Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY21 Earnings Presentation
61 slides from Rbl Bank's earnings presentation, Jan 28, 2021
Slide 1: Investor Presentation Q3 FY21
Investor Presentation 3rd Quarter/ Q3 FY 21 January 28, 2021
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 LAP Loan Against Property ARC Asset Reconstruction Company MF Mutual Funds ATM Automated Teller Machine Mn Million BC Business Corre
Slide 4: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 Financial Performance 11 Distribution Network 29 Shareholding Pattern and Ratings 31 Micro-Banking Update 33 Credit Card Update 38 Digital Banking Update 45 Marketing & CSR Update 50 Annexures 52 4
Slide 5: Key Performance Highlights
Key Performance Highlights
Slide 6: Q3 FY21 Financial Highlights
Q3 FY21 Financial Highlights In a difficult year, YoY Total Revenue growth of 6% powered by Other Income growth of 19% PPOP growth of 12% YoY (12% growth sequentially) to Rs. 805 crore; Net Profit at Rs. 147 crore up 110% YoY NIM at 4.19% , subdued due to reversal of interest income on proforma slip
Slide 7: Q3 FY21 Highlights Contd....
Q3 FY21 Highlights Contd…. Strong Revenue and Operating Handsome Deposit Growth Healthy Capitalisation and Profit Growth Liquidity Levels and continued Total Deposits grew 7% YoY and Core Fee Income above pre- 4% QoQ CRAR at 17.9% and CET 1 to COVID levels, grew 37% QoQ CASA grew 24% YoY and
Slide 8: Q3 FY21 Highlights Contd....
Q3 FY21 Highlights Contd…. YoY Growth QoQ Growth Net interest Income Rs. 908cr (2%) (3%) Core Fee Income Rs. 497cr 5% 37% Net Total Income Rs. 1,488cr 6% 7% Operating Profit Rs. 805cr 12% 12% Net Profit Rs. 147cr 110% 2% 8
Slide 9: Q3 FY21 Highlights Contd....
Q3 FY21 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 56,444cr (5%) 1% Wholesale Rs. 23,506cr (25%) (2%) Advances Retail Rs. 32,938cr 16% 2% Advances Deposits Rs. 67,184cr 7% 4% CASA Rs. 20,867cr 24% 4% 9
Slide 10: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 12.9% 41.6% 58.4% 18.1% Wholesale Retail 68.9% Retail Advances Breakup (%) 6.3% 3.4% 32.9% 20.4% Term Deposits Saving Deposits Current Deposits 37.0% Business Loans Credit Cards Microbanking Agri Others 10
Slide 11: Financial Performance
Financial Performance
Slide 12: Strong PPOP Momentum Despite COVID Impact
Strong PPOP Momentum Despite COVID Impact Parameter Q3 FY21 Q2 FY21 QoQ Q3 FY20 YoY 9M FY21 9M FY20 Net Interest Income 908 932 (3%) 923 (2%) 2,882 2,609 Other Income 580 456 27% 487 19% 1,369 1,410 Net Total Income 1,488 1,388 7% 1,410 6% 4,251 4,018 Operating Profit 805 720 12% 717 12% 2,214 1,962
Slide 13: Balance Sheet Parameters
Balance Sheet Parameters Parameter Dec 31,2020 Dec 31,2019 YoY Advances 56,444 59,635 (5%) Deposits 67,184 62,907 7% Investments 24,939 19,100 31% Parameter Dec 31,2020 Sep 30,2020 Dec 31,2019 CASA 31.1% 31.1% 26.8% GNPA 1.84% 3.34% 3.33% NNPA 0.71% 1.38% 2.07% PCR (incl. Technical Write-offs) 86.4%
Slide 14: Other Income and Core Fee Income above Pre-COVID Levels
Other Income and Core Fee Income above Pre-COVID Levels Other Income Core Fee Income Breakup 1,273 1,410 1,369 9% 10% 1,097 20% 9% 580 497 487 474 54% 60% 456 14% 7% 9% 3% 362 80% 21% 90% 57% 10% 66% 3% 86% 56% 11% 97% 2% 79% 12% 3% 2% 2% 14% 12% 8% 13% 9% 11% 9% 8% 10% 10% 9% 10% 7% Q3 FY20 Q2 FY21
Slide 15: Operating Costs Lower; Driven by Lower Business Volumes and Cost Efficiency
