Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY24 Earnings Presentation
54 slides from Rbl Bank's earnings presentation, Jan 19, 2024
Slide 1: Investor Presentation Q3 FY24
Investor Presentation Q3 FY 24 January 19, 2024 1
Slide 2: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by RBL Bank Limited (the “Company”) for use in presentations by
Slide 3: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System INR Indian Rupee Agri Agribusiness Banking IPO Initial Public Offering API Application Programming Interface MF Mutual Funds ATM Automated Teller Machine Mn Million BC Business Correspondent NFB Non Fund Based Bps Basis Points NIM Net Intere
Slide 4: Executive Summary
Executive Summary
Slide 5: Major Highlights for the Q3 FY24
Major Highlights for the Q3 FY24 Improving operating • Operating Profit grew 35% YoY to Rs. 765 crore performance.. • Bank has provided Rs. 115 crore towards contingent provision on AIF investments • Excluding this provision, Net Profits grew 53% YoY & 9% QoQ to Rs. 319 crore; RoA at 1.03% and RoE a
Slide 6: Key Parameters
Key Parameters Deposits up 13% YoY to Advances up 20% YoY to 14mn+ customers across Scale Rs. 92,746 crore Rs. 79,949 crore segments Retail Assets up 33% YoY; ~6+ lakh customers added Growth Drivers <2cr Deposits up 23% YoY Comm. Banking up 19% YoY in the quarter 16.4% CRAR Avg. LCR for Q3 FY24 at B
Slide 7: Consistently delivering robust growth and sustained profitability
Consistently delivering robust growth and sustained profitability… Advances Deposits Profitability 66,684 70,209 73,087 76,324 79,949 81,746 84,887 85,636 89,780 92,746 * 1.00% 1.01% 1.00% 1.03% 0.78% 34,977 37,778 40,866 51,798 53,170 53,710 57,692 44,092 46,371 61,407 17,087 16,922 16,795 17,258 1
Slide 8: Key Ratios
Key Ratios Parameter Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Yield on Advances 12.35% 12.21% 12.78% 13.54% 13.87% 14.03% 14.00% Cost of Deposits 4.84% 5.14% 5.47% 5.73% 6.07% 6.21% 6.31% Cost of Funds 4.87% 5.19% 5.55% 5.85% 6.15% 6.33% 6.45% Net Interest Margin 5.04% 5.02% 5.27% 5.62% 5.53% 5.54%
Slide 9: Advances and Deposits
Advances and Deposits
Slide 10: Well Diversified Advances; Growth led by Retail & Commercial Banking
Well Diversified Advances; Growth led by Retail & Commercial Banking Strong growth in Retail Advances; With focus on growing secured retail assets and commercial banking Retail : Wholesale mix of 58:42 Dec 2023 Dec 2022 YoY Sep 2023 QoQ Corporate Net Funded Advances Banking 24,666 24,214 2% 23,888 3
Slide 11: Wholesale Advances; growth led by Commercial Banking
Wholesale Advances; growth led by Commercial Banking Wholesale Advances Wholesale Exposure - Rating Breakup (%) 84.7% 64,235 31,707 32,431 32,221 32,233 33,577 A - or Better BBB BB & Below 8,912 12.8% 7,493 7,788 7,502 8,345 19% YoY 2.5% FB+NFB Top 10 Industries FB-NFB Split % of Outstanding Outstan
Slide 12: Retail Advances
Retail Advances 34,977 37,778 40,866 44,092 46,371 2,826 6% 2,581 1,997 1,442 4% 1,631 1,377 1,360 4% 1,242 864 1,351 1,029 4,941 6,146 1,357 13% 803 2% 4,541 777 2% 1,260 4,583 4% 4,142 8,315 7,433 12% 16% 8,058 7,252 7,342 21% 6,827 6,785 15% 6,517 5,963 5,021 14% 3,547 3,699 8% 3,571 3,419 3,225
Slide 13: Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets
Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets 3,422 5,358 4,786 5,002 5,958 829 14% 512 429 765 13% 670 361 714 412 296 693 7% 269 315 927 291 9% 1,392 814 23% 698 612 18% 479 292 9% 567 791 571 10% 454 13% 322 9% 2,474 2,152 1,985 1,989 33% 1,451 42% Q3 FY23 Q4 FY
