Corporate Presentation

November 2010

Copyright IBM Corporation 2008

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

Copyright IBM Corporation 2008 2

Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

Copyright IBM Corporation 2008 3

DCB Overview
DCB at a glance
Development Credit Bank Ltd (DCB) http://www.dcbl.com is a modern emerging new generation private sector bank. Present since 1930s, DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995 Distribution network of 80 branches across 28 cities and 113 ATMs (as on September 30, 2010)

Comprehensive product range & scalable infrastructure

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

Traditional loyal customer base

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

Continued focus on building low cost franchise

Continued focus on building a low cost deposit franchise with strong capital position CASA of 34.6% and CRAR of 13.6% under Basel II (as on September 30, 2010)

Steady improvement in credit ratings

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

Robust Promoter background

DCBs promoter, Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed is present in 16 countries employing over 30,000 people Promoter group holds 23.09% stake in DCB ( as on September 30, 2010)

Pedigreed board and experienced Management team

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

Copyright IBM Corporation 2008 4

Key Milestones
In Existence Since 1930s

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

1984 Multi-State Cooperative Bank

1988 Acquired Scheduled status from Reserve Bank of India

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

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

2006 IPO

Tier I Capital Raising

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

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

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

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

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

Copyright IBM Corporation 2008 5

Robust Promoter Background and Strong Investor Profile

Shareholding Pattern (September 30, 2010)

Key institutional shareholders Al Bateen Investment Co LLC: 3.69%

Promoter and Promoter Group 23.09% Institutions 9.84% Others (NonInstitutions)* 1 3.65% Bodies Corporate 1 6.95%

Tata Capital Ltd: 3.29% DCB Investments Ltd. (SVG Capital): 2.65% HDFC Ltd: 2.02% Sundaram BNP Paribas Mutual Fund: 1.70% Birla Sunlife Life Insurance Co Ltd: 1.65%

Shareholding Pattern

Individuals 36.47%

Khattar Holdings Pvt. Ltd: 1.50% ICICI Prudential Life Insurance Co Ltd: 1.42% Edelweiss Securities Ltd: 1.03%

*Includes Clearing Members (4.47%), Foreign Nationals, Non Resident Indians (1.32%), Foreign corporate bodies (7.84%), Directors their relatives and friends

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

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

Principal Promoter

Note: Numbers are rounded off upto two decimal places

Copyright IBM Corporation 2008 6

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

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

Board of Directors

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

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

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

Rajab Momin Bachelor of Commerce and Fellow of Institute of Chartered Accountants of India. Experience in the field of accounting and audit. On the board of number of companies
* Worked in India & Abroad

Nasim Devji Fellow of the Institute of Chartered Accountants of England & Wales (FCA). Currently working as Managing Director of Diamond Trust Bank Kenya & Group CEO of Diamond Trust Banks in East Africa
Copyright IBM Corporation 2008 7

Strong Management Team

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

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

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

Rajesh Verma Head - Treasury

State Bank of India *31 yrs exp.

Management

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

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

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

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

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

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

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

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

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

* Worked in India & Abroad

Copyright IBM Corporation 2008 8

80 Branches, Strong Presence in the Western Region

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

Branches DCB ATMs **Network

80 113 35,000 +

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

July-10:DCB received permission from RBI to open 2 new Rural/Semi-Urban branches at Netrang (Bharuch Distt.) & Mandvi (Surat Distt.) in Gujarat
Copyright IBM Corporation 2008 9

Products & Services

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

SME, Corporate Banking, NBFCs, Co-operative Banks

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

Cash Management** RTGS /NEFT Internet Banking

Treasury, NBFCs, Co-operative Banks

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

DCB offers a comprehensive range of products and services

*Offered to existing customers only ** DCB has tie up with HDFC Bank and Axis Bank to provide customers with cash management facilities at over 500 locations across india Copyright IBM Corporation 2008 10 *** Launched on trial basis

Contents

Development Credit Bank - Overview

Recent Events

Business Strategy & Financials

Annexure

Copyright IBM Corporation 2008 11

Recent Events
Key challenges since mid 2008 Increase in NPAs and provisions mainly on account of unsecured personal loans, commercial vehicle, construction equipment and a few corporate loans Decrease in size of balance sheet negatively impacting core income Cost structure created to support accelerated retail loans growth Rating downgrades impacting borrowing Top heavy organization Dependence on bulk deposits Strategic initiatives / Actions Substantial reduction in unsecured personal loans, CV and CE portfolio Stabilization of NPAs through intensive collections and recovery efforts. Coverage ratio of 79.64% as on September 30, 2010 Reduction in cost base Implementation of new business strategy resulting in steady balance sheet growth Launch of new deposit products Increase in CASA and retail term deposits to lower cost of funds and improve NIMs Rating upgrades Strengthening of Credit, Operations and Internal Audit Leaner organization structure, improvement in staff morale and retention Raising of Tier I (INR 810 mn) and Tier II (INR 650 mn) capital in FY10 to support growth in advances