Operating Costs Lower; Driven by Lower Business Volumes and Cost Efficiency Operating Expenses 2,056 2,037 693 669 683 60% 53% 61% 52% 55% 6% 6% 5% 6% 10% 5% 10% 9% 8% 7% 32% 31% 27% 31% 28% Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 15
Slide 16: Credit Costs including Provisioning on Proforma Slippages
Credit Costs including Provisioning on Proforma Slippages Net Credit Cost by Business (bps) 109* 94* 112* 239* 297* 79 173 160 62 60 124 52 79 32 30 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 * Not Annualized for the bank or at individual segment level for the quarter 16
Slide 17: Advances Mix and Growth Driven By Retail
Advances Mix and Growth Driven By Retail Yield Dec 31,2020 Dec 31,2019 YoY Proportion 9M FY 21 C&IB 17,812 23,327 (24%) of which IFI 1,026 1,734 (41%) 7.9% (9.0%) 42% CB 5,694 8,030 (29%) Wholesale 23,506 31,357 (25%) Business Loans 10,852 10,244 6% Credit Cards 12,172 9,386 30% Micro-banking 6,725
Slide 18: Borrowers’ External Rating Profile
Borrowers’ External Rating Profile* – Consistently Moving Up the Risk Curve Dec 31, 2019 Sep 30, 2020 Dec 31, 2020 60,031 49,941 52,024 5,182 8.6% 5,994 12.0% 8,755 16.8% 17,476 29.1% 15,371 15,228 A- or 30.8% A- or 29.3% A- or better better better 69.9% 75.1% 75.2% 19,303 16,122 15,138 32.2% 32.3%
Slide 19: Additional Colour on BBB and BB Rated Exposure
Additional Colour on BBB and BB Rated Exposure BBB Rated Exposure • Fully Secured, granular portfolio both in terms of size and sectoral exposure • Highest sectoral exposure of 1.7% • 320 customers with average exposure of Rs. 30 crore • Highest single exposure is Rs. 256 crore, fully secured BB and
Slide 20: Diversified Industry Mix – Low Industry Concentration
Diversified Industry Mix – Low Industry Concentration Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure NBFC (ex. HFC & DFI) 4,108 99:1 5.6% Construction 2,972 28:72 4.1% Engineering 2,514 32:68 3.4% Power 1,998 41:59 2.7% Real Estate 1,752 89:11 2.4
Slide 21: Asset Quality – Strengthened PCR In the Quarter
Asset Quality – Strengthened PCR In the Quarter Gross NPA by business segment Quarter Ended Business segment Dec 31, Sep 30, Dec 31,2019 Dec 31, Sep 30, Dec 31, 2020 2020 2020 2020 2019 Movement of Gross NPAs Wholesale 800.2 1,500.6 1,437.8 Opening Balance 1,912 1,992 1,539 (+) Additions during the
Slide 22: Asset Quality including Proforma Slippages
Asset Quality including Proforma Slippages Gross NPA by business segment Quarter Ended Business segment Dec 31, Sep 30, Dec 31,2019 Dec 31, Sep 30, Dec 31, 2020 2020 2020 2020 2019 Movement of Gross NPAs Wholesale 1,001.9 1,500.6 1,437.8 Opening Balance 2,001 1,992 1,539 (+) Additions during the % o
Slide 23: Capital Adequacy - Well Capitalized
Capital Adequacy - Well Capitalized Particulars Dec 31, 2020 Dec 31, 2019 Sep 30, 2020 Tier 1 Capital Funds* 12,266 10,236 10,554 Tier 2 Capital Funds 611 721 962 Total Capital Funds 12,877 10,957 11,516 Total RWA 71,818 68,158 69,799 Tier 1 CRAR* 17.1% 15.0% 15.1% Total CRAR* 17.9% 16.1% 16.5% RWA/
Slide 24: CASA Continues Strong Growth; Total Deposits Grew 4% Sequentially
CASA Continues Strong Growth; Total Deposits Grew 4% Sequentially 24% YoY growth in CASA, 4% QoQ ; Total deposits grew by 7% YoY, 4% QoQ CASA : 26.8% CASA : 31.1% CASA : 31.1% CASA : 16,855 CASA : 20,064 CASA : 20,867 62,907 64,506 67,184 12.9% 10.4% 11.4% 16.4% 19.7% 18.1% 73.2% 68.9% 68.9% Dec 31,