Slide 14: Deposits Breakup, growth led by granular deposits
Deposits Breakup, growth led by granular deposits Total deposits grew by 13% YoY; CASA Ratio at 33.8% Dec 22 Sep 23 Dec 23 81,746 89,780 92,746 63.4% 64.3% 66.2% 20.9% 19.2% 18.8% 15.7% 16.5% 15.0% TD SA CA TD SA CA TD SA CA Share of Retail LCR Deposits & CASA Ratios Deposits < Rs. 2 crore LCR Posit
Slide 15: Improving Financial Metrics
Improving Financial Metrics
Slide 16: Strong Core Fee Income Growth
Strong Core Fee Income Growth Other Income Core Fee Income Breakup 618 704 778 1,815 2,167 590 678 729 1,665 2,047 3% 4% 23% 4% 4% 22% 22% 22% 7% 4% 6% 22% 6% 95% 96% 94% 3% 27% 24% 3% 92% 94% 27% 27% 31% 31% 34% 32% 29% 32% 5% 4% 6% 8% 6% 12% 10% 9% 11% 10% Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q
Slide 17: Operating Costs growth led by business acquisition cost
Operating Costs growth led by business acquisition cost 1,329 1,448 1,558 3,848 4,467 10% 11% 14% 14% 8% 10% 8% 13% 10% 11% 15% 8% 13% 8% 34% 11% 30% 36% 34% 30% 4% 4% 5% 3% 3% 6% 4% 6% 5% 6% 26% 25% 25% 26% 26% Q3 FY23 Q2 FY24 Q3 FY24 9M FY 23 9M FY 24 Employee Premises Depreciation Business Acquis
Slide 18: Asset Quality
Asset Quality
Slide 19: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Movement of Gross NPAs Opening Balance 2,457 2,469 2,420 2,404 2,441 (+) Additions during the period 608 681 555 541 666 (-) Upgrade 99 138 97 53 100 (-) Recoveries 126 248 169 113 100 (-) Write Offs 371 344 304 339 35
Slide 20: Loan Provisions Breakup
Loan Provisions Breakup Particulars As of 31st Dec For Q3 FY24 2023 NPA Specific Provision (towards 1,915 427 PCR) Contingency Buffer on Credit Cards, Personal Loans and 262 10 Microfinance Advances (outside PCR) Restructured Provision (outside 81 (24) PCR) Standard Provisions on AIF 115 115 Investm
Slide 21: Stable Asset Quality
Stable Asset Quality NPA Position PCR 3.61% 84.7% 85.0% 85.9% 88.4% 89.3% 3.37% 3.22% 3.12% 3.12% 75.6% 75.1% 68.0% 68.1% 69.6% 1.44% 1.21% 1.05% 0.89% 0.80% 1.18% 1.10% 1.00% 0.78% 0.63% Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 PCR PCR incl. Twoff GN
Slide 22: Credit Costs Trend Stable and Within Guidance
Credit Costs Trend Stable and Within Guidance Net Credit Cost by Business (bps) 39* 90* 48* 121* 178* 133 118 50 42 37 35 38 4 4 5 7 1 3 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 • Not Annualized for the bank or at individual segment level for the quarter and half year Bank changed its provisioning po
Slide 23: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 24: Adequately Capitalised for Growth
Adequately Capitalised for Growth Total RWA 75,909 78,222 80,187 83,353 85,138 88,048 89,482 94,640 17.51% 17.37% 16.99% 16.92% 17.07% 16.82% 16.68% 16.42% Q3FY24 saw the impact of the 16.21% regulatory direction 16.00% 15.85% of the RBI in 15.49% 15.25% 15.15% November 2023 15.05% 14.58% 15,541 15,
Slide 25: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings 1.6 Instrument Rating ICRA AA- (Stable) 12.6 (Re-affirmed dated Aug 11, 2023) 29.2 Basel III compliant Tier II bonds CARE AA- (Stable) (Re-affirmed dated Sep 27, 2023) 28.3 ICRA A1+ 8.6 Certificate of Deposits (Re-
Slide 26: Growing Distribution Network
Growing Distribution Network
Slide 27: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network 0.66 Locations Customers (Mn.) Chandigarh 0.24 4 14.31 14.97 12.91 13.65 GIFT 58 11.77 12.00 2 city 14 New Delhi branch 1 18 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 24 Channel Breakup 15 1 6 Channels Number of transaction points 29 17 Dec
