Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q1 FY23 Earnings Presentation
57 slides from Rbl Bank's earnings presentation, Jul 21, 2022
Slide 1: Investor Presentation Q1 FY23
Investor Presentation Q1 FY 23 July 21, 2022 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: RBL Bank Q1 FY23 Snapshot
RBL Bank Q1 FY23 Snapshot Improving Financial Metrics Diversified Advances with Growing Granular Deposits Growing Retail ▪ NIM at 4.4% ▪ Total Advances of Rs. 60,270 ▪ Other Income 37.4% of Total ▪ Total Deposits of Rs. 79,216 crore crore ▪ Total Deposits grew 6% YoY Income ▪ 51:49 Retail:Wholesale
Slide 5: Q1 FY23 Key Financial Highlights
Q1 FY23 Key Financial Highlights Advances Rs. 60,270 crore Wholesale Advances Rs. Deposits Rs. 79,216 crore CASA Rs. 28,526 crore Healthy 29,756 crore Balance 7% YoY ~ Flat QoQ 22% YoY 4% QoQ 6% YoY ~ Flat QoQ 14% YoY 2% QoQ Sheet NII Rs. 1,028 crore Core Fee Income Rs. 531 Net Revenue Rs. 1,641 Pro
Slide 6: Key Drivers
Key Drivers Well Diversified Advances; leading market share in Credit Cards Strong Liability Franchise; Increasing reliance on granular Retail Deposits Improving Financial Metrics; Increased focus on Profitable Growth of Balance Sheet Improving Asset Quality with Prudent Provisioning Healthy Capital
Slide 7: Well Diversified Advances
Well Diversified Advances
Slide 8: Well Diversified Advances
Well Diversified Advances Advances by Segment (%) • 83.3% of Wholesale Exposure is to A- or better rated customers 49.4% • Wholesale Exposure is well diversified across 50.6% industries with top 10 industries accounting for only 28.7% of total exposure • Bank is 5th largest Credit Card issuer in Ind
Slide 9: Advances Mix; Wholesale Drives YoY Growth
Advances Mix; Wholesale Drives YoY Growth Yield June 30,2022 June 30,2021 YoY Proportion Q1FY23 C&IB 23,111 18,464 25% 6.6% CB 6,645 5,992 11% (6.7%) 49% Wholesale 29,756 24,456 22% Business Loans 7,547 10,103 (25%) Credit Cards 14,036 12,039 17% Micro-Banking 3,753 5,881 (36%) Housing Loans 2,563 1
Slide 10: Borrower's External Rating Profile
Borrower’s External rating Profile June 30, 2021 March 31, 2022 June 30, 2022 51,313 58,147 59,163 8,925 17.4% 11,246 19.3% 11,240 19.0% A- or A- or A- or 15,449 30.1% better 19,065 32.8% better 21,236 35.9% better 77.6% 81.6% 83.3% 15,431 30.1% 17,115 29.4% 16,825 28.4% 8,577 16.7% 15.5%** 8,254 7,
Slide 11: Diversified Industrial Concentration
Diversified Industrial Concentration Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure NBFC (ex. HFC & DFI) 3,503 100:0 4.5% Power 2,643 57:43 3.4% Construction 2,541 29:71 3.2% Retail/ Distribution 2,366 70:30 3.0% HFC 2,332 100:0 3.0% Metals 2,109
Slide 12: Strong Liability Franchise
Strong Liability Franchise
Slide 13: CASA & Total Deposits - Healthy Growth YoY
CASA & Total Deposits - Healthy Growth YoY 14% YoY growth in CASA ; Total deposits grew by 6% YoY CASA : 33.7% CASA : 35.3% CASA : 36.0% CASA : 25,071 CASA : 27,879 CASA : 28,526 79,007 79,216 74,471 14.6% 15.4% 12.8% 20.7% 20.6% 20.9% 66.3% 64.7% 64.0% June 30, 2021 March 31, 2022 June 30, 2022 Ter
Slide 14: Deposits, Liquidity and Cost Trends
Deposits, Liquidity and Cost Trends Declining Cost of Funds and Cost of Deposits Surplus Liquidity Position 11.46% 11.22% 11.62% 11.31% 11.26% 12.22% 11.22% 171% 164% 154% 5.76% 134% 155% 146% 138% 149% 5.54% 5.27% 5.10% 4.82% 4.81% 4.87% 5.71% 5.45% 5.20% 5.01% 4.76% 4.75% 4.84% 100% 100% 100% 100%
Slide 15: Improving Financial Metrics
Improving Financial Metrics
Slide 16: Net Profit Improves QoQ
Net Profit Improves QoQ Q1 Q1 Q4 Parameter YoY QoQ FY22 FY23 FY22 FY22 Net Interest Income 1,028 970 6% 1,131 (9%) 4,027 Other Income 614 653 (6%) 511 20% 2,341 Net Total Income 1,641 1,623 1% 1,643 (0%) 6,367 Operating Profit 529 766 (31%) 657 (20%) 2,745 Provisions (Other than Tax) 253 1,384 (82%)
Slide 17: Core Fee Income increasing QoQ
Core Fee Income increasing QoQ Other Income Core Fee Income Breakup 653 511 614 494 516 531 5% 4% 4% 24% 13% (1%) 63% 56% 62% 76% 101% 87% 5% 3% 3% 14% 14% 13% 7% 12% 6% 11% 10% 11% Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 FX Proc Fee Gen. Banking Distribution Credit Cards Trade and Others 17
Slide 18: Operating Costs Increase Driven By Business Volume Growth; Credit Costs Lower QoQ
Operating Costs Increase Driven By Business Volume Growth; Credit Costs Lower QoQ Operating Expenses Net Credit Cost by Business (bps) 1,112 255* 71* 43* 985 258 857 58% 57% 55% 4% 5% 4% 10% 12% 65 12% 42 27% 28% 28% 6 (3) 1 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 • Not Annualized for the ba
Slide 19: Improving Asset Quality
Improving Asset Quality
Slide 20: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended June 30, 2022 March 31, 2022 Dec 31, 2021 Sep 30, 2021 June 30, 2021 Movement of Gross NPAs Opening Balance 2,728 2,902 3,131 2,911 2,602 (+) Additions during the period 653 619 766 1,217 1,342 (-) Upgrade 192 105 181 180 157 (-) Recoveries 188 222 271 290 116 (-
Slide 21: Asset Quality – NPA Position Further Improves in Q1 FY23
Asset Quality – NPA Position Further Improves in Q1 FY23 Gross NPA by business segment Business segment June 30, 2022 March 31, 2022 Dec 31, 2021 Sep 30, 2021 June 30, 2021 Wholesale 1,087 1,044 1,010 1,085 1,070 Retail 1,450 1,684 1,892 2,046 1,841 Business Loans 377 378 353 363 472 Credit Cards 32
Slide 22: Loan Provisions & Restructured Advances on 30th June 2022
Loan Provisions & Restructured Advances on 30th June 2022 Loan Provisions Breakup Particulars As of 30th For Q1 FY23 June 