RESULTS REVIEW 4QFY17 18 APR 2017 DCB...

RESULTS REVIEW 4QFY17 18 APR 2017

DCB Bank BUY

Strong core Yet again, DCB Bank (DCBB) performed well across parameters, with broad-based loan growth (+22%), a stable and superior NIM (~4%), healthy fee growth (+12% QoQ), controlled opex (+3% QoQ) and improving efficiencies (core C-I down 270bps QoQ).

The oplev was achieved despite 64 new branches in FY17 (14 in 4Q). CASA, as expected, dipped in 4Q to ~24.3% (down 150bps). However, retail deposits were stable at 77%. Tier I improved by ~50bps QoQ (11.9%). The reduction in SME GNPAs (-12%) and stable mortgage GNPAs (+7%) were encouraging.

Our FY18/19E numbers assume better NIMs, controlled opex and a fund raise (Rs 4bn QIP at Rs 170/sh). With healthy business momentum and asset quality under control, DCB’s recent run-up is sustainable. We remain BUYers of DCB’s multi-year growth story with a revised TP of Rs 197 (2.25x Mar-19E ABV of Rs 87.6)

Highlights of the quarter With lower reductions of Rs 483mn (-55% QoQ) and

stable slippages (Rs 742mn, 1.96% ann.), GNPAs were 12% higher QoQ at Rs 2.5bn (1.59%).

After eight stable quarters, corporate GNPAs jumped ~32% QoQ, led by a single exposure of Rs 210mn. We remain constructive on asset quality, given high granularity.

Despite a rise in low-yielding corporate loans, lower CASA and a drop in MCLR, DCBB reported a stable NIM of ~4% , another key positive. The healthy NII growth (+5% QoQ) and controlled opex (+3% QoQ, despite adding 14 branches), helped cut core C-I ~270bps QoQ to 60%. We expect core C-I to improve to ~58% by FY19E (vs. guidance of 55%).

Near term outlook : We expect the stock to remain range bound in the near term, given the recent runup (47% in the trailing three months). A fund raise is imminent in FY18.

Financial Summary (Rs mn) 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) FY16 FY17P FY18E FY19E Net Interest Income 2,203 1,687 30.6% 2,095 5.1% 6,195 7,971 9,890 12,113 PPOP 1,153 970 18.9% 1,093 5.6% 3,490 4,182 5,226 6,791 PAT 529 695 -24.0% 513 3.0% 1,945 1,997 2,476 3,278 EPS (Rs) 1.9 2.4 -24.2% 1.8 2.9% 6.8 7.0 8.0 10.6 RoAE (%)

11.9 10.8 10.4 11.1

RoAA (%)

1.10 0.93 0.92 1.01 Adj. BVPS (Rs)

57.8 63.9 77.9 87.6

P/ABV (x)

3.00 2.71 2.22 1.98 P/E (x)

25.3 24.7 21.4 16.6

Source: DCB Bank, HDFC sec Inst Research

INDUSTRY BANKS CMP (as on 17 Apr 2017) Rs 173 Target Price Rs 197 Nifty 9,139

Sensex 29,414

KEY STOCK DATA

Bloomberg DCBB IN

No. of Shares (mn) 285

MCap (Rs bn) / ($ mn) 49/767

6m avg traded value (Rs mn) 303

STOCK PERFORMANCE (%)

52 Week high / low Rs 183/87

3M 6M 12M

Absolute (%) 47.8 37.7 107.6

Relative (%) 39.8 31.4 92.8

SHAREHOLDING PATTERN (%)

Promoters 16.19

FIs & Local MFs 17.06

FPIs 23.55

Public & Others 43.21

Source : BSE

Darpin Shah [email protected] +91-22-6171-7328

Pranav Gupta [email protected] +91-22-6171-7337

HDFC securities Institutional Research is also available on Bloomberg HSLB <GO> & Thomson Reuters