Copyright IBM Corporation 2008 12

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

Copyright IBM Corporation 2008 13

Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

Copyright IBM Corporation 2008 14

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

Stringent mechanism for managing Credit and Operational risks

Continuously improve people quality and delivery

Copyright IBM Corporation 2008 15

Target

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

Approach

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

Increase balance sheet size

Goal

Improve cost / Income ratio Improve ROA and ROE

Copyright IBM Corporation 2008 16

Calibrated Growth in Balance Sheet

Total Assets
INR mn

75,775

59,430

57,991

55,907

57,021

61 ,367

63,733

69,376

Mar 31 2008 ,

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009

Dec 31 2009 ,

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

Net Advances*

INR mn

40,688

32,740

31 ,048

29,631

31 ,392

34,597

34,786

38,398

Mar 31 2008 ,

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009

Dec 31 2009 ,

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

Note: Financial numbers are rounded off to nearest whole number * Net Advances Gross advances less (net of) provisions

Copyright IBM Corporation 2008 17

Building Stable Low Cost Funding Base

Deposits
INR mn INR mn

60,749 4,271 47,873 46,469 3,957 45,71 4 2,422 45,025 2,093 44,824 1 ,047 1 ,590 51 52 ,1 1 0 ,51 54,951 1 ,652

41 ,735

28,1 01

27,980

26,365

26,680

29,356

31 ,220

34,301

1 4,743

1 4,41 1

1 5,31 2

1 6,567

1 7,097

1 6,927

1 8,422

1 8,998

Mar 31 2008 ,

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009 CASA Term Deposits

Dec 31 2009 , Other Deposits

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

INR mn Mar 31, 2010 Jun 30, 2010 Sep 30, 2010

Mar 31, 2008 Retail Deposit/ Total Deposits

Mar 31, 2009

Jun 30, 2009

Sep 30, 2009

Dec 31, 2009

51.95%

67.53%

78.75%

82.56%

83.87%

81.54%

79.77%

78.65%

CASA Ratio

24.27%

31.01%

33.49%

36.80%

38.14%

35.36%

36.02%

34.57%

Access to low cost stable funding source to support advance growth without undue reliance on volatile wholesale funding
Note: Financial numbers are rounded off to nearest whole number Copyright IBM Corporation 2008 18

Thrust on Low Cost Deposits through Branch Network

Retail CASA & Retail Term Deposits
INR mn

35,999 31 ,557 31 ,380

37,1 75

37,592

39,034

40,802

43,21 9

1 7,673

1 32 8,1

21 ,653

21 ,737

21 ,594

23,056

23,830

25,694

1 3,884

1 3,248

1 4,346

1 5,438

1 5,998

1 5,978

1 6,972

1 7,525

Mar 31 2008 ,

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009 Retail CASA

Dec 31 2009 , Retail Term Deposits

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

Retail Deposits / Branch

INR mn

450 395 393

465

470

488

51 0

540

221

227

271

272

270

288

298

321

1 74

1 66

1 79

1 93

200

200

21 2

21 9

Mar 31 2008 ,

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009

Dec 31 2009 ,

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

Retail CASA / Branch

Retail Term Deposits / Branch

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 19

Increased Provisions with Adequate Coverage

Key Ratios
1 0.86% 76.66% 66.20% 53.34% 8.78% 68.93% 64.37% 52.81 % 61 .28% 1 .24% 1 1 .05% 1 82.50% 70.04% 8.69% 93.99% 79.64%

89.88% 75.1 9%

73.25% 63.42%

8.47% 7.61 %

48.40%

4.96% 3.88% 1 .49%

4.67%

4.35% 3.1 % 1 2.53% 1 .86%

0.66% Mar 31 2008 , Mar 31 2009 , Jun 30, 2009 Coverage Ratio - Bank Sep 30, 2009 Dec 31 2009 , Mar 31 201 , 0 Jun 30, 201 0 Sep 30, 201 0