Slide 28: Our Aspirations For FY26
Our Aspirations For FY26
Slide 29: Our Progress towards Aspirations For FY26
Our Progress towards Aspirations For FY 26 Key Financial Targets (FY 24 – FY 26) Actuals (Q3 FY 24) Advances Deposits Advances Deposits 20%+ CAGR 20%+ CAGR 20% YoY 13% YoY Average CASA Average CASA Granular Deposits Granular Deposits Growth Growth 50%+ 1-2% 1-2% p.a. p.a. 44.5% (2%) YoY Share of New
Slide 30: Credit Card Update
Credit Card Update
Slide 31: Business Volumes: Growth & Market Share
Growth & Market Share Source RBI Data Nov’22 Nov’23 RBL Industry RBL Industry 4.94 M 96.00 M CIF 4.23 M 80.66 M 17% 19% 6,803 Cr 1,61,035 Cr Spends* 5,008 Cr 1,15,161 Cr 36% 40% 20,153Cr 2,44,689 Cr Advances 15,727Cr 1,82,320 Cr 28% 34% Business Volumes 5.74 lacs 50.37 lacs ₹ 21,160 Cr ₹ 20,137 Cr N
Slide 32: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.63 5.04 0.59 0.59 0.57 4.88 4.94 0.55 4.81 4.61 4.41 4.24 0.19 0.18 0.20 Dec Mar Jun Sep Oct Nov Dec Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Oct'23 Nov'23 Dec'23 2022 2023 2023 2023 2023 2023 2023 Gross Advances Breakup (Cr.) Tot
Slide 33: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend # Consumer Loans (‘000) 30,236 29,542 30,964 47 28,944 27,690 28,043 46 27,207 42 48 49 13,618 14,349 13,611 14,419 12,656 12,575 12,754 1058 886 892 906 983 16 14 18 371 342 345 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Oct'23 Nov'23 Dec'23 Q3'23 Q4'23 Q1'24 Q2'24 O
Slide 34: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 1.33 1.65 0.77 1.30 0.97 0.93 3% Cards-in- Force 15% 20% 19% As on 31st Dec 34% 39% 66% 52% 82% 2023 0.80 10% 1.07 61% 1.01 1.01 0.93 Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded B
Slide 35: Credit Cards – tighter control on new bookings, delinquencies in line with industry
Credit Cards – tighter control on new bookings resulting in delinquencies in line with industry. 18.0% 16.0% 6MOB$30+ Comparison with Industry 12.0% $30+ Comparison with Industry 14.0% 10.0% 12.0% INDUSTRY INDUSTRY 10.0% 8.0% 8.0% RBL RBL 6.0% 6.0% 4.0% 2.0% 4.0% 0.0% 2.0% Refer note below 0.0% 10.0
Slide 36: Microfinance Update
Microfinance Update
Slide 37: Microfinance Distribution Network
Microfinance Distribution Network Jammu & Kashmir (1) Himachal Pradesh (2) Punjab (37) 21 Uttarakha 406 11,000 + Haryana nd States and 2 (43) (6) UTs Districts Villages Uttar Pradesh Assam Rajasthan (121) Bihar (22) (94) (139) Meghalaya (2) Jharkh West Gujarat (22) and Madhya Benga Tripura Pradesh (
Slide 38: Portfolio Update
Portfolio Update Net Advances In Cr Disbursements In Cr 4852 5021 5963 6517 6785 6827 1865 1451 2474 2162 1996 2002 13% 12% 12% 12% 12% 9% 10% 11% 12% 14% 13% 31% 87% 88% 88% 88% 88% 91% 90% 89% 88% 86% 87% 69% Q2_FY23 Q3_FY23 Q4_FY23 Q1_FY24 Q2_FY24 Q3_FY24 Q2_FY23 Q3_FY23 Q4_FY23 Q1_FY24 Q2_FY24 Q
Slide 39: Portfolio Concentration and Delinquency Trend
Portfolio Concentration and Delinquency Trend Portfolio Concentration Delinquency 67% 2.24% 61% 1.93% 53% 57% 1.79% 1.68% 40% 1.41% 39% 1.16% 0.98% 0.80% 0.86% RBL PEER 1 INDUSTRY 30-180 60-180 90-180 TOP 3 State TOP 5 State RBL PEER 1 INDUSTRY Source : Equifax Data as of Sept’23 39
Slide 40: Digital Banking Update
Digital Banking Update
Slide 41: Digital Portfolio
Digital Portfolio IMPS UPI RTGS 4.3 6.6% 83.4% 7.9% 50+ 9 7 Cr Monthly Transaction Services on Channels Mobile app Ratings Digital Channels D2C Volume In Crs 77% 6L ~21K 50% 62+ Channel Penetration Monthly VKYC ~17 k digital full Usable No of Daily average Transformation (on TA) KYC Savings API API