DCB BANK : RESULTS REVIEW 4QFY17

Five Quarters At A Glance Rs mn 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY Growth QoQ Growth Net Interest Income 1,686.9 1,770.3 1,903.2 2,094.8 2,202.6 30.6% 5.1% Non-interest Income 614.5 601.3 616.2 641.1 635.9 3.5% -0.8% Treasury Income 40.0 172.0 116.0 125.0 41.0 2.5% -67.2% Operating Income 2,301.4 2,371.6 2,519.4 2,735.9 2,838.5 23.3% 3.8% Operating Expenses 1,331.3 1,444.3 1,510.6 1,643.4 1,685.1 26.6% 2.5% Pre Provision Profits 970.1 927.3 1,008.8 1,092.5 1,153.4 18.9% 5.6% Other Provisions 272.5 205.3 264.8 305.3 339.3 24.5% 11.1% PBT 697.6 722.0 744.0 787.2 814.1 16.7% 3.4% Provision For Tax 2.3 251.7 259.1 274.2 285.5 12313.0% 4.1% PAT 695.3 470.3 484.9 513.0 528.6 -24.0% 3.0% Balance Sheet Items/Ratios Deposits Rs bn 149.3 156.8 176.8 188.4 192.9 29.2% 2.4% CASA Deposits Rs bn 34.9 36.2 38.8 48.7 46.9 34.4% -3.7% Advances Rs bn 129.2 133.4 144.4 145.8 158.2 22.4% 8.5% CD Ratio (%) 86.6 85.1 81.6 77.4 82.0 -457 bps 459 bps CAR (%) 14.1 13.2 11.9 13.3 13.8 -35 bps 43 bps Tier I (%) 12.8 11.9 10.8 11.4 11.9 -92 bps 48 bps Profitability Yield On Advances (%) 12.4 12.2 12.0 12.0 12.0 -35 bps 2 bps Cost Of Deposits (%) 7.4 7.3 7.2 6.9 7.0 -38 bps 10 bps NIM (%) 4.1 4.1 4.0 4.0 4.0 -2 bps 9 bps Cost-Income Ratio (%) 57.8 60.9 60.0 60.1 59.4 152 bps -70 bps Tax Rate (%) 0.3 34.9 34.8 34.8 35.1 3474 bps 24 bps Asset quality Gross NPA (Rs mn) 1,974 2,313 2,554 2,279 2,542 28.8% 11.5% Net NPA (Rs mn) 975 1,157 1,209 1,089 1,244 27.7% 14.2% Gross NPAs (%) 1.5 1.7 1.8 1.6 1.6 8 bps 4 bps Net NPAs (%) 0.8 0.9 0.8 0.7 0.8 4 bps 5 bps Delinquency Ratio (%) 1.7 1.8 1.4 2.2 2.0 31 bps -22 bps Coverage Ratio Calc. (%) 50.6 50.0 52.7 52.2 51.1 44 bps -115 bps Coverage Ratio Reported (%) 77.6 75.3 75.4 75.6 73.8 -375 bps -184 bps

Change In Estimates

(Rs mn) FY18E FY19E

Old New Change Old New Change NII 9,511 9,890 4.0% 11755 12,113 3.0% PPOP 4,694 5,226 11.3% 5918 6,791 14.8% PAT 2,363 2,476 4.8% 2960 3,278 10.7% Adj. BVPS (Rs) 73.2 77.9 6.5% 81.5 87.6 7.4%

Source: HDFC sec Inst Research

In line with estimates, driven by 22% loan growth and a healthy NIM

Fees grew ~14/12% YoY/QoQ and misc. income jumped 47% QoQ

Controlled opex growth despite adding 64 branches during FY17 (14 during 4Q)

As expected, CASA declined marginally, after the surge in 3Q led by demonetisation

Broad-based growth across segments, Corp (+31%), Agri (+30%), Mortgages (+22%) and SME (+23%)

Segmental break up: Corp Rs 859mn (+32% QoQ), Mortgages Rs 717mn (+7% QoQ), SME Rs 324mn (-12% QoQ) and CV/CE stood at Rs 200mn (+14% QoQ)

Led by lower reductions of Rs 393mn and W/Os of Rs 90mn, slippages were stable QoQ at Rs 742mn; Slippages include one large corporate exposure of ~Rs 210mn

Stable NIM performance, a positive surprise

Factored fund raise of Rs 4bn at Rs 170/-

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Healthy loan growth across segments, CASA drops QoQ

DCBB’s loan growth remains healthy and broad based. In 4QFY17, loans grew ~22.4/8.5% YoY/QoQ, with a sharp jump of +31/9% YoY/QoQ in the corporate segment (16% of loans; +100bps QoQ). Post the fall in 3Q (owing to demonitisation), SME loans grew 18% QoQ (+22% YoY), to form 12% of the loans (+100bps QoQ).