Coverage Ratio - PL

Gross NPA%

Net NPA%

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

Mar 31, 2008 338 71 162 63 634 270

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

Jun 30, 2009 1,641 592 1,150 257 3,640 1,540

Sep 30, 2009 1,665 620 1,065 226 3,576 1,385

Dec 31, 2009 1,715 640 1,064 311 3,730 1,364

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

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

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

Note: Financial numbers are rounded off to nearest whole number / Net NPAs are net of provisions * CV / CE / STVL represents Commercial Vehicle, Construction Equipment and Small Ticket Vehicle Loan ** Net NPA = Gross NPA (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense Copyright IBM Corporation 2008 20 account + total provisions held)

Calibrated Growth with Focus on Select Areas

INR mn CASA Retail Term Deposits Mortgages - sourced by DCB Mortgages - acquired SME + Micro SME Agri / Microfinance & Rural Banking Corporate Banking Mar 31, 2009 14,411 18,132 2,120 506 4,483 5,710 9,327 Mar 31, 2010 16,927 23,056 2,939 1,179 6,004 8,583 11,095 Sep 30, 2010 18,998 25,694 4,622 4,562 7,362 5,588 12,866 Variance H2 vs. H1 2,070 2,638 1,683 3,383 1,358 (2,995) 1,771

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 21

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

Portfolio* as on Mar 31, 2010

Retail Banking - 26%

Others 5% SME+ MSME 1 4%

Mortgages 8%

CV/CE/STVL 1 7% Personal Loans 1 0%

Mortgages 1 2% Others 3% SME+ MSME 1 7%

CV/CE/STVL Personal Loans 3% 8% AMRB 25%

Corporate Banking 29%

AMRB 1 7%

Corporate Banking 32%

Portfolio Mix as on Sep 30, 2010 30, 2010 Portfolio* as on September

Retail Banking - 33%

Mortgages 24%

CV/CE/STVL 5%

Personal Loans 1 % AMRB 1 4%

Others 3% SME+ MSME 1 9% Corporate Banking 34%

Note: Financial numbers are rounded off to nearest whole number * AMRB Agri / Microfinance / Rural, MSME Micro SME, CV / CE / STVL Commercial Vehicle, Corporate Equipment and Small Ticket Vehicle Loan

Copyright IBM Corporation 2008 22

Focus on Cost Management

Operating Income
INR mn

3,487 3,1 73

2,491 1 ,861 1 ,972 1 ,420 732 433 299 Q1FY1 1 733 464 269 Q2 FY1 1

1 ,626 1 ,201 1 ,071

581 354 227 Q1 FY1 0

656 31 4 342 Q2 FY1 0

583 326 257 Q3 FY1 0

672 426 246 Q4 FY1 0

FY08

FY09

FY1 0

Other Income

Net Interest Income

Operating Cost
90.1 8% 2,391 2,420 80.62% 76.20% 76.27% 971 68.56% 1 ,044 881 2,008 71 .46% 69.1 3% 86.63%

INR mn

71 .59%

1 ,420

1 ,376

1 27 ,1

523 239 284

500 229 271 Q2 FY1 0 Staff Cost

505 221 284 Q3 FY1 0 Cost Income Ratio

480 1 92 288 Q4 FY1 0

506 248 258 Q1FY1 1

525 250 275 Q2 FY1 1

FY08

FY09

FY1 0

Q1 FY1 0 Operating Cost

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 23

Improvement in Operating Performance

Operating Profit
INR mn

1 ,096 753 483 1 56 57 FY08 FY09 FY1 0 Q1 FY1 0 Q2 FY1 0 1 92 78 Q3 FY1 0 Q4 FY1 0 Q1 FY1 1 Q2 FY1 1 226 208

Provisions

INR mn

1 ,634 1 ,268 71 3 41 0 325 259 Q3 FY1 0 274 Q4 FY1 0 255 Q1 FY1 1

1 60 Q2 FY1 1

FY08

FY09

FY1 0

Q1 FY1 0

Q2 FY1 0

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

Copyright IBM Corporation 2008 24

Bottom Line Improvement

Net Profit / Loss *
INR mn

19

383

48

(82) (1 69) (353) (1 ) 81

(29)

(785) (881 ) FY08 FY09 FY1 0 Q1 FY1 0 Q2 FY1 0 Q3 FY1 0 Q4 FY1 0 Q1FY1 1 Q2 FY1 1

Note: Financial numbers are rounded off to nearest whole number * Net Profit / (loss) represents post tax numbers