Slide 42: Leveraging Channels for Customer Servicing
Leveraging Channels for Customer Servicing Mobile Banking MyCard Net Banking (4.3) Users Active Users Users 92% Android users 11.01L 50.72 L 67% 4.48L 61% (4) 24% 15% • Converting credit card transactions into EMIs • Segmented approach • Collaboration with multiple vendors • Behaviour based Risk man
Slide 43: ESG Update
ESG Update
Slide 44: ESG @ RBL - grow sustainably
ESG @ RBL - grow sustainably.. Sustainability continues to be at the core of what we do and make it an integral part of our business practices, including Risk Management practices.. Policy stipulation for managing E&S Financial literacy: footprint, E&S footprint and impact of • Bank runs flagship 'S
Slide 45: Annexures
Annexures
Slide 46: Experienced Board of Directors
Experienced Board of Directors Mr. R Subramaniakumar Mr. Prakash Chandra Managing Director and CEO Non – Executive Independent Director (Part Time Chairman) A veteran banker with 40 years of experience; Previously, Previously, Chairman of Central Board of Direct Taxes (CBDT) associated with PNB, Ind
Slide 47: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. R Subramaniakumar Mr. Rajeev Ahuja Managing Director and CEO Executive Director A veteran banker with 40 years of experience; Previously, Previously, associated with Citibank India, Bank of America, India associated with PNB, Indian Bank and Indian Ov
Slide 48: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. R. Rajagopalan Mr. Prakash Gupta Head – Internal Audit Chief Compliance Officer Previously, associated with HDFC Bank, Kotak Mahindra Bank Previously, associated with Barclays, Credit-Suisse and Rabobank (30) (26) Mr. N Hari Prakash Mr. Buvan
Slide 49: Balance Sheet
Balance Sheet Particulars Dec 2022 Sep 2023 Dec 2023 Liabilities Capital 600 601 603 Reserves and Surplus 12,695 13,520 13,789 Deposits 81,746 89,780 92,746 Borrowings 10,623 15,302 14,800 Other Liabilities 3,891 4,941 5,209 Total 1,09,555 1,24,144 1,27,146 Assets Cash & Balances with RBI 5,010 8,03
Slide 50: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY24 Q3 FY23 Q2 FY24 9M FY 24 9M FY 23 Income Interest Earned 3,191 2,498 3,008 9,055 7,034 Interest Expended 1,646 1,220 1,533 4,612 3,393 Net Interest Income 1,546 1,277 1,475 4,443 3,641 Other Income 778 618 704 2,167 1,815 Total Income 2,323 1,896 2,179 6,6
Slide 51: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Dec 2022 Sep 2023 Dec 2023 Liabilities Capital 600 601 603 Reserves and Surplus 12,617 13,538 13,818 Deposits 81,745 89,730 92,683 Borrowings 10,628 15,302 14,801 Other Liabilities 3,913 4,936 5,211 Total 109,502 1,24,108 1,27,116 Assets Goodwill on Consolidati
Slide 52: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3 FY24 Q3 FY23 Q2 FY24 9M FY 24 9M FY 23 Income Interest Earned 3,191 2,497 3,008 9,055 7,034 Interest Expended 1,645 1,221 1,533 4,611 3,394 Net Interest Income 1,547 1,276 1,475 4,444 3,640 Other Income 777 624 713 2,184 1,823 Total Income 2,324 1,
Slide 53: Historical Performance
Historical Performance 9M 9M Particulars FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 FY23 FY24 Net Worth 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 12,006 12,996 12,708 13,746 Deposits 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,00
Slide 54: Thank you
Thank you apno ka bank | RBL Bank 54