The bank’s chosen segments, which are Mortgages (22/6% YoY/QoQ; ~43% of the total) and Agri (+30/15% YoY/QoQ; 17% of total loans), continued to show a healthy growth momentum.

On a small base, CV loans (4% share) reported highgrowth of 22/9% YoY/QoQ. We have factored in a loan CAGR of ~24% FY17-19E, which can provide an upside to our earnings estimates.

Post a sharp surge in 3Q, as expected, CASA declined ~4% QoQ (+34% YoY) to Rs 47bn, i.e. 24.3% of deposits (down 155bps QoQ). The share of retail and NRI deposits was largely stable at 77% and 7% respectively.

With a relatively faster growth in loans, the C-D ratio jumped 460bps QoQ to 82%.

Loan Growth Healthy At 22/8% YoY/QoQ Loan Mix: Mortgages Form ~43% Of The Book

Source: DCB Bank, HDFC sec Inst Research Source: DCB Bank, HDFC sec Inst Research

Healthy growth across segments, Corporate (+31%), Agri (+30%), Mortgages (+22%) and SME (+23%) Loan mix continues to be well-diversified and granular Healthy growth in retail deposits (up ~18% YoY) NRI deposits grew ~15% YoY to form ~7% of deposits As expected, the CASA ratio dropped to 24.3%, down 150bps sequentially

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Mortgages AIB Corporate SME+MSME Others

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NIM flat QoQ: A positive surprise DCBB has yet again surprised us with its NIM

performance, despite a rise in low-yielding corporate loans and a decline in the CASA proportion. DCBB’s NIM was stable QoQ at ~4% , a key positive factor. Its NIM was cushioned with a 10bps drop in CoF and steady yields.

Despite intense competition in the mortgage segment (43% of loans), a reduction in rates and lower proportion of CASA, DCBB’s NIM performance has been resilient. We have marginally revised our NIM assumptions to 3.9% over FY17-19E vs. 3.75% earlier.

Strong NII Growth Of 31% YoY NIM At 4.04%, Up 9bps Sequentially

Source: DCB Bank, HDFC sec Inst Research Source: DCB Bank, HDFC sec Inst Research

Non-interest Income Rs mn 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 Fees 240.0 267.0 280.0 253.0 309.0 307.0 336.0 299.0 351.0 361.0 395.0 379.0 422.0 403.0 452.0 % Loans 1.44 1.45 1.38 1.22 1.41 1.29 1.28 1.15 1.26 1.23 1.22 1.14 1.17 1.11 1.14 Treasury 9.0 21.0 26.0 43.0 40.0 126.0 68.0 284.0 52.0 45.0 40.0 172.0 116.0 125.0 41.0 Forex (5.0) 18.0 22.0 12.0 15.0 27.0 22.0 31.0 47.0 40.0 28.0 31.0 42.0 22.0 9.0 Others 29.0 22.0 7.0 36.9 6.0 20.0 36.7 17.2 37.0 26.0 151.5 19.3 36.2 91.1 133.9 Total 272.7 328.4 334.5 344.9 369.6 479.9 462.7 631.2 487.0 472.0 614.5 601.3 616.2 641.1 635.9 (%, YoY) (0.9) 13.6 1.1 (23.5) 35.5 46.1 38.3 83.0 31.8 (1.6) 32.8 (4.7) 26.5 35.8 3.5 Source: DCB Bank

NIM stood at 4.04%, up 9bps QoQ, driven by strong loan growth of ~22/9 YoY/QoQ NII for 4Q includes interest on a tax refund of a mere Rs 0.9mn vs. Rs 45.3mn in 3Q Treasury income dropped sharply and was in line with expectations Core fees jumped ~14/12% YoY/QoQ

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Sharp QoQ improvement in core C-I ratio DCBB’s branch expansion is on track. It added 64

branches and 105 ATMs in FY17 (14 branches and 19 ATMs in 4Q). Despite this, the bank’s opex grew ~27/2.5% YoY/QoQ in 4Q. However, with 31% growth in core earnings and a steady non-interest income, the core C-I ratio declined ~270bps QoQ to 60.2%, a key positive.