Slide 25: Deposits and Liquidity – Improving Granularity Driving Lower Costs
Deposits and Liquidity – Improving Granularity Driving Lower Costs Declining Cost of Deposits and Cost of Funds Surplus Liquidity Position 6.90% 6.71% 6.40% 6.27% 156% 158% 155% 164% 171% 164% 5.98% 5.71% 6.75% 6.59% 6.37% 6.15% 5.92% 5.61% 100% 100% 100% 80% 80% 90% Sep 30, Dec 31, March 31, June 3
Slide 26: Consistently Reducing Borrowings
Consistently Reducing Borrowings Borrowing Breakup 14,893 13,256 5% 2% 6% 12,070 6% 39% 40% 43% 53% 55% 51% December 31, 2019 Sep 30, 2020 December 31, 2020 Refinance FCY CBLO/ LTRO LAF Tier II 26
Slide 27: Investment Book Increase Driven By Surplus Liquidity
Investment Book Increase Driven By Surplus Liquidity Investment Breakup 19,100 21,277 24,939 1% 7% 2% 8% 7% 3% 9% 7% 9% 84% 83% 81% December 31, 2019 Sep 30, 2020 December 31, 2020 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q3 FY21 Q2 FY21 Q3 FY20 9M FY21 9M FY20 Total Inv
Slide 28: Cost of Deposits/ Cost of Funds Trending Lower QoQ
Cost of Deposits/ Cost of Funds Trending Lower QoQ Pre-IPO FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Yield on Advances 10.9% 12.6% 13.1% 12.9% 12.3% 11.7% Cost of Funds 5.8% 8.3% 9.6% 9.4% 8.4% 7.6% Cost of Deposits 5.8% 8.1% 8.9% 8.8% 8.3% 7.7% Post Listing Performance FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20
Slide 29: Distribution Network
Distribution Network
Slide 30: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 7.82 8.49 8.44 8.76 9.08 7.32 GIFT 40 2 city 10 New Delhi branch Sep 30, Dec 31, March 31, June 30, Sep 30, Dec 31, 12 2019 2019 2020 2020 2020 2020 11 11 Channel Breakup 5 Channels Number of transaction points 25
Slide 31: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings
Slide 32: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 5.8 1.4 0.5 Basel III compliant Tier II ICRA AA- hyb (Stable) bonds (Re-affirmed dated Jan 21.7 10, 2020) CARE AA- (Stable) (Re-affirmed dated Oct 8, 35.2 2020) 13.2 Certificate of Deposits ICRA A
Slide 33: Micro-Banking Update
Micro-Banking Update
Slide 34: Micro-Banking Distribution Network
Micro-Banking Distribution Network BC Branches Opened in Q3 FY-21 : 113 (1) (49) 6 (41) Status of Branches : (82) 91 (32) (52) (117) • Micro-Banking Branches : 1,176 (2) 56 51 99 16 • RBL Finserve Branches: 589 (35) (45) (22) (79) 26 • Banking Outlets: 259 83 114 (10) (22) Micro-Banking Presence RBL
Slide 35: Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states
Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states % of % of RBL Portfolio- Top 3 & Top-5 State State Name Portfolio Portfolio 57% 57% Dec’20 Mar’20 39% 39% Bihar 12.6% 14.7% Tamil Nadu 13.6% 13.4% Maharashtra 9.6% 10.7% Karnataka 8.6% 8.8% West Bengal 8.4% 8.5% Sep'2019 Sep'2020 R
Slide 36: Portfolio growth driven by new customers, ticket size growth moderate
Portfolio growth driven by new customers, ticket size growth moderate 3.18 Mn active loan accounts In Rs. crores Loan Tenor 2.70% 22% 28% 30.06% 67.24% 6,725 6,445 5,520 5,028 12 Months 18 Months 24 Months Dec 31,2019 Dec 31,2020 Mar 31,2019 Mar 31,2020 Average Ticket Size (ATS) of new loans Average
Slide 37: Bureau Hit Rate and Rejection Rate
Bureau Hit Rate and Rejection Rate Bureau Hit Rate 83% 81% 73% 77% 70% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Bureau Rejection Rate 35% 25% 24% 19% 20% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Bureau rejection rates have picked up on account of higher delinquencies in the market 37