Copyright IBM Corporation 2008 25

NIM, Yield on Advances and Cost of Funds

Net Interest Margin
3.27% 3.03% 2.86% 2.78% 2.50% 2.79% 2.61 % 3.1 2%

INR mn

3.1 4%

FY08

FY09

Q1 FY1 0

Q2 FY1 0

Q3 FY1 0

Q4 FY1 0

FY1 0

Q1 FY1 1

Q2 FY1 1

Yield on Advances & Cost of Funds

1 3.58%

1 3.32%

1 3.05% 1 2.50% 1 2.04% 1 .70% 1

1 2.33% 1 .21 1 % 1 0.95%

7.27%

7.51 %

7.1 8%

6.58%

6.35%

5.65%

6.44%

5.63%

5.58%

FY08

FY09

Q1 FY1 0

Q2 FY1 0

Q3 FY1 0

Q4 FY1 0

FY1 0

Q1 FY1 1

Q2 FY1 1

Yield on Advances

Cost of Funds

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 26

Other Income
INR mn Commission, exchange and brokerage Sale of investments Sale of land, buildings and other assets Exchange transactions Lease income Miscellaneous income Total FY08 845 15 102 229 7 428 1,626 FY09 768 20 47 224 142` 1,201 FY10 664 178 (3) 64 9 159 1,071 Q1FY11 156 86 (2) 19 40 299 Q2FY11 175 36 (2) 29 31 269

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 27

Treasury
INR mn SLR Non-SLR Total Investments * HTM AFS HFT Total Investments * Mar 31, 2009 12,675 3,542 16,217 10,808 4,630 779 16,217 Mar 31, 2010 15,789 4,390 20,179 16,890 3,263 26 20,179 Sep 30, 2010 16,639 4,336 20,975 18,542 2,178 255 20,975

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

Copyright IBM Corporation 2008 28

Capital Adequacy Ratios

Capital Adequacy Ratios
Basel II

1 4.85% 1 3.30% 1 .80% 1 3.22% 3.20% 1 .79%

1 4.85% 2.89%

1 4.85% 2.92%

1 3.80% 2.40%

1 3.57% 2.31 %

1 .50% 1

1 .43% 1

1 .65% 1

1 .96% 1

1 .93% 1

1 .40% 1 1 .26% 1

Mar 31 2009 ,

Jun 30, 2009

Sep 30, 2009

Dec 31 2009 , Tier I Tier II

Mar 31 201 , 0

Jun 30, 201 0

Sep 30, 201 0

Mar 31, 2009 Basel II 13.30%

Jun 30, 2009 13.22%

Sep 30, 2009 14.85%

Dec 31, 2009 14.85%

Mar 31, 2010 14.85%

Jun 30, 2010 13.80%

Sep 30, 2010 13.57%

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

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 29

Contents

Development Credit Bank Overview

Recent Events

Business Strategy & Financials

Annexure

Copyright IBM Corporation 2008 30

Balance Sheet
Mar 31, 2009
5,957 46,469 3,455 3,523

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

Jun 30, 2009

5,633 45,714 3,264 3,352

Sep 30, 2009

5,469 45,025 1,488 3,898

Dec 31, 2009

6,073 44,824 2,108 3,997

Mar 31, 2010

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

Jun 30, 2010

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

Sep 30, 2010

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

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

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

3,939 19,287 31,048 1,457 2,260 67.92%

3,703 19,087 29,631 1,418 2,068 65.81%

5,113 17,011 31,392 1,378 2,127 70.03%

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

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

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

INR mn CASA Other Deposits Total Deposits CASA Ratio

Mar 31, 2009

14,411 32,058 46,469 31.01%

Jun 30, 2009

15,312 30,402 45,714 33.49%

Sep 30, 2009

16,567 28,458 45,025 36.80%

Dec 31, 2009

17,097 27,727 44,824 38.14%

Mar 31, 2010

16,927 30,946 47,873 35.36%

Jun 30, 2010

18,422 32,730 51,152 36.02%

Sep 30, 2010

18,998 35,953 54,951 34.57%

Note: Financial numbers are rounded off to nearest whole number 1 : Subordinated debt included in borrowings since March 31, 2010 as per RBI guidelines, same included in other liabilities and provisions in earlier periodsCopyright IBM Corporation 2008 31

Profit & Loss

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

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

Q1FY10
354 227 581 (523) 57 (410) (353) 90.18%

Q2FY10
314 342 656 (500) 156 (325) (169) 76.20%

Q3FY10
326 257 583 (505) 78 (259) (181) 86.63%

Q4FY10
426 246 672 (480) 192 (274) (82) 71.46%

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

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

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

Note: Financial numbers are rounded off to nearest whole number

Copyright IBM Corporation 2008 32

Thank you

Copyright IBM Corporation 2008 33