With plans for a calibrated branch expansion after doubling the network (310 branches by Oct-Dec-2017) and a tight leash on costs, we have lowered opex CAGR to ~22% from 24.5% earlier over FY17-

19E. Further, with a stable NIM, we expect core operational efficiencies to improve to ~58.5% (vs. management guidance of 55%) by FY19E.

The overall provisioning cost was higher at Rs 339mn (+25/11% YoY/QoQ) i.e. 93bps vs. 84bps QoQ and 88bps YoY. The provision cost includes sale to ARC provisions of ~Rs 17.4mn and higher floating and std. assets provisions (Rs 90mn). We have revised our provision cost assumptions higher to 77bps over FY17-19E.

Core C-I Drops 270bps QoQ Non-tax Provisions Up ~25/11% YoY/QoQ

Source: DCB Bank, HDFC Sec Inst Research Source: DCB Bank, HDFC Sec Inst Research

Despite an addition of 64 branches, DCBB’s core C-I ratio was up only ~140bps YoY (albeit down 270bps QoQ sequentially) The management has guided for a C-I ratio of 55% by the end of FY19 Non-tax provisions were higher at Rs 339mn (+11% QoQ; 93bps annu.)

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Marginal rise in GNPAs While slippages were lower sequentially (Rs 742mn

i.e. 1.96% vs. 2.19% QoQ), stress was visible in the corporate segment (one large exposure of Rs 210mn). After a steady performance for eight quarters, corporate GNPAs jumped ~32% QoQ to Rs 859mn (3.4% vs. 2.8% QoQ of corporate loans). On a smaller base, CV GNPA jumped 14% QoQ to Rs 200mn (3.2% of CV loans). On a positive note, SME GNPAs dipped ~12% QoQ (Rs 324mn; 1.7% vs. 2.3% QoQ of SME loans) and mortgage GNPAs grew ~7% QoQ (Rs 717mn, i.e. 1.05%)

With lower reductions of Rs 393mn (-27/45% YoY/QoQ) and W/Os of Rs 90mn, GNPAs jumped 11.5% QoQ to Rs 2.5bn (1.59%).

With a marginal drop of 180bps QoQ to 73.8%, NNPAs jumped ~14% QoQ to Rs 1.2bn (0.79%).

While the GNPAs have marginally risen in 4Q, we remain constructive on DCBB’s asset quality, given its astute approach, granular book and lower exposure to stressed sectors. We have conservatively factored in slippages of ~1.7% over FY17-19E.

Slippages At 1.96% Vs. 2.19% Annu. QoQ GNPAs At 1.59%, Reported PCR 73.8%

Source : DCB Bank Source : DCB Bank

Segment-wise GNPAs

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FY17 PL 604 589 235 3 3 2 3 2 1 0 0 0 0 0 0 0 CV/CE 246 242 239 36 44 60 76 88 70 74 89 92 111 134 176 200 Corp. 569 553 542 154 154 267 261 919 1016 919 861 861 861 861 652 859 SME 592 683 702 873 900 900 927 273 284 486 522 245 279 367 368 324 Mortgages 219 243 298 240 268 294 346 362 349 466 511 464 626 743 669 717 Others 34 41 63 13 123 165 179 30 157 78 51 24 32 72 90 76 Agri 0 0 0 66 0 0 0 187 188 220 315 288 404 377 324 366 Source: DCB Bank

Slippages at 1.96% annu. were driven by the corporate segment (includes one large exposure of Rs 210mn) Absolute GNPA’s were up ~12% QoQ, as recoveries were slower (down from Rs 641mn to Rs 225mn) GNPAs in the Corp segment were up ~32% QoQ, SME was down ~12% QoQ CV/CE GNPA further increased ~14% QoQ to Rs 200mn

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Sequentially Stable RoAA At 0.9%

Source: Bank, HDFC sec Inst Research

P/ABV Band Chart

Source: Bank, HDFC sec Inst Research

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Peer Valuations

BANK Mcap

(Rs bn) CMP (Rs)

Rating TP

(Rs) ABV (Rs) P/E (x) P/ABV (x) ROAE (%) ROAA (%)

FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E ICICIBC # 1,644 282 BUY 333 115 131 148 13.0 12.3 9.9 2.01 1.69 1.43 10.7 9.8 10.8 1.40 1.30 1.37 KMB # 1,627 888 BUY 987 135 155 179 40.9 32.7 26.0 5.56 4.71 3.95 13.2 14.6 15.6 1.65 1.74 1.81 AXSB 1,201 502 NEU 520 195 222 260 32.7 19.8 11.8 2.58 2.26 1.93 6.7 10.3 15.5 0.66 0.96 1.38 IIB 854 1,435 BUY 1,552 325 379 443 29.1 23.0 18.8 4.41 3.79 3.24 15.9 17.4 18.3 1.88 1.92 1.89 FB 159 93 BUY 101 44 51 56 20.3 16.2 13.2 2.09 1.83 1.64 9.3 10.8 12.1 0.77 0.81 0.84 CUB 90 150 BUY 175 52 61 70 17.8 15.6 13.5 2.86 2.47 2.15 15.4 15.5 15.7 1.49 1.47 1.47 DCBB 50 173 BUY 197 64 73 82 24.9 20.9 16.6 2.69 2.37 2.12 10.7 11.4 12.5 0.93 0.90 0.91 SBIN # 2,250 290 BUY 328 112 129 148 16.6 13.4 10.4 1.91 1.62 1.34 7.4 8.3 9.6 0.43 0.46 0.53 BOB 406 176 BUY 220 89 123 157 20.5 11.3 8.5 1.97 1.43 1.12 5.4 9.1 11.1 0.29 0.51 0.63 Equitas 56 166 BUY 187 61 63 67 29.4 40.8 25.2 2.71 2.62 2.47 10.6 5.9 8.9 2.47 1.34 1.64 Ujjivan 47 398 NEU 390 141 160 184 28.1 21.1 16.1 2.83 2.49 2.16 11.7 12.5 14.4 2.49 2.57 2.63

Source: Company, HDFC sec Inst Research, # Adjusted for subsidiaries value

Page | 8


Income Statement (Rs mn) FY15 FY16 FY17E FY18E FY19E Interest Earned 14,224 16,985 20,762 25,500 31,035 Interest Expended 9,142 10,790 12,791 15,610 18,922 Net Interest Income 5,082 6,195 7,971 9,890 12,113 Non-interest Income 1,657 2,205 2,495 3,040 3,763 Fee Income (CEB) 1,193 1,405 1,657 2,063 2,543 Treasury Income 277 423 454 550 750 Total Income 6,739 8,400 10,465 12,929 15,876 Total Operating Exp 3,965 4,909 6,283 7,703 9,085 Employee Expense 1,960 2,451 3,080 4,050 4,713 PPOP 2,774 3,490 4,182 5,226 6,791 Provisions & Contingencies 694 879 1,115 1,474 1,824 Prov. For NPAs (Incl. Std Prov.) 590 760 1,040 1,349 1,649 PBT 2,080 2,611 3,067 3,752 4,967 Provision for Tax 168 666 1,070 1,276 1,689 PAT 1,912 1,945 1,997 2,476 3,278 Source: Bank, HDFC sec Inst Research

Balance Sheet (Rs mn) FY15 FY16 FY17E FY18E FY19E SOURCES OF FUNDS

Share Capital 2,852 2,860 2,869 3,104 3,104 Reserves 13,034 15,062 19,179 24,937 27,853 Shareholders' Funds 15,886 17,922 22,049 28,041 30,957 Savings 19,040 23,127 33,535 41,918 52,817 Current 10,461 11,771 13,357 14,960 17,055 Term Deposit 96,591 114,361 146,000 181,481 219,868 Total Deposits 126,091 149,260 192,892 238,360 289,740 Borrowings 11,638 11,479 12,758 15,150 17,054 Other Liabilities 7,708 12,525 12,765 14,679 16,881 Total Liabilities 161,323 191,185 240,464 296,230 354,633

APPLICATION OF FUNDS

Cash & Bank Balance 7,192 8,916 11,925 14,939 14,423 Investments 39,622 43,333 58,179 69,760 81,962 G-Secs 34,749 39,855 47,711 57,765 68,768 Advances 104,651 129,214 158,176 198,321 244,548 Fixed Assets 2,367 2,480 4,886 5,130 5,386 Other Assets 7,492 7,242 7,298 8,080 8,313 Total Assets 161,323 191,185 240,464 296,230 354,633 Source: Bank, HDFC sec Inst Research