Slide 38: Credit Card Update
Credit Card Update
Slide 39: Growth & Market Share
Growth & Market Share Nov’19 Nov’20 RBL Industry RBL Industry 3.0 M 60.1 M CIF 2.4 M 54.4 M 22% 10% 2,820 Cr 62,581 Cr Spends 2,543 Cr 60,511 Cr 11% 3% 12,360 Cr 1,14,307 Cr Advances 9,066 Cr 1,05,860 Cr 36% 8% Market Share – Cards (#) Market Share - Spends Market Share - Advances 5.1% 5.0% 4.6% 4.6
Slide 40: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.35 0.36 2.98 3.03 0.33 2.89 2.75 2.80 2.71 2.51 0.20 0.12 0.12 0.12 0.04 Q3'20 Q4'20 Q1'21 Q2'21 Oct'20 Nov'20 Dec'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Oct'20 Nov'20 Dec'20 Advances Breakup (Cr.) Total Spends (Cr.) 9,463 10
Slide 41: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Consumer Loans ('000) Retail Spend 926 960 925 20,594 21,546 20,912 21,173 19,323 20,003 696 15,110 539 11,519 10,564 10,161 9,788 10,403 9,094 5,905 321 329 309 Q3'20 Q4'20 Q1'21 Q2'21 Oct'20 Nov'20 Dec'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Oct'20 Nov'20 Dec'20 Retail Spe
Slide 42: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix 0.75 29% 19% 1.14 0.76 12% 0.94 1.09 71% 69% Salaried Self-Employed TIER1 TIER2 TIER3 Carded Mix Age Group Mix 1.51 1.46 0.83 1.07 13% 18.0% 20.0% 3% 1.13 0.99 27.0% 1.08 35.0% 84% 0.94 Below 30 30-35 35-45 45+
Slide 43: COVID-19 | Spend Impact & Recovery
COVID -19 | Spend Impact & Recovery Spends by category Spends Lockdown* Dec’20 Mar’20 Spend 114% Spend vs Spend vs Spend Type Mix 100% 101% Mar’20 Mar’20 (Online Share) (Online Share) (Online Share) 55% 78% 58% 104% Daily (51%) (61%) (52%) Mar'20 Lockdown* Sep'20 Dec'20 17% 42% 125% Discretionary (1
Slide 44: Credit Cards – moratorium flow and improving collections
Credit Cards – moratorium flow and improving collections Value under Moratorium % Status as on 31st Dec 2020 1.20% 24.0% 21.8% 0.7% 15.7% 0.5% 5% 9.4% 2% Apr'20 Jun'20 Aug'20 Aug exit Morat - as of 30Sep20 90+/ Charged off 30-89 dpd 1-29 dpd Restructured and current Current Collection efficiency (SO
Slide 45: Digital Banking Update
Digital Banking Update
Slide 46: Deeper Connect by enhancing the value proposition in the payments landscape
Deeper Connect by enhancing the value proposition in the payments landscape… 1 7 Correspondent bank Digital Onboarding relationships Interbank Issuance, tieups for Acquiring Nostro services 2 Payment and settlements Cash 6 Collection AEPS, DMT, withdrawal/ through account Indo APIs, transfer Nepal,
Slide 47: Our Continual market standing in the digital space
Our Continual market standing in the digital space… MEITY Digital Acquiring AEPS: RBL # 7 in MFI: RBL 40% Performance: Terminals: RBL # terms of market share Among top 20 1 player with ~27% transaction disbursements players market share processed through API For period Apr’ 20 to Sep’ 20 23.20 53.79
Slide 48: Deepening our digital footprint
Deepening our digital footprint… Issuance Acquiring & API, UPI & INR Remittances FX Products Products Aggregation Others 1L (Aadhaar Enabled Launched RDA services RBL # 1 player with ~27% RBL contributes to 40% Launched two new Payment Services (AEPS)+ for a leading Exchange market share, 12.57 L Po
Slide 49: Engaging across the ecosystem for new solutions
