Dear Shareholder''s
 
 A Satisfying Year
 
 The Indian Economy: last year was characterized by a tightening of
 monetary policy to combat inflation. The liquidity conditions also
 remained difficult throughout the year. Due to domestic and
 international challenges, economic activity and growth got impacted.
 It appears that bold government policy initiatives may be required as
 soon as possible to encourage investment and regain growth trajectory.
 
 In an adverse economic environment, DCB continued to perform well and
 delivered a strong growth in Balance Sheet and profitability.  We
 continued to pursue retail deposits and secured lending. Prudent
 lending and timely portfolio actions helped to contain NPAs in a
 difficult year. The Bank''s net NPA was below one percent and
 provision coverage ratio was 85.7%.
 
 This year, the Bank crossed three major benchmarks. The Balance Sheet
 size crossed the Rs. 10,000 crore mark to close at Rs. 11,279 crore;
 Net worth crossed the important Rs. 1000 crore mark to close at Rs.
 1,003 crore and our Profit After Tax crossed the Rs. 100 crore mark to
 close at Rs. 102 crore. DCB has delivered three years of continuous
 profitability and we hope to build on this momentum even further in the
 coming years.
 
 In a year when capital raising was not easy, DCB raised Tier I capital
 of Rs. 40.62 crore through Preferential Allotment. The Bank''s Capital
 Risk Adequacy Ratio (CRAR) stood at 13.61. CRISIL has upgraded the
 Bank''s Long Term rating to A-/Stable and Short Term rating to A1 .
 The rating upgrade is a result of consistent delivery and step- by-step
 improvement over the past many quarters by the Bank. Both these events
 reflect the comfort external investors as well as rating agencies have
 placed on DCB''s performance. Twenty nine investment analysts are now
 tracking DCB and most of them have made positive observations.
 
 Institutional Development
 
 Performance is a function of the culture and passion of an institution.
 The results we see today is an outcome of the enormous efforts that
 have been placed on developing a distinctive DCBian culture. The
 selection of personnel, their induction, training, value systems are
 all part of a carefully planned process that is currently being evolved
 in the Bank. The Human Resource (HR) development initiatives undertaken
 at DCB are second to none. They involve all aspects of human
 development and this effort is now laying the foundations for a very
 unique institution for the future. DCB was awarded as Great Place to
 Work in the study conducted by Great Place to Work Institute.
 
 During the year, DCB relocated to its new owned Corporate Office
 premises at Peninsula Business Park in Lower Parel. To mark this
 historic occasion, we invited Prince Rahim Aga Khan to India to be
 present during the inauguration. We are very grateful to Prince Rahim
 having readily agreed to be in India with us for this purpose.
 Subsequently, our back office operations and technology office which
 was located in Vikhroli was also co-located to Peninsula Business Park.
 The close proximity of operations and Corporate Office is likely to
 help speed up internal decision making and improve customer service
 substantially. Our new owned premises is the physical embodiment of a
 new institutionalization that is currently taking place at DCB.
 
 Creating a great place to work and a conducive physical office space
 are designed for a single purpose: our customer. The entire focus of
 attention of the organization is to strive to give DCB''s customers
 the best personalized banking service possible. In order to achieve
 this goal, we need highly trained and sensitive frontline staff armed
 with a back office that can deliver in the most efficient manner
 possible. We have been working very hard on this and we hope this year
 to ensure we meet our own rigorously set service standards. As
 Chairman, I have taken it upon myself to meet our customers both in
 organized meetings as well as at branches in order to assess for myself
 our progress in meeting the goals we ourselves have established. One
 thing we will always strive for: fixing problems as they arise and
 listening to our customers for a better and more personalized delivery
 of banking services using the best technology at our disposal.
 
 Momentum
 
 The theme of this year''s annual report is momentum. We feel we
 have built momentum to break out of a cycle we found ourselves in some
 years ago. I firmly believe we are now in a much better position which
 can only strengthen as we continue to execute our plans with discipline
 and care. Linear momentum possesses both direction as well as
 magnitude. DCB has reinvented itself over the past few years and has
 succeeded in gaining momentum in a predetermined direction. As we
 continue to increase this momentum we are confident of taking on
 greater challenges as we look into the future.
 
 Nasser Munjee
 
 Chairman April 12, 2013