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Key Ratios FY15 FY16 FY17E FY18E FY19E VALUATION RATIOS

EPS (Rs) 6.8 6.8 7.0 8.0 10.6 Earnings Growth (%) 26.3 1.7 2.7 24.0 32.4 BVPS (Rs) 56.2 63.0 77.2 90.7 100.2 Adj. BVPS (Rs) 50.6 57.8 63.9 77.9 87.6 ROAA (%) 1.32 1.10 0.93 0.92 1.01 ROAE (%) 14.2 11.9 10.8 10.4 11.1 P/E (x) 25.5 25.3 24.7 21.4 16.6 P/ABV (x) 3.42 3.00 2.71 2.22 1.98 P/PPOP (x) 17.8 14.2 11.9 10.4 8.1 Dividend Yield (%) - - 0.3 0.4 0.6 PROFITABILITY

Yield On Advances (%) 11.8 11.6 11.5 11.3 11.2 Yield On Investment (%) 6.9 7.4 7.8 7.7 7.7 Cost Of Deposits (%) 7.3 7.3 7.1 6.9 6.9 Core Spread (%) 4.5 4.2 4.4 4.4 4.3 NIM (%) 3.7 3.7 3.9 3.9 3.9 OPERATING EFFICIENCY

Cost/Avg. Asset Ratio (%) 2.7 2.8 2.9 2.9 2.8 Cost-Income Ratio (Ex. Treasury) 61.4 61.5 62.8 62.2 60.1 BALANCE SHEET STRUCTURE

Loan Growth (%) 28.6 23.5 22.4 25.4 23.3 Deposit Growth (%) 22.1 18.4 29.2 23.6 21.6 C/D Ratio (%) 83.0 86.6 82.0 83.2 84.4 Equity/Assets (%) 9.8 9.4 9.2 9.5 8.7 Equity/Advances (%) 15.2 13.9 13.9 14.1 12.7 CASA (%) 23.4 23.4 24.3 23.9 24.1 Capital Adequacy Ratio (CAR, %) 15.0 14.1 13.8 14.2 13.1 W/w Tier I CAR (%) 14.2 12.8 11.9 12.6 11.8

FY15 FY16 FY17E FY18E FY19E ASSET QUALITY

Gross NPLs (Rs mn) 1,861 1,974 2,542 3,272 3,805 Net NPLs (Rs mn) 1,057 975 1,244 1,397 1,318 Gross NPLs (%) 1.69 1.51 1.59 1.62 1.53 Net NPLs (%) 0.91 0.75 0.79 0.70 0.54 Coverage Ratio (%) 43.2 50.6 51.1 57.3 65.4 Provision/Avg. Loans (%) 0.45 0.54 0.55 0.54 0.53 ROAA TREE

Net Interest Income 3.50% 3.51% 3.69% 3.69% 3.72% Non-interest Income 1.14% 1.25% 1.16% 1.13% 1.16% Treasury Income 0.19% 0.24% 0.21% 0.20% 0.23% Operating Cost 2.73% 2.79% 2.91% 2.87% 2.79% Provisions 0.48% 0.50% 0.52% 0.55% 0.56% Provisions For NPAs 0.29% 0.36% 0.37% 0.36% 0.36% Tax 0.12% 0.38% 0.50% 0.48% 0.52% ROAA 1.32% 1.10% 0.93% 0.92% 1.01% Leverage (x) 10.8 10.8 11.7 10.6 11.5 ROAE 14.24% 11.88% 10.83% 9.75% 11.54% Source: Bank, HDFC sec Inst Research

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RECOMMENDATION HISTORY

Rating Definitions BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

Date CMP Reco Target 19-Apr-16 88 BUY 107 8-Jul-16 103 BUY 115

15-Jul-16 100 BUY 115 7-Oct-16 125 BUY 136

15-Oct-16 122 BUY 138 17-Jan-17 121 BUY 143 18-Apr-17 173 BUY 197

6080

100120140160180200220

Apr

-16

May

-16

Jun-

16

Jul-1

6

Aug

-16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17

Mar

-17

Apr

-17

DCB Bank TP

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Disclosure: We, Darpin Shah, MBA and Pranav Gupta, ACA, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. The Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also, the Research Analyst or his relative or HDFC Securities Ltd. or its associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further the Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest. 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