Engaging across the ecosystem for new solutions Customer Emergence of Regulatory Tech 1 New Technology • Digital Onboarding ` Aadhaar Biometric, Api Driven Online Identity, tax checks • Faster Onboarding `Wider Acceptance of Products & Intermediary 2 (Issuer) Services • Account Opening for merchants
Slide 50: Marketing & CSR Update
Marketing & CSR Update
Slide 51: Key Highlights for Q3 FY21
Key Highlights for Q3 FY21 • Launched Visa Direct, an instant payout facility for Fintechs in partnership with Visa facilitating instant, real-time and secure fund settlement on debit and credit cards. • Announced a Bancassurance Partnership with ICICI Prudential Life Insurance • Launched an innovat
Slide 52: Annexures
Annexures
Slide 53: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Prakash Chandra Managing Director and CEO Non – Executive Independent Director (Part Time Chairman) Previously, Managing Director & Country Executive Officer of Bank Previously, Chairman of Central Board of Direct Taxes (CBDT) of America for Indian Sub-cont
Slide 54: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Vishwavir Ahuja Mr. Rajeev Ahuja Managing Director and CEO Executive Director Managing Director & Country Executive Officer of Bank of America Previously, associated with Citibank India, Bank of America, India for Indian Sub-continent from 2007-2009 a
Slide 55: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Bhavtaran Singh (Sunny) Uberai Mr. Pankaj Sharma Head – Client Services Chief Operations Officer Previously, associated with ABN Amro Bank and Arete Financial Previously, Head Retail Operations, Axis Bank Partners, Singapore (35) (20) Mr. San
Slide 56: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY21 Q3 FY20 Q2 FY21 9M FY21 9M FY20 Income Interest Earned 1,980 2,157 2,077 6,292 6,306 Interest Expended 1,072 1,235 1,145 3,411 3,697 Net Interest Income 908 923 932 2,882 2,609 Other Income 580 487 456 1,369 1,410 Total Income 1,488 1,410 1,388 4,251 4,018
Slide 57: Balance Sheet Statement
Balance Sheet Statement Particulars Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Liabilities Capital 598 509 508 Reserves and Surplus 11,986 10,363 10,039 Deposits 67,184 64,506 62,907 Borrowings 12,070 13,256 14,893 Other Liabilities 4,600 4,712 3,110 Total 96,437 93,347 91,458 Assets Cash & Balances wit
Slide 58: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3 FY21 Q3 FY20 Q2 FY21 9M FY21 9M FY20 Income Interest Earned 2,062 2,224 2,163 6,547 6,497 Interest Expended 1,071 1,234 1,144 3,409 3,697 Net Interest Income 991 990 1,019 3,138 2,800 Other Income 574 489 451 1,358 1,416 Total Income 1,565 1,479 1,
Slide 59: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Liabilities Capital 598 509 508 Reserves and Surplus 11,990 10,367 10,021 Deposits 67,105 64,450 62,907 Borrowings 12,070 13,256 14,893 Other Liabilities 4,642 4,721 3,122 Total 96,405 93,303 91,451 Assets Goodwi
Slide 60: Our Recent History
Our Recent History FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 9M Particulars FY21 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,163 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 67,184 Advances (Net) 1,905 4,132 6,376 9,835 14,
Slide 61: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 Please email us your contact details at the above id to get added to our investor relations mailing list Please visit our Investor Relations website – https://ir.rblbank.com/ 61