry and other related factors.

Malus/ Clawback clause is an integral part of the compensation Policy and is applicable as a risk adjustment/
alignment measure, wherein Malus permits the Bank to prevent vesting in full or in part of the amount of
a deferred remuneration for an employee. Clawback is an agreement between the employee and the Bank
in which the employee agrees to return previously paid or vested remuneration to the Bank. Conditions for
Malus/ Bank have been specified in the Bank’s Compensation Policy.

In alignment to the RBI Guidelines applicable from April 01, 2020, the Bank has a policy on deferral and
vesting of variable pay for applicable categories of employees as follows:

Deferral of Variable Pay: A minimum of 60% of the total variable pay shall be under deferral arrangements.
At least 50% of the cash bonus shall be deferred. However, in cases where the cash component of variable
pay is under ` 25 lakhs, deferral would not be required.

Period of Deferral Arrangement: This would be applied to both the cash and equity linked components of
the variable pay. The deferral period shall be for a minimum period of three years.

Vesting: The vesting shall be no faster than on pro-rata basis. Vesting shall not take place more frequently
than on a yearly basis to ensure a proper assessment of risks before the application of any adjustments.

168 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Limit on Variable pay: At least 50% of the total compensation shall be variable. Variable pay shall be limited
to a maximum of 300% of the fixed pay. Where the variable pay is up to 200% of the fixed pay, a minimum
of 50% of the variable pay shall be via equity linked instruments; and in case the variable pay is above 200%,
a minimum of 67% of the variable pay shall be via equity linked instruments. In an event that an employee is
barred by statute/ regulation from grant of equity linked instruments, their variable pay shall be capped at
150% of the fixed pay.

b) Quantitative disclosures
(` in crore)
Sr. Particulars As at As at
No. March 31, 2023 March 31, 2022
(a) Number of meetings held by the Nomination and Remuneration 7 7
Committee during the financial year
(b) Remuneration paid to the members of the Nomination and 0.13 0.13
Remuneration Committee
(c) Number of employees having received a variable remuneration 8* 7*
award during the financial year (as per compensation policy)
(d) Number and total amount of sign-on awards made during the NIL NIL
financial year
(e) Details of guaranteed bonus, if any, paid as joining / sign on bonus NIL NIL
(f) Details of severance pay, in addition to accrued benefits, if any NIL NIL
(g) Total amount of outstanding deferred remuneration, split into Cash 3.11 Cash 2.04
cash, shares and share-linked instruments and other forms Share linked Share linked
instruments 3.15** instruments 3.30**
(fair value of 11,04,776 (fair value of 984,629
units) options)
(h) Total amount of deferred remuneration paid out in the financial 0.94 0.99
year
(i) Breakdown of amount of remuneration awards for the financial Fixed 14.59# Fixed 15.01
year to show fixed and variable, deferred and non-deferred#
Variable 7.18* Variable 6.60*
-Deferred -Deferred
Cash 2.015 Cash 1.65
Share linked Share linked
instruments 3.15** instruments 3.30**
-Non Deferred 2.015 -Non Deferred 1.65
CSAR grant of No. of stock options
11,04,776 units granted during
the financial year –
984,629
(j) Total amount of outstanding deferred remuneration and 9.56 5.34
retained remuneration exposed to ex-post explicit and / or
implicit adjustment
(k) Total amount of reductions during the financial year due to ex- NIL NIL
post explicit adjustments
(l) Total amount of reductions during the financial year due to ex- NIL NIL
post implicit adjustment
(m) Number of MRTs identified 8 8
(n) Number of cases where malus has been exercised NIL NIL
(o) Number of cases where clawback has been exercised NIL NIL
(p) Number of cases where both malus and clawback have been NIL NIL
exercised
(q) The mean pay for the bank as a whole 0.064 0.062
(excluding sub-staff)
(r) The deviation of the pay of each of its WTDs from the mean pay. 4.36 5.55
* Pertains to FY 2021-22 paid in FY 2022-23 (Previous year: pertains to FY 2020-21 paid in FY 2021-22)
** Fair value computed using Black-Scholes options pricing model as on the grant date.
# One MRT Superannuated on June 30, 2022 and new MRT on boarded on July 01, 2022 accordingly the remuneration has been considered.
Fixed remuneration Includes Fixed CTC and Perquisites.
RBI has approved variable pay of Rs. 75,00,000 for Managing Director & CEO for FY 21-22, applicable payment has been released in the month
of April 2023 in line with RBI guidelines.

Annual Report 2022-23 | 169

DCB Bank Limited

13.4 Disclosure on remuneration to Non-Executive Directors

The Non-Executive Directors are paid remuneration by way of sitting fees for attending meetings of the Board
and its committees. An amount of ` 1.40 crore (Previous year: ` 1.31 crore) was paid as sitting fees to the Non-
Executive Directors during the year.

13.5 Proposed Dividend

The Board of Directors have recommended a dividend of ` 1.25 per share (12.5%) for the year ended March 31,
2023 subject to approval of the shareholders in the ensuing Annual General Meeting.

Dividend paid during the year, represents dividend (` 1.00 per equity share) for the year ended March 31, 2022
paid pursuant to approval of shareholders at Annual General Meeting held on June 22, 2022

13.6 Disclosure under Rule 11(e) of the Companies (Audit & Auditors) Rules, 2014

The Bank, as part of its normal business, grants loans and advances (including loans against third party deposits
or other margins / security), makes investment, provides guarantees (including against margin / guarantees
received from third parties / banks) to and accepts deposits and borrowings from its customers, other entities
and persons. These transactions are part of Bank’s normal banking finance business, which is conducted ensuring
adherence to regulatory requirements.

Other than the transactions described above

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Bank to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in other persons or entities identified by or on behalf of the Bank (“Ultimate
Beneficiaries”) or provide any guarantee, security or like on behalf of the Ultimate Beneficiaries.

(b) The Bank has not received any funds from any person(s) or entity(ies) (“Funding Party”) with the
understanding, whether recorded in writing or otherwise, that the Bank shall, whether, directly or indirectly,
lend or invest in other persons or entities identified by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

13.7 As per the MCA notification dated August 05, 2022 Government has notified the Companies (Accounts)
Fourth Amendment Rules, 2022. As per the amended rules back-up of the books of account/other books &
papers maintained in electronic mode, including at a place outside India, shall be kept in servers physically
located in India on a daily basis.

The Bank’s servers are physically located in India and back up is done on a daily basis. Thus the Bank is
compliant with the requirements of the above notification.

13.8 The MCA vide its notification dated March 24, 2021 had introduced the concept of audit trails by inserting
proviso to rule3(1) of the Companies (Accounts) Rules, 2014. It was provided that for the F.Y. commencing
on or after April 01, 2021, every company which uses accounting software for maintaining its books of
account, shall use only such accounting software which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account along with the date when
such changes were made and ensuring that the audit trail cannot be disabled. However, the applicability was
deferred by 1 year by amending the same vide Companies (Accounts) Second Amendment Rules, 2021. The
new date of applicability was April 01, 2022. Yet again, the MCA has amended the proviso vide Companies
(Accounts) Second Amendment Rules, 2022 and has deferred the applicability by 1 more year. Hence the
provision of audit trail is now applicable w.e.f. April 01, 2023.

The Bank uses various software as its accounting software and the management has taken steps to be
compliant with requirements of Audit trail functionality from April 01, 2023.

170 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

14 Net overnight open position outstanding as on March 31, 2023 was ` 3.15 crore (Previous year: ` 2.56 crore).

15 The Bank’s pending litigations comprise of claims against the Bank by the clients and proceedings pending with
Income Tax authorities. The Bank has reviewed all its pending litigations and proceedings and has adequately
provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial
statements. The Management believes that the possibility of an outflow of resources embodying economic
benefits in these cases is possible but not probable and hence no provision is required in these cases. However,
a contingent liability has been disclosed with respect to these cases. Refer note 11.10 for details on contingent
liabilities.

16 The Bank has a process whereby periodically all long-term contracts (including derivative contracts) are assessed
for material foreseeable losses. The Bank reviews and ensures that adequate provision as required under any
law / accounting standards for material foreseeable losses on such long-term contracts (including derivative
contracts) has been made in the books of account. There were no such contracts for which there were any
material foreseeable losses for the year ended March 31, 2023.

17 Previous year’s figures have been regrouped / reclassified, wherever considered necessary, in order to make them
comparable with figures for the current year.

18 These are the notes appended to and forming part of the financial statements for the year ended March 31, 2023.

For and on behalf of the Board of Directors

Murali M. Natrajan Farokh Subedar Thiyagarajan Kumar Satish Gundewar Rubi Chaturvedi
MD & CEO Chairman Director Chief Financial Officer Company Secretary
DIN-00061194 DIN-00028428 DIN- 00735914
As per our report of even date.
For S. R. BATLIBOI & ASSOCIATES LLP For SUNDARAM & SRINIVASAN
Chartered Accountants Chartered Accountants
Firm Registration Number: 101049W/E300004 Firm Registration Number: 004207S

Sarvesh Warty S Ramkumar

Partner Partner
Membership No. : 121411 Membership No. : 238820

Place : Mumbai Place : Mumbai

Date : May 05, 2023 Date : May 05, 2023

Annual Report 2022-23 | 171

DCB Bank Limited

PILLAR III DISCLOSURES UNDER THE NEW

CAPITAL ADEQUACY FRAMEWORK (BASEL III)
1. SCOPE OF APPLICATION Tier-II Capital

DCB Bank Ltd. is a scheduled commercial bank The Bank’s Tier II capital includes investment
which was incorporated on May 31, 1995. The Bank reserve, investment fluctuation reserve, general
has no subsidiaries. provision for standard assets and subordinated
debt instruments (lower Tier II bonds) eligible for
As on March 31, 2023, the Bank does not have inclusion in Tier II capital.
investment in any insurance entity.
Subordinated Debt (Lower Tier II bonds)
2. CAPITAL STRUCTURE
As on March 31, 2023 the Bank had an outstanding
Capital funds are classified into Tier-I and Tier-II subordinated debt (Unsecured Redeemable Non-
capital under the capital adequacy framework. Convertible Bonds) aggregating ` 3,000 million, the
details of which are stated below:
Tier-I Capital
(` million)
The Bank’s Tier I capital will consist of Common Deemed Date of Coupon Tenure Equivalent
Allotment Rate (in Amount as
Equity Tier I and Additional Tier I capital. Common
(% p.a.) months) on March 31,
Equity Tier 1 (CET1) capital must be at least 5.5% 2023
of risk-weighted assets (RWAs) i.e. for credit risk + 28 March 2023 9.35% 120 3,000.0
market risk + operational risk on an ongoing basis Total 3,000.0
and Additional Tier I capital can be a maximum of
1.5%, thus making total Tier I capital to be at least 7%. Composition of Capital – Tier I and Tier II
(` million)
In addition to the minimum Common Equity Tier 1 Particulars As on
capital of 5.5% of RWAs, banks are also required to March 31, 2023
maintain a capital conservation buffer (CCB) of 2.5% 1. Tier I capital
of RWAs in the form of Common Equity Tier 1 capital. 1.1 Paid-up share capital 3,115.0
1.2 Reserves 39,903.4
Tier-I capital includes paid-up equity capital, 1.3 Gross Tier I capital (1.1 + 1.2) 43,018.4
securities premium, statutory reserves, capital 1.4 Deductions 175.4
reserves, special reserve, revaluation reserve, other 1.5 Total Tier I capital (1.3 - 1.4) 42,843.0
disclosed free reserves and balance in Profit and 2. Tier II capital
Loss account. Profits in current financial year may 2.1 Subordinated Debt (Lower Tier II 3,000.0
be included in Tier I based on fulfilment of certain bonds)
conditions regarding incremental provisions for non- 2.2 General Provisions 3,689.8
performing assets. 2.3 Gross Tier II capital (2.1 + 2.2) 6,689.8
2.4 Deductions -
Equity Capital 2.5 Total Tier II capital (2.3 - 2.4) 6,689.8
3. Debt capital instruments eligible for
The Bank has authorised share capital of ` 5 billion inclusion in Upper Tier II capital
comprising 500,000,000 equity shares of ` 10/- each. 3.1 Total amount outstanding -
As on March 31, 2023 the Bank has issued subscribed
3.2 Of which amount raised during -
and paid-up capital of ` 3.12 billion, constituting
the current year
311,501,733 shares of ` 10/- each. The provisions of the
3.3 Amount eligible to be reckoned -
Companies Act, 2013 and other applicable laws and as capital funds
regulations govern the rights and obligations of the
equity share capital of the Bank.

172 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Particulars As on The Bank has also implemented a Board approved

March 31, 2023 Stress Testing policy. Stress Testing involves the use
4. Subordinated debt eligible for of various techniques to assess the Bank’s potential
inclusion in Lower Tier II capital vulnerability to extreme but plausible (“stressed”)
4.1 Total amount outstanding 3,000.0 business conditions. Typically, this relates, among
4.2 Of which amount raised during 3,000.0 other things, to the impact on the Bank’s profitability
the current year and capital adequacy. Stress Tests are conducted on
4.3 Amount eligible to be reckoned 3,000.0 a quarterly basis on the Bank’s on and off balance
as capital funds
sheet exposures to test the impact of Credit,
5. Other deductions from capital
Liquidity risk and Interest Rate Risk in the Banking
5.1 Other deductions from capital - book (IRRBB). The stress test results are put up to
6. Total eligible capital the Risk Management Committee (RMC) of the
Board on a quarterly basis, for their review and
6.1 Total eligible capital (1.5 + 2.5) 49,532.8
guidance. The Bank periodically assesses and refines
its stress tests in an effort to ensure that the stress
3. CAPITAL ADEQUACY scenarios capture material risks as well as reflect
possible extreme market moves that could arise as a
The Bank has a process for assessing its overall result of market conditions. The stress tests are used
capital adequacy in relation to the Bank’s risk profile in conjunction with the Bank’s business plans for the
and a strategy for maintaining its capital levels. The purpose of capital planning in the ICAAP. The Bank
process ensures that the Bank has adequate capital has also implemented a Board approved separate
to support all the material risks and an appropriate Stress Testing Policy / Model for its Securitized
capital cushion. The Bank identifies, assesses and portfolio.
manages comprehensively all risks that it is exposed
to through robust risk management framework, In line with the RBI guidelines for implementing
control mechanism and an elaborate process for the New Capital Adequacy Framework under
capital calculation and planning. Basel III, the Bank has successfully migrated to the
framework from April 1, 2013. In accordance with the
The Bank has formalised and implemented RBI’s requirement, the Bank has continued to adopt
a comprehensive Internal Capital Adequacy Standardised Approach (SA) for Credit Risk and
Assessment Process (ICAAP). The Bank’s ICAAP Basic Indicator Approach (BIA) for Operational Risk
covers the capital management policy of the Bank to compute capital as on March 31, 2023. Besides
and also sets the process for assessment of the this, the Bank continues to apply the Standardised
adequacy of capital to support current and future Duration Approach (SDA) for computing capital
projections / risks. requirement for Market Risk. RBI has prescribed
banks to maintain a minimum CRAR of 9% with
The Bank has a structured process for the regard to credit risk, market risk and operational
identification and evaluation of all risks that the risk on an ongoing basis. The total Capital to Risk
Bank faces, which may have an adverse material weighted Assets Ratio (CRAR) as per Basel III
impact on its financial position. The Bank considers guidelines works to 17.55% as on March 31, 2023 (as
the following risks as material risks it is exposed to against minimum regulatory requirement of 11.50%).
in the normal course of its business and therefore, The Tier I CRAR stands at 15.18% as against RBI’s
factors these while assessing / planning capital: prescription of 9.50%. The Bank has followed the RBI
guidelines in force, to arrive at the eligible capital, risk
• Credit Risk • Liquidity Risk weighted assets and CRAR.
• Concentration Risk • Strategy Risk
• Market Risk • Reputational Risk
• Operational Risk • Residual Risk
• Interest Rate Risk • Economy risk
in the Banking Book

Annual Report 2022-23 | 173

DCB Bank Limited

Capital requirements for Credit Risk, Market Risk The Board of Directors (BOD) approves the
and Operational Risk: strategies and policies for Risk Management, based
(` million) on recommendations of the Risk Management
Particulars As on Committee (RMC) of the Board set up to focus
March 31, 2023 upon risk management issues. The RMC reviews
1. Capital requirement for Credit 22,159.3 various aspects of risk arising from the businesses
Risk undertaken by the Bank. Operating level risk
• P
 ortfolio subject to 21,118.9 committees comprising of senior management viz.
Standardised Approach Asset Liability Management Committee (ALCO), the
• Securitization Exposures 1,040.4 Operational Risk Management Committee (ORCO)
2. Capital requirement for Market 357.2 and the Credit Risk Management Committee (CRMC)
Risk oversee specific risk areas. These committees in turn
•  tandardised Duration
S provide inputs for review by the Risk Management
Approach Committee (RMC).
o Interest Rate Risk 187.4
o F
 oreign Exchange Risk 54.0 4.1 Risk Management Committee (RMC) of the
(Including gold) Board:
o Equity Risk 115.8
The Risk Management Committee of the Board
3. Capital requirement for 2,522.7
Operational Risk is the primary tier to oversee implementation of
• Basic Indicator Approach 2,522.7 Board approved strategies and policies, recommend
setting up of tolerance limits wherever required,
Total capital requirements 25,039.2
(1 + 2 + 3) monitor implementation of strategies and policies,
Total capital 49,532.8
as well as adherence to prescribed tolerance
limits, etc. The RMC oversees the functioning of
CRAR % 17.55 %
Executive Level Committees for risk management.
Tier-I CRAR % 15.18 %
For this purpose, the minutes of the meetings of the
Executive Level Committees are placed before RMC
4. RISK MANAGEMENT FRAMEWORK regularly. Matters relating to Credit risk are routed
through the Credit Committee of Board (CCB)
The Bank is exposed to various types of risk such which also approves individual credit exposure in
as Credit, Market, Operation, Liquidity, Interest Rate, excess of executive delegated lending authority.
Reputation, Legal and Strategic risk. The Bank
has separate and independent Risk Management 4.2 Executive Level Committees:
Department in place which oversees all types of
risks in an integrated fashion. At Executive Management level, the organisational
responsibilities for implementing and monitoring
The objective of risk management is to have Board approved strategies and policies and adhering
optimum balance between risk and return. It entails to prescribed tolerance limits etc. are as under:
the identification, measurement and management
of risks across the various businesses of the Bank. Sr. Executive Level Focus Area Chairman
Risk is managed through framework defined in No. Committee
policies approved by the Board of Directors and 1 Asset Liability All aspects of Managing
supported by an independent risk management Management Market Risk Director &
Committee management, Chief Executive
function which monitors and takes corrective action (ALCO) monitoring & Officer
so that the Bank operates within its risk appetite. The control (MD & CEO)
risk management function attempts to anticipate 2 Credit Risk All aspects Managing
vulnerabilities through quantitative or qualitative Management of Credit Risk Director &
examination of the embedded risks in various Committee management, Chief Executive
(CRMC) monitoring & Officer
activities. The Bank continues to focus on refining control (MD & CEO)
and improving its risk measurement systems. In
3 Operational Risk All aspects of Chief Risk
addition to ensuring compliance with regulatory Management Operational Risk Officer
requirements, the Bank has developed robust Committee management, (CRO)
internal systems for assessing capital requirements (ORCO) monitoring &
control
keeping in view the business objectives.

174 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

All the Executive Level Committees meet at least with the responsibilities to formulate standards for
once in a month. ALCO however meets more presentation of credit proposals, financial covenant,
frequently depending upon market conditions. rating standards and benchmarks. The committee
also oversees compliance with Pillar 2 requirements
Board of under Basel III such as ICAAP and Stress Test.
Directors
The Bank has implemented RAM rating model of
CRISIL which is being used to assess the credit
Risk Management rating of all business loans exceeding ` 10 million.
The rating serves as a single point indicator of the
Committee (RMC) of
diverse counterparty risk for taking credit decision.
the Board The rating migration is monitored on regular interval.

The Bank has a well-developed credit monitoring

MD & CEO system to monitor the health of the loan accounts
(Chairman) and to detect the delinquencies at the initial stage.
A separate department independent of the business
units is monitoring the transactions in all the Corporate,
CRO
Agri and Inclusive Banking (AIB), SME and MSME
exposures with credit limits exceeding ` 10 million with
a view to detect any early warning signals.

Credit Risk Asset Liability Operational The Bank adopts an integrated approach to credit
Management Management Risk risk management, which encompasses:
Committee Committee Management
• Establishment and articulation of corporate priorities
(CRMC) (ALCO) Committee
• Institution and inculcation of an appropriate credit
Note: Information Security is a part of Operational Risk culture
– IT and reports to the Chief Risk Officer, who in turn • Determination of specific credit risk strategy and
reports to the MD & CEO. profile
• Implementation of appropriate credit risk controls
• Monitoring the effectiveness of credit risk controls..
5. CREDIT RISK
Though the Bank has implemented the Standardized
5 (a) Credit risk is defined as the possibility of losses approach for regulatory capital measurement for
associated with diminution in the credit quality of credit risk, the necessary steps for implementing
borrowers or counterparties. In a bank’s portfolio, Internal Rating Based Approach have been initiated.
losses stem from outright default due to inability
or unwillingness of a customer or counterparty to 5.a.ii Credit Strategy and Risk Profile:
meet commitments in relation to lending, trading,
The Bank adopts a credit risk strategy and risk
settlement and other financial transactions. appetite, which is in line with its risk taking ability
to ensure conservation and growth of shareholder
The Bank adopts the definition of ‘past due’ and funds, with a proper balance between risk and
‘impaired credits’ (for accounting purposes) as reward. Financial resources are allocated to best
defined by Reserve Bank of India under Income optimise the risk reward ratio.
Recognition, Asset Classification and Provisioning
There is a clearly articulated definition of acceptable
(IRAC) norms (vide RBI Master Circular dated
credit risk, based upon:
October 1, 2021).
• Identification of target markets/segments
5.a.i Credit Risk Management: • Establishing of characteristics of desirable
customers within the target market
Credit Risk Management Committee (CRMC) • Assessing whether adequate resources are
headed by MD & CEO is the top-level functional available to support the business
committee for managing credit risk. The committee
• Ensuring that all economic and regulatory
is responsible for implementation of Credit Risk
Management policy approved by the Bank’s Board. requirements are complied with
The committee considers and takes decision • Ensuring that the portfolio is consistent with
necessary to manage and control credit risk within the Bank’s strategy and objectives especially in
the overall quantitative prudential limits approved relation to risk concentration, maturity profile and
by the Bank’s Board. The committee is entrusted liquidity management.

Annual Report 2022-23 | 175

DCB Bank Limited

5.a.iii Credit Risk Controls: Bank’s stated key priorities. There is a commitment
to training and upgrading of staff skills. Strong
Credit risk controls focus on identification, ‘ownership’ of exposures is encouraged, through
measuring, monitoring and managing the assumed
rewards as well as strong accountability.
risks and include:
• A documented credit policy and credit risk 5 (b) Total gross credit risk exposure as on
management policy March 31, 2023:
• Approval process with delegated authorities (` million)
• Asset quality and risk rating system and its
Category Exposure
verification
• Effective loan disbursement mechanism to Fund based1 3,79,207.3
minimise the legal risk Non fund based 2
12,085.8
• Effective loan administration to ensure past-due Total 3,91,293.1
management and bad loan detection
• A loan review mechanism Note:
• Portfolio management tools to manage portfolio
1.
Fund based credit exposure excludes Cash in
risks hand, Balance with RBI, SLR investments, deposits
placed NABARD, SIDBI & NHB, Fixed and Other
Management of credit risk is at three levels: assets.
2.
Non-fund based exposure includes outstanding
• Strategic or Portfolio level, so as to ensure that no
Letter of Credit, Acceptances and Bank Guarantee
single event can have a significant adverse impact
exposures.
• Established credit policy to have a minimum
Exposures reported above include limits or
standard for assuming risk
outstanding whichever is higher, for other than term
• Reliance on the competence of trained staff to
loans and NPAs. In case of terms loans and NPAs,
make sound credit decisions..
the outstanding amount has been considered for
There is a clear separation in functional this purpose.
responsibilities between:
5 (c) Geographical distribution of exposures as on
• Origination and sales March 31, 2023:
• Credit assessment and approvals (` million)
• Post- sanction loan administration and
Category Domestic Overseas
• Credit Risk Management.
Fund based 3,79,207.3 -
The Bank relies upon formal and
Non fund based 12,085.8 -
conventional risk assessment, viz.:
Total 3,91,293.1 -
• The ability and willingness of borrowers to repay
• Dependence primarily on cash flows for repayment
with security taken to provide a secondary source 5 (d) Industry type distribution of exposures as on
of repayment March 31, 2023:
• Quality of data and analysis thereof forms the (` million)
basis of assessment and not external reputation
Industry Fund Non Fund Total
or unsubstantiated beliefs Based Based
• Rational assessment of probability of default and Retail Loans 1,32,210.2 258.1 1,32,468.3
assessment of ‘Worst Case Scenario’
Housing Loans 89,635.2 2.5 89,637.7
• Transparency and communication of all relevant
Auto Loans 40.6 - 40.6
facts (negative as well as positive) necessary for
making an informed credit decision Personal Loan 256.3 - 256.3

• Documentation of all assessment, rationale and Other Loans (Gold Loans, 41,884.1 255.6 42,139.7
Loans against deposits &
decisions. Shares etc.)

Know Your Customers ’KYC’ forms the bedrock of Staff Loans 394.0 - 394.0

initiating and sustaining any relationship. Trade 72,713.9 795.9 73,509.8

The Bank’s selection of personnel and systems

of rewarding performance is aligned to meet the

176 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Industry Fund Non Fund Total Industry Fund Non Fund Total
Based Based Based Based

Trade - Retail 55,793.6 129.5 55,923.1 Real Estate Activities incl. 3,401.3 55.0 3,456.3
Lease Rent Discounting
Trade - Wholesale 16,920.3 666.5 17,586.7
Gems & Jewellery 2,407.8 495.0 2,902.8
Agriculture 47,726.2 73.6 47,799.8
Chemical & Chemical 2,205.3 21.6 2,226.9
NBFC 28,698.3 389.8 29,088.1 Products
NBFC - HFC 6,478.0 285.5 6,763.6 Travels & Tourism 1,651.8 51.9 1,703.7
NBFC - Investment and 138.6 0.5 139.0 Other Manufacturing 1,430.9 23.4 1,454.3
Credit Company (AFC)
Paper & Paper Products 762.1 276.7 1,038.8
NBFC - Others 22,081.7 103.8 22,185.5
Capital Market (including 20.0 943.1 963.1
Miscellaneous Services 26,549.2 192.5 26,741.7 Brokers)
of which Retail Business 18,539.2 - 18,539.2 Cement & Cement Products 959.9 2.1 962.0
Loans
Wood & Wood Products 950.3 - 950.3
Construction incl. 21,818.7 2,256.6 24,075.2
Residential Housing Vehicles, Vehicle Parts & 768.6 0.1 768.8
Transport Equipments
Residential Constructions 16,119.7 64.7 16,184.3
IT & related 627.5 119.8 747.2
Construction Contractors 2,676.6 815.7 3,492.2
Mining & Quarrying 729.7 0.0 729.7
Construction Others 3,022.4 1,376.3 4,398.7
Rubber, Plastic & their 551.6 32.5 584.2
Logistics 11,234.1 528.9 11,763.0 Products
Logistics - Transport 9,788.1 89.1 9,877.2 Renting of equipments 576.6 4.7 581.3
Operators( includes CV
loans) Petroleum, Coal Products & 273.5 152.5 426.0
Nuclear fuels
Logistics - Others 1,446.0 439.8 1,885.8
Finance (Others) 79.0 205.3 284.3
Infrastructure (Including 5,213.3 1,061.8 6,275.1
Energy, Telecommunications, Leather & Leather Products 104.9 0.1 105.0
Water & Sanitation and Social
& Commercial Infra) Beverages (Excl. Tea & 96.4 - 96.4
Coffee) and Tobacco
Textiles 5,866.5 40.8 5,907.3
Glass & Glassware 56.2 - 56.2
All Engineering 2,908.2 960.9 3,869.1
Residual 703.8 1,658.2 2,361.9
Food Processing 3,413.6 367.8 3,781.4
Grand Total 3,79,207.3 12,085.8 3,91,293.1
Basic Metal & Metal Products 2,498.1 1,116.9 3,615.0

5 (e) Residual contractual maturity breakdown of assets as on March 31, 2023

(` million)
Assets Next 2-7 Days 8-14 15-30 31 days to 2 months 3 Months 6 Months 1-3 Years 3-5 Years Above 5 TOTAL
Day Days days 2 months -3 months -6 Months -1 Year Years
Cash 1,846.3 - - - - - - - - - - 1,846.3

Balance with 1,540.9 531.0 560.5 386.1 624.8 734.0 1,348.3 2,909.4 9,226.4 382.9 215.5 18,459.8
RBI

Balances 603.4 2,751.9 - - 0.1 - - 2.0 20.9 - - 3,378.3

with Other
Banks
Investments 32,178.7 236.7 - 1,240.1 11,461.2 700.0 - 27,186.3 49,437.8 2,024.6 1,359.0 1,25,824.4
Advances 1,946.0 7,213.0 5,122.4 4,788.7 6,279.9 13,746.7 21,286.1 21,040.5 1,01,769.5 38,942.2 1,21,672.3 3,43,807.3
Fixed Assets - - - - - - - - - - 8,262.7 8,262.7
Other Assets 114.3 84.6 137.3 429.3 1,400.9 410.8 586.7 3,393.7 6,283.1 1,889.5 7,349.5 22,079.7
Total 38,229.6 10,817.2 5,820.2 6,844.2 19,766.9 15,591.5 23,221.1 54,531.9 1,66,737.7 43,239.2 1,38,859.0 5,23,658.5

Annual Report 2022-23 | 177

DCB Bank Limited

5 (f) Advances and Provisions: 6. CREDIT RISK: Disclosures for portfolio subject to
(` million) the Standardised Approach
Particulars As on
6 (a) The Bank has used the ratings of the following
March 31, 2023
domestic external credit rating agencies (arranged in
(a) Amount of NPAs (Gross) 11,228.4
alphabetical order) for the purposes of risk weighting
i. Substandard 4,886.3 their claims for capital adequacy purposes:
ii. Doubtful 1 2,938.7 a. Acuite Ratings & Research Ltd
iii. Doubtful 2 3,306.7 b. CARE Ratings Limited
iv. Doubtful 3 96.7 c. CRISIL Limited
v. Loss - d. ICRA Limited
(b) Net NPAs 3,569.2 e. India Ratings and Research Private Limited
(c) NPA Ratios (India Ratings) and
f. Infomerics Valuation and Rating Private Limited
i. G
 ross NPAs to gross 3.19 %
advances (%)
International credit rating agencies (arranged
ii. N
 et NPAs to Net 1.04 %
Advances (%) in alphabetical order) for the purposes of risk
(d) Movement of NPAs (Gross) weighting their claims for capital adequacy purposes
where specified:
i. O
 pening balance (as on 12,899.3
March 31, 2022) a. Fitch;
b. Moody’s; and
ii. Additions during the 16,984.6
year c. Standard & Poor’s
iii. Reductions during the 18,655.5
6 (b) A description of the process used to transfer
year
public issuer ratings onto comparable assets in the
iv. Closing balance 11,228.4
banking book:
(e) Movement of provisions
for NPAs (excluding • Bank has used short term ratings for assets with
provision on Standard maturity upto one year and long-term ratings for
Assets) assets maturing after one year as accorded by the
i. O
 pening balance (as on 7,167.0 approved external credit rating agencies.
March 31, 2022) • Bank has not cherry-picked ratings. Bank has not
ii. P
 rovision made during 5,792.2 used one rating of a CRA (Credit Rating Agency)
the year for one exposure and another CRA’s rating for
iii. W
 rite-off / write-back 5,300.0 another exposure on the same counterparty
of excess provisions unless only one rating is available for a given
iv. Closing balance 7,659.2 exposure.
(f) Amount of Non- -
• Notwithstanding the repayable on demand
Performing Investments
condition, cash credit exposures have been
(g) Amount of provisions -
subjected to Long-term rating.
held for non-performing
investments • If an issuer has a long term external credit rating
(h) Movement of depreciation that warrants RW (Risk Weight) of 150%, all
on investments unrated exposures on the same issuer whether
i. O
 pening balance (as on 158.0 long or short is assigned the same 150% RW unless
March 31, 2022) mitigated by recognised Credit Risk Mitigation
ii. A
 dd: Provision made 38.4 (CRM) techniques.
during the year • Bank has used only solicited rating from the
iii. L
 ess: Write-off/ 24.3 recognised CRAs. In case the issuer has multiple
write-back of excess ratings from CRAs, the Bank has a policy of
provision during
choosing (if there are two or more ratings) lower
the year (including
depreciation utilised on rating.
the sale of securities) • Where RW associated with the rating by a CRA
iv. Closing balance 172.1

178 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

for a specific investment instrument is lower than i. No transaction in which Credit Risk Mitigation
one corresponding to unrated exposure, but the (CRM) techniques are used has been assigned
Bank’s exposure is not in that instrument but higher capital requirement than as otherwise
some other debt, the RW for the rated exposure identical transaction where such techniques
has been applied to Bank’s unrated exposure are not used.
provided the latter ranks pari-passu or senior to ii. The Bank has taken care to see that effects of
the specific rated exposure and the maturity of CRM are not double counted. To ensure this no
Bank’s claim is not later than the rated exposure. additional supervisory recognition of CRM for
• If either the issuer or a single issue has been rated regulatory capital purposes are made available
warranting RW equal or higher than unrated on claims for which an issue-specific rating is
claim, a claim on the same issuer which is unrated used that already reflects that CRM.
but ranks pari-passu or subordinate to the rated iii. Principal-only ratings will not be allowed within
exposure has been assigned the same RW as the CRM framework. The rating should cover
applicable to the rated exposure. principal and interest.
• No recognition of CRM technique has been taken Bank has therefore put in place robust
into account in respect of a rated exposure if procedures and processes to control these
that has already been factored by the CRA while risks, including strategy, consideration of
carrying out the rating. the underlying credit, valuation, policies and
For exposure amounts after risk mitigation subject procedures systems, control of roll-off risks, and
to the standardised approach, amount of a Bank’s management of concentration risk arising from
outstanding (rated and unrated) in the following the use of CRM techniques and its interaction
three major risk buckets as well as those that are with the Bank’s overall credit risk profile.
deducted as on March 31, 2023 are as follows:
(` million) 7 (b) Eligible Financial Collateral:
Particulars Fund Non fund The following collateral instruments are eligible for
based based recognition in the comprehensive approach: -
Below 100% risk weight 2,64,766.4 5,915.2
i. Cash (as well as certificates of deposit or comparable
100% risk weight 90,951.4 2,903.7 instruments, including fixed deposit receipts, issued
More than 100% risk weight 23,489.5 3,266.9 by the lending bank) on deposit with the bank which
is incurring the counterparty exposure.
Total 3,79,207.3 12,085.8
ii. Gold: Gold would include both bullion and jewellery.
However, the value of the collateralized jewellery
7. CREDIT RISK MITIGATION: Disclosures for should be arrived at after notionally converting
Standardised Approach these to 99.99 purity.

7 (a) The Bank has adopted Credit Risk Mitigation iii. Securities issued by Central and State Governments
(CRM) Techniques and Collateral Management
iv. Kisan Vikas Patra and National Savings Certificates
(CM) guidelines issued by RBI under Master provided no lock-in period is operational and if they
circular – Prudential guidelines on capital Adequacy can be encashed within the holding period.
and Market Discipline – New Capital Adequacy
Framework (NCAF) (vide RBI Master Circular dated v. Life insurance policies with a declared surrender
July 01, 2015). value of an insurance company which is regulated
by an insurance sector regulator.
Bank has utilised credit risk mitigation in the case of
vi. Debt securities rated by a chosen Credit Rating
Bank’s own deposits, Kisan Vikas Patra, LIC policies, Agency in respect of which banks should be
National Saving Certificate and gold, wherever the sufficiently confident about the market liquidity
collateral is identifiable, marketable and enforceable where these are either:
and complies with RBI requirements. Sovereign
exposures and Sovereign guaranteed exposures are a) Attracting 100 per cent or lesser risk weight
i.e., rated at least BBB(-) when issued by public
risk weighted as per RBI directives.
sector entities and other entities (including
banks and Primary Dealers); or
The general principles applicable for use of credit
risk mitigation techniques are as under:

Annual Report 2022-23 | 179

DCB Bank Limited

b) Attracting 100 per cent or lesser risk weight 8. SECURITIZATION EXPOSURES

i.e., rated at least CARE A3/ CRISIL A3/ India
Ratings and Research Private Limited (India As per RBI guidelines on Securitization exposure,
Ratings) A3/ICRA A3 / Acuite A3 for short- Investments by banks in securitized assets,
term debt instruments. representing loans to various categories of priority
sector, except ‘others’ category, are eligible for
vii. Debt Securities not rated by a chosen Credit classification under respective categories of
Rating Agency in respect of which banks should priority sector lending (PSL) depending on the
be sufficiently confident about the market liquidity underlying assets.
where these are:
In the Financial Year 2022-23, the Bank has made
a) issued by a bank; and investments in securitized assets by way of Pass
Through Certificates, aggregating to ` 25,355.6
b) listed on a recognized exchange; and million, the outstanding of this as on March 31, 2023
was ` 21,211.7 million.
c) classified as senior debt; and
The following table sets forth the details of
d) all rated issues of the same seniority by the investments in Pass Through Certificates carried out
by the Bank and their position as on March 31, 2023.
issuing bank are rated at least BBB(-) or CARE
A3/ CRISIL A3/ India Ratings and Research (` million)
Private Limited (India Ratings) A3/ICRA A3 /
Acuite A3 by a chosen Credit Rating Agency; Financial Original Actual
and Year Investment March 31, 2023
2017-18 997.5 31.9
e) the bank holding the securities as collateral
2018-19 549.9 47.2
has no information to suggest that the issue
justifies a rating below BBB(-) or CARE A3/ 2019-20 941.0 190.9
CRISIL A3/ India Ratings and Research Private 2020-21 5,043.2 1,290.0
Limited (India Ratings) A3/ICRA A3/Acuite A3
2021-22 7,624.2 2,031.0
(as applicable) and;
2022-23 25,355.6 21,211.7
f) Banks should be sufficiently confident about
Total 40,511.4 24,802.7
the market liquidity of the security.
9. MARKET RISK IN TRADING BOOK
viii. Units of Mutual Funds regulated by the securities
regulator of the jurisdiction of the bank’s operation Market risk refers to the uncertainty of future
mutual funds where: earnings resulting from changes in interest
rates, foreign exchange rates, market prices and
a) a price for the units is publicly quoted daily volatilities. The Bank assumes market risk in its
i.e., where the daily NAV is available in public lending and deposit taking businesses and in its
domain; and investment activities, including position taking and
trading. The market risk is managed in accordance
b) Mutual fund is limited to investing in the with the investment policies, which are approved
by the Board. These policies ensure that operations
instruments listed in this paragraph.
in securities, foreign exchange and derivatives are
conducted in accordance with sound and acceptable
ix. Re-securitisations, irrespective of any credit ratings, business practices and are as per the extant
are not eligible financial collateral. regulatory guidelines, laws governing transactions
(` million) in financial securities and the financial environment.
Market Risk in Trading Book is assessed as per the
Particular As on Standardised Duration approach. The capital charge
March 31, 2023 for Held for Trading (HFT) and Available for Sale
Total exposure covered by 58,476.7 (AFS) portfolios is computed as per Reserve Bank
eligible financial collateral after of India prudential guidelines.
application of applicable haircuts
Total exposure covered by -
guarantees/credit derivatives

180 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Market risk management objectives: of the Board. The Bank also periodically reports
to its regulator in compliance with regulatory
The objectives of market risk management are requirements.
as follows:
• Management of liquidity Measurement:- The Bank has devised various
risk metrics for measuring market risk. These are
• Management of interest rate risk and exchange
reported to Asset Liability Management Committee
rate risk.
by Market Risk Management Department. Some of
• Proper classification and valuation of investment the risk metrics adopted by the Bank for monitoring
portfolio its risks are Value-at-Risk, Earnings at Risk, Modified
• Adequate and proper reporting of investments Duration, Stop Loss limits amongst others
and derivative products
Capital requirements for market risk
• Compliance with regulatory requirements (` million)


Structure and organisation of the market Particulars As on
risk management function: March 31, 2023
• Interest Rate Risk 187.4
The Board, through Risk Management Committee,
approves the policies with regard to identification, • Foreign Exchange Risk 54.0
measurement and control of market risks (Interest (Including gold)
Rate Risk and Foreign Exchange Risk) and Liquidity • Equity Risk 115.8
Risk. Market Risk department is an independent Capital requirement for Market Risk 357.2
function. The Market Risk Department exercises
independent control over the process of market risk
10. OPERATIONAL RISK
management and recommends changes in processes
and methodologies for measuring Market Risk. Operational risk is defined as the risk of loss resulting
from inadequate or failed internal processes, people
Strategies and processes: and systems or from external events. Operational
risk includes legal risk but excludes strategic and
To comply with the regulatory guidelines and to reputation risks.
have independent control groups there is clear
functional separation of: The Bank has put in place a Board approved
• Trading (Front office) Operational Risk Management Policy which outlines
overall framework for management of Operational
• Monitoring and control (Middle office) and Risk. The Bank has identified Key Operational Risk
• Settlements (Back office) Indicators (KORIs) across various units, which are
measured, monitored regularly and reported to

The strategy/guidelines for controlling Operational Risk Management Committee (ORCO)
on monthly basis. The Bank has a robust system of
market risk include:
reporting Operational Risk events across various
• Direct involvement of experienced line management units through identified Operational Risk Officers,
• Stringent controls and limits who are given adequate training to identify and
report such events as and when they occur. The
• Strict segregation of front, middle and back office Bank has a very effective system of recording and
duties reporting operational losses booked. The Bank
• Comprehensive periodical reporting of positions also collects qualitative data on self-assessment of
operational risk faced by various units through Risk
• Regular independent reviews of all controls and Control Self-Assessment (RCSA) exercise.
limits
The Bank has implemented Periodic Risk
• Rigorous testing and auditing of all pricing, trading
Identification and Controls Evaluation (PRICE)
and risk management system with a view to develop policy framework
for identification and documented plan to mitigate

The scope and nature of risk reporting and various risks in the Bank. The PRICE system is
measurement systems: expected to provide a robust overview of various
risks being identified proactively that remain un-
Reporting:- The Bank periodically reports on the mitigated. The PRICE system is pivotal in continuous
various investments and their related risk measures assessment of our risk and control environment and
to the senior management and the committees prioritise our remedial efforts based on risk/impact.

Annual Report 2022-23 | 181

DCB Bank Limited

The Bank manages Operational Risk by way of of the assets and liabilities, recommendation of risk
adopting best practices in processes as well as policies, setting up of prudential limits to manage
products. All the new and existing process are the risks and ensuring compliance with the limits set
subjected to rigorous review by Management by the Board. The ALM policy of the Bank includes
Committee for Approval of Process (MCAP), the prudential limits on interest rate risk, liquidity
which comprises of senior management personnel risk, foreign exchange risk and equity risk.
with diversified experience in banking. Utmost
importance is given on communication and Market Risk Management Department is responsible
understanding of processes at transactional level for monitoring the limits laid down in the ALM Policy
and compliance to same are monitored through through various reports. These reports are prepared
effective internal audits. at regular intervals and exceptions/deviations are
reported to the ALCO/RMC, as may be required by
The Bank understands the criticality of business the ALM policy.
continuity in the event of any undesirable /
unforeseen incident and has put in place an Risk measurement and reporting framework:
exhaustive Business Continuity Plan (BCP) in
place which is subject to periodic drills. The Bank As a part of its regular activities, ALCO manages
has robust Information Technology set up with the impact of the interest rate risk in banking book,
Disaster Recovery (DR) site for critical functions through various limits, reports and tools such
and backups. Further there is a strict adherence to as interest rate sensitive gaps, Earnings at risk
Information Security Policy across the Bank. analysis, duration gap analysis, stress testing, etc.
detailed as follows:
As per the mandate from RBI, the Bank is following
the Basic Indicator Approach (BIA) for assessment Interest rate sensitivity gap:
of Operational Risk Capital. The Bank has taken
quantitative and qualitative steps in view of moving The interest rate gap risk, at any given date, is the
towards advanced approaches as prescribed by RBI. risk arising from the mismatches in the assets and
liabilities over the different time intervals. These
Capital requirement for operational risk as per Basic mismatches or gaps are arrived at after matching
Indicator Approach (BIA) as on March 31, 2023 is rate sensitive assets and rate sensitive liabilities in
` 2,522.7 million. the particular time bucket taking into account all
assets and liabilities (including off Balance Sheet
11. INTEREST RATE RISK IN BANKING BOOK exposure). The rate sensitive assets and liabilities are
grouped in the buckets as per the residual maturity
Interest Rate Risk in the Banking Book or re-pricing date, whichever is earlier and is reported
(IRRBB): on monthly basis. The gap indicates whether net
interest income is positively or negatively impacted
Interest rate risk is the potential change in Net by a change in interest rates and the magnitude of
Interest Income (NII) or Economic Value of Equity the gap approximates the change in net interest
(Balance Sheet impact), caused by unexpected income for any given interest rate shift. Limits are
changes in market interest rates. Since NII or Net fixed on individual gaps.
Interest Margin (NIM) of Bank is dependent on the
movements of interest rates, any mismatches or Earnings at Risk Analysis (EaR):
gaps in the cash-flows on re-pricing dates exposes
Bank’s NII or NIM to interest rate risk. Interest Rate The gaps in the report indicates whether the Bank is
Risk in Banking Book results from an unavoidable in a position to benefit from rising interest rates by
position or gap arising from Bank’s normal day to having a positive gap (RSA > RSL) or whether it is
day business by holding assets and liabilities in in a position to benefit from declining interest rates
different maturities and different re-pricing dates. by a negative gap (RSL >RSA). The Bank monitors
the Earnings at Risk on NII for 1% change in interest
Risk management framework and monitoring: rates on the open periodic gaps.

The Board of the Bank, through Risk Management Stress testing:

Committee (RMC), has overall responsibility for
management of risks and it sets limits and policies The Bank measures the impact on NIM/ EaR after
for management of liquidity risk, market risk taking into account various possible movement
including foreign exchange, interest rate and equity in interest rates across tenor and impact on the
risk. The Asset Liability Management Committee earnings is calculated for each of these scenarios.
(ALCO), a strategic decision making body These reports are prepared on a quarterly basis for
constituted by Board, headed by Managing Director measurement of interest rate risk.
and comprising of senior executives of the Bank is
responsible for deciding the mix and maturity profile

182 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Duration gap analysis: 12. General disclosures for exposures related to

counterparty credit risk
Movement in the interest rates also have a long-term
impact on the market value of equity of the Bank, as Counterparty exposure
the economic value of the Bank’s assets, liabilities and
off-Balance Sheet positions get affected. Duration is a Counterparty credit risk in case of derivative
measure of interest rate sensitivity of assets, liabilities
contracts arises from the forward contracts. The
and also equity. It may be defined as the percentage
change in the market value of an asset or liability subsequent credit risk exposures depend on the
(or equity) for a given change in interest rates. Thus value of underlying market factors (e.g., interest
Duration Gap Analysis measures by how much the rates and foreign exchange rates), which can be
market value of equity of a firm would change for the volatile and uncertain in nature. The Bank does not
possible change in the interest rates. Forward transaction and interest rate future.

The following tables show the impact on NII and Credit limits
economic value of equity for a given change in the
interest rates. The impact is calculated assuming The credit limit for counterparty bank is fixed based
parallel shifts in the yield curve across all time
on their financial performance as per the latest
buckets.
audited financials. Various financial parameters
i) Impact on NII: such as NPA ratios, liquidity ratios, etc are taken
(` million) into consideration while assigning the limit. Credit
exposure is monitored daily to ensure it does not
Currency Changes in interest rates (in bps)
exceed the approved credit limit. These credit limits
(100) (50) 50 100
are set on the notional exposure basis.
INR (545.4) (272.7) 272.7 545.4
Credit exposures on forward contracts
USD (25.2) (12.6) 12.6 25.2
JPY 0.0 0.0 0.0 0.0 The Bank enters into the forward contracts in
GBP 0.1 0.1 (0.1) (0.1) the normal course of business for positioning
EUR (0.9) (0.5) 0.5 0.9 and arbitrage purposes, as well as for our own
Total (571.4) (285.7) 285.7 571.4 risk management needs, including mitigation of
interest rate and foreign currency risk. Derivative
ii) Impact on economic value of equity: exposures are calculated according to the current
(` million) exposures method.
Changes in interest rates (in bps)
Currency (100) (50) 50 100
INR 3,115.5 1,557.8 (1,557.8) (3,115.5)
* No major exposure in foreign currencies

Credit exposure as on March 31, 2023

(` million)

Notional Amount Gross positive fair value of Potential future exposure Total credit exposure
contracts
Forward contracts 34,416.3 92.5 901.3 993.8

Annual Report 2022-23 | 183

DCB Bank Limited

DF-11: Composition of Capital

(` million)

Common Equity Tier 1 capital: instruments and reserves Ref No.

1 Directly issued qualifying common share capital plus related stock surplus 16,815.50 A=a1+a2
(securities premium)
2 Retained earnings 13,459.42 B=b1-b2
3 Accumulated other comprehensive income (and other reserves) 12,743.49 C=c1+c2+c3+c4-
c5+c6
4 Directly issued capital subject to phase out from CET1 (only applicable to non- -
joint stock companies)
5 Common share capital issued by subsidiaries and held by third parties (amount -
allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 43,018.41
Common Equity Tier 1 capital: regulatory adjustments
7 Prudential valuation adjustments 175.38
8 Goodwill (net of related tax liability) -
9 Intangibles (net of related tax liability) -
10 Deferred tax assets -
11 Cash-flow hedge reserve -
12 Shortfall of provisions to expected losses -
13 Securitisation gain on sale -
14 Gains and losses due to changes in own credit risk on fair valued liabilities -
15 Defined-benefit pension fund net assets -
16 Investments in own shares (if not already netted off paid-in capital on reported -
balance sheet)
17 Reciprocal cross-holdings in common equity -
18 Investments in the capital of banking, financial and insurance entities that are -
outside the scope of regulatory consolidation, net of eligible short positions,
where the bank does not own more than 10% of the issued share capital (amount
above 10% threshold)
19 Significant investments in the common stock of banking, financial and insurance -
entities that are outside the scope of regulatory consolidation, net of eligible
short positions (amount above 10% threshold)
20 Mortgage servicing rights (amount above 10% threshold) -
21 Deferred tax assets arising from temporary differences (amount above 10% -
threshold, net of related tax liability)
22 Amount exceeding the 15% threshold -
23 of which: significant investments in the common stock of financial entities -
24 of which: mortgage servicing rights -
25 of which: deferred tax assets arising from temporary differences -
26 National specific regulatory adjustments (26a+26b+26c+26d) -
26a of which: Investments in the equity capital of unconsolidated insurance -
subsidiaries

184 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

26b of which: Investments in the equity capital of unconsolidated non-financial -

subsidiaries
26c of which: Shortfall in the equity capital of majority owned financial entities which -
have not been consolidated with the bank
26d of which: Unamortised pension funds expenditures -
27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient -
Additional Tier 1 and Tier 2 to cover deductions
28 Total regulatory adjustments to Common equity Tier 1 175.38
29 Common Equity Tier 1 capital (CET1) 42,843.03
Additional Tier 1 capital: instruments
30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus -
(securities premium) (31+32)
31 of which: classified as equity under applicable accounting standards (Perpetual -
Non-Cumulative Preference Shares)
32 of which: classified as liabilities under applicable accounting standards -
(Perpetual debt Instruments)
33 Directly issued capital instruments subject to phase out from Additional Tier 1 -
34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) -
issued by subsidiaries and held by third parties (amount allowed in group AT1)
35 of which: instruments issued by subsidiaries subject to phase out -
36 Additional Tier 1 capital before regulatory adjustments -
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments -
38 Reciprocal cross-holdings in Additional Tier 1 instruments -
39 Investments in the capital of banking, financial and insurance entities that are -
outside the scope of regulatory consolidation, net of eligible short positions,
where the bank does not own more than 10% of the issued common share capital
of the entity (amount above 10% threshold)
40 Significant investments in the capital of banking, financial and insurance entities -
that are outside the scope of regulatory consolidation (net of eligible short
positions)
41 National specific regulatory adjustments (41a+41b) -
41a of which: Investments in the Additional Tier 1 capital of unconsolidated insurance -
subsidiaries
41b of which: Shortfall in the Additional Tier 1 capital of majority owned financial -
entities which have not been consolidated with the bank
42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to -
cover deductions
43 Total regulatory adjustments to Additional Tier 1 capital -
44 Additional Tier 1 capital (AT1) -
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44) 42,843.03

Annual Report 2022-23 | 185

DCB Bank Limited

Tier 2 capital: instruments and provisions

46 Directly issued qualifying Tier 2 instruments plus related stock surplus 3,000.00 d
47 Directly issued capital instruments subject to phase out from Tier 2 -
48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) -
issued by subsidiaries and held by third parties (amount allowed in group Tier 2)
49 of which: instruments issued by subsidiaries subject to phase out -
50 Provisions 3,689.78 E=e1+e2+e3-e4
51 Tier 2 capital before regulatory adjustments 6,689.78
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments -
53 Reciprocal cross-holdings in Tier 2 instruments -
54 Investments in the capital of banking, financial and insurance entities that are -
outside the scope of regulatory consolidation, net of eligible short positions,
where the bank does not own more than 10% of the issued common share capital
of the entity (amount above the 10% threshold)
55 Significant investments in the capital banking, financial and insurance entities that -
are outside the scope of regulatory consolidation (net of eligible short positions)
56 National specific regulatory adjustments (56a+56b) -
56a of which: Investments in the Tier 2 capital of unconsolidated insurance subsidiaries -
56b of which: Shortfall in the Tier 2 capital of majority owned financial entities which -
have not been consolidated with the bank
57 Total regulatory adjustments to Tier 2 capital -
58 Tier 2 capital (T2) 6,689.78
59 Total capital (TC = T1 + T2) (45 + 58) 49,532.81
60 Total risk weighted assets (60a + 60b + 60c) 2,82,213.20
60a of which: total credit risk weighted assets 2,46,214.20
60b of which: total market risk weighted assets 4,465.40
60c of which: total operational risk weighted assets 31,533.60
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of risk weighted assets) 15.18%
62 Tier 1 (as a percentage of risk weighted assets) 15.18%
63 Total capital (as a percentage of risk weighted assets) 17.55%
64 Institution specific buffer requirement (minimum CET1 requirement plus 8.00%
capital conservation plus countercyclical buffer requirements plus G-SIB buffer
requirement and D-SIB buffer requirement, expressed as a percentage of risk
weighted assets)
65 of which: capital conservation buffer requirement 2.50%
66 of which: bank specific countercyclical buffer requirement -
67 of which: higher of G-SIB and D-SIB buffer requirement -
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted 7.18%
assets)

186 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

National minima (if different from Basel III)

69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 5.50%
70 National Tier 1 minimum ratio (if different from Basel III minimum) 7.00%
71 National total capital minimum ratio (if different from Basel III minimum) 9.00%
Amounts below the thresholds for deduction (before risk weighting)
72 Non-significant investments in the capital of other financial entities -
73 Significant investments in the common stock of financial entities -
74 Mortgage servicing rights (net of related tax liability) -
75 Deferred tax assets arising from temporary differences (net of related tax liability) -
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to 4,217.67
standardised approach (prior to application of cap)
77 Cap on inclusion of provisions in Tier 2 under standardised approach 3,689.78
78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal -
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach -

Notes to the Template

Row No. Particular (` in
of the million)
template
10 Deferred tax assets associated with accumulated losses -
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred -
tax liability
Total as indicated in row 10 -
19 If investments in insurance subsidiaries are not deducted fully from capital and instead -
considered under 10% threshold for deduction, the resultant increase in the capital of bank
of which: Increase in Common Equity Tier 1 capital -
of which: Increase in Additional Tier 1 capital -
of which: Increase in Tier 2 capital -
26b If investments in the equity capital of unconsolidated non-financial subsidiaries are not -
deducted and hence, risk weighted then:
(i) Increase in Common Equity Tier 1 capital -
(ii) Increase in risk weighted assets -
50 Eligible Provisions included in Tier 2 capital 3,689.78
Eligible Revaluation Reserves included in Tier 2 capital -
Total of row 50 3,689.78

Annual Report 2022-23 | 187

DCB Bank Limited

Table DF-12: Composition of Capital- Reconciliation Requirements

Step 1  (` million)
Balance sheet Balance sheet
as in financial under regulatory
statements scope of
As on Mar. 31, 2023 consolidation
As on Mar. 31, 2023
A Capital & Liabilities
i Paid-up Capital 3,115.02
Reserves & Surplus 42,515.33
Minority Interest -
Employee Stock Options Outstanding 30.79
Total Capital 45,661.14
ii Deposits 4,12,389.07
of which: Deposits from banks 40,991.46
of which: Customer deposits 3,71,397.61
of which: Other deposits (pl. specify) -
iii Borrowings 41,181.20
of which: From RBI 1,000.00
of which: From banks 250.00
of which: From other institutions & agencies 36,931.20
of which: Others (pl. specify) Borrowings from outside India -
of which: Capital instruments 3,000.00
iv Other liabilities & provisions 24,427.28
Total 5,23,658.69
B Assets
i Cash and balances with Reserve Bank of India 20,306.04
Balance with banks and money at call and short notice 3,378.20
ii Investments: 1,25,824.57
of which: Government securities 99,279.80
of which: Other approved securities -
of which: Shares 225.99
of which: Debentures & Bonds 1,236.73
of which: Subsidiaries / Joint Ventures / Associates -
of which: Others (Commercial Papers, Mutual Funds, Certificate of 25,082.05
Deposits, PTCs, SRs etc.)
iii Loans and advances 3,43,807.42
of which: Loans and advances to banks 0.00
of which: Loans and advances to customers 3,43,807.42
iv Fixed assets 8,262.68
v Other assets 22,079.78
of which: Goodwill and intangible assets -
of which: Deferred tax assets (Net) 1,599.88
vi Goodwill on consolidation -
vii Debit balance in Profit & Loss account -
Total Assets 5,23,658.69

188 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Step 2
(` million)
Balance sheet Balance sheet Ref
as in financial under regulatory No.
statements scope of
As on Mar. 31, 2023 consolidation
As on Mar. 31, 2023
A Capital & Liabilities
i Paid-up Capital 3,115.02 a1
Reserves & Surplus 42,515.33
of which:
Securities Premium 13,700.48 a2
Balance in Profit & Loss account 13,848.80 b1
of which:
Unallocated Surplus 9,193.21
Current period profits not reckoned for Capital Adequacy 389.38 b2
Statutory Reserve 8,205.28 c1
Capital Reserve 1,431.06 c2
Special Reserve 1,740.19 c3
Revaluation Reserve 2,969.26 c4
of which
Not reckoned for Capital Adequacy purposes 1,633.09 c5
Investment Reserve 8.16 e1
Investment Fluctuation Reserve 612.10 e2
Employee Stock Options Outstanding 30.79 c6
Minority Interest -
Total Capital 45,661.14
ii Deposits 4,12,389.07
of which: Deposits from banks 40,991.46
of which: Customer deposits 3,71,397.61
of which: Other deposits (pl. specify) -
iii Borrowings 41,181.20
of which: From RBI 1,000.00
of which: From banks 250.00
of which: From other institutions & agencies 36,931.20
of which: Others (pl. specify) Borrowings from outside India -
of which: Capital instruments 3,000.00 d
iv Other liabilities & provisions 24,427.28
of which: Provision for Standard Assets 3,597.41 e3
Not reckoned for Capital Adequacy purposes 527.89 e4
of which: DTLs related to goodwill -
of which: DTLs related to intangible assets -
Total 5,23,658.69
B Assets
i Cash and balances with Reserve Bank of India 20,306.04
Balance with banks and money at call and short notice 3,378.20
ii Investments 1,25,824.57
of which: Government securities 99,279.80
of which: Other approved securities -
of which: Shares 225.99

Annual Report 2022-23 | 189

DCB Bank Limited

Balance sheet Balance sheet Ref

as in financial under regulatory No.
statements scope of
As on Mar. 31, 2023 consolidation
As on Mar. 31, 2023
of which: Debentures & Bonds 1,236.73
of which: Subsidiaries / Joint Ventures / Associates -
of which: Others (Commercial Papers, Mutual Funds, 25,082.05
Certificate of Deposits, PTC, SRs etc.)
iii Loans and advances 3,43,807.42
of which: Loans and advances to banks 0.00
of which: Loans and advances to customers 3,43,807.42
iv Fixed assets 8,262.68
v Other assets 22,079.78
of which: Goodwill and intangible assets Out of which: -
Goodwill -
Other intangibles (excluding MSRs) -
Deferred tax assets (Net) 1,599.88
vi Goodwill on consolidation -
vii Debit balance in Profit & Loss account -
Total Assets 5,23,658.69

Step 3
(` million)
Common Equity Tier 1 capital: instruments and reserves
Component Source based on
of regulatory reference numbers/
capital letters of the balance
reported by sheet under the
bank regulatory scope of
consolidation from step 2
1 Directly issued qualifying common share (and equivalent for 16,815.50 A=a1+a2
non-joint stock companies) capital plus related stock surplus
2 Retained earnings 13,459.42 B=b1-b2
3 Accumulated other comprehensive income (and other reserves) 12,743.49 C=c1+c2+c3+c4-c5+c6
4 Directly issued capital subject to phase out from CET1 (only -
applicable to non-joint stock companies)
5 Common share capital issued by subsidiaries and held by third -
parties (amount allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 43,018.41
7 Prudential valuation adjustments 175.38
8 Goodwill (net of related tax liability) -

190 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

Main Features of Regulatory Capital Instruments

Sr. Particulars Equity Shares Sub-Ordinated Debt

No.
1 Issuer DCB BANK DCB BANK LIMITED
LIMITED
2 Unique identifier (e.g. CUSIP, ISIN or Bloomberg INE503A01015 INE503A08051
identifier for private placement)
3 Governing law(s) of the instrument Indian Law Indian Law
Regulatory treatment
4 Transitional Basel III rules Common Equity Tier 2
Tier 1
5 Post-transitional Basel III rules Common Equity Tier 2
Tier 1
6 Eligible at solo/group/ group & solo Solo Solo
7 Instrument type Common Shares Tier 2 Debt Instruments
8 Amount recognised in regulatory capital (` in ` 3,115 Million ` 3,000 Million
million, as of most recent reporting date)
9 Par value of instrument ` 10 per share ` 3,000 Million and each debenture of `
10 Million
10 Accounting classification Shareholder's Liability
Equity
11 Original date of issuance Various* 28.03.2023
12 Perpetual or dated Perpetual Dated
13 Original maturity date No Maturity 28.03.2033
14 Issuer call subject to prior supervisory approval No Yes
15 Optional call date, contingent call dates and NA Call option exercisable only if the
redemption amount instrument has run for five years; First
call date is 28.03.2028; Call option can be
exercised only with the prior approval of
RBI. These Bonds are redeemable at Par.
16 Subsequent call dates, if applicable NA Any coupon payment date after
28.03.2028, with the prior approval of RBI.
Coupons / dividends
17 Fixed or floating dividend/coupon NA Fixed
18 Coupon rate and any related index NA 9.35% per annum
19 Existence of a dividend stopper NA No
20 Fully discretionary, partially discretionary or Fully discretionary Partially discretionary
mandatory
21 Existence of step up or other incentive to No No
redeem
22 Noncumulative or cumulative Non-cumulative Cumulative
23 Convertible or non-convertible NA Non-convertible
24 If convertible, conversion trigger(s) NA NA
25 If convertible, fully or partially NA NA
26 If convertible, conversion rate NA NA
27 If convertible, mandatory or optional conversion NA NA
28 If convertible, specify instrument type NA NA
convertible into
29 If convertible, specify issuer of instrument it NA NA
converts into
30 Write-down feature No Yes
31 If write-down, write-down trigger(s) NA PONV Trigger
32 If write-down, full or partial NA Fully or Partially
33 If write-down, permanent or temporary NA Permanent

Annual Report 2022-23 | 191

DCB Bank Limited

Sr. Particulars Equity Shares Sub-Ordinated Debt

No.
34 If temporary write-down, description of write- NA NA
up mechanism
35 Position in subordination hierarchy in liquidation NA The Claims of debenture holder (s) shall be:
(specify instrument type immediately senior to (i) Senior to the claims of investors in
instrument) instruments eligible for inclusion in Tier 1
Capital of the Bank and
(ii) Subordinate to the claims of all
depositors and general creditors of the Bank
36 Non-compliant transitioned features No No
37 If yes, specify non-compliant features NA NA
* Date of allotment of equity shares are aviable on the Bank's website at following link: http://www.dcbbank.com/pdfs/
DCB_Capital_Structure_of_the_Bank_as_on_31st_March_2023.pdf

Table DF 17- Summary comparison of accounting assets vs. leverage ratio exposure measure

Leverage Ratio:
The leverage ratio is calibrated to act as a credible supplementary measure to the risk based capital requirements.

The Basel III leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the
denominator), with this ratio expressed as a percentage.

Capital Measure (Tier 1 Capital)

Leverage Ratio =
Exposure Measure

Summary comparison of accounting assets vs. leverage ratio exposure measure

Item (` Million)
1 Total consolidated assets as per published financial statements 5,23,658.69
2 Adjustment for investments in banking, financial, insurance or commercial entities that are -
consolidated for accounting purposes but outside the scope of regulatory consolidation
3 Adjustment for fiduciary assets recognised on the balance sheet pursuant to the operative -
accounting framework but excluded from the leverage ratio exposure measure
4 Adjustments for derivative financial instruments 993.80
5 Adjustment for securities financing transactions (i.e. repos and similar secured lending) 0.00
6 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off- 22,505.45
balance sheet exposures)
7 Other adjustments
8 Leverage ratio exposure 5,47,157.94

192 | Annual Report 2022-23

 Corporate Overview Management Reports Financial Statements

DF-18 Leverage ratio

Leverage ratio common disclosure template

Item Leverage ratio
framework
(` million)
On-balance sheet exposures
1 On-balance sheet items (excluding derivatives and SFTs, but including collateral) 5,23,658.69
2 (Asset amounts deducted in determining Basel III Tier 1 capital)
3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2) 5,23,658.69
Derivative exposures
4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation 92.49
margin)
5 Add-on amounts for PFE associated with all derivatives transactions 901.31
6 Gross-up for derivatives collateral provided where deducted from the balance sheet assets -
pursuant to the operative accounting framework
7 (Deductions of receivables assets for cash variation margin provided in derivatives -
transactions)
8 (Exempted CCP leg of client-cleared trade exposures) -
9 Adjusted effective notional amount of written credit derivatives -
10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) -
11 Total derivative exposures (sum of lines 4 to 10) 993.80
Securities financing transaction exposures
12 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions 0.00
13 (Netted amounts of cash payables and cash receivables of gross SFT assets) -
14 CCR exposure for SFT assets -
15 Agent transaction exposures -
16 Total securities financing transaction exposures (sum of lines 12 to 15) 0.00
Other off-balance sheet exposures
17 Off-balance sheet exposure at gross notional amount 52,759.23
18 (Adjustments for conversion to credit equivalent amounts) 30,253.78
19 Off-balance sheet items (sum of lines 17 and 18) 22,505.45
Capital and total exposures
20 Tier 1 capital 42,843.02
21 Total exposures (sum of lines 3, 11, 16 and 19) 5,47,157.94
Leverage ratio
22 Basel III leverage ratio (per cent) 7.83%

Notes
SFT : Securities Financing Transactions
PFE : Potential Future Exposure
CCP : Central Counterparty
CCR : Counterparty Credit Risk

Annual Report 2022-23 | 193

Notes
Notes
Notes
 Sustainable impact by DCB Bank
Corporate Social Responsibility, FY 2022-23

Tree plantation to increase

urban & rural green cover
1,01,120 trees

Oxygen produced Rain water harvested for

by trees sustainable livelihood

11,922 metric tonnes 99,84,00,000 liters

Reduction of Revival of village
carbon from the water bodies &
atmosphere ponds
2,528 metric tonnes 2,17,800 sq. ft.
Household biogas Waste recycled
produced promoting
circular economy
132 metric tonnes
251 metric tonnes
Methane green Sustainable livelihood
house gas created and lives
reduction impacted
72 metric tonnes 2,74,168 individuals

DCB Bank Limited

Printing and Stationery Department, 2nd Floor, A-1/E, Rashmi Park,
Sheetal Nagar, Telephone Exchange, Mira Road (E), Thane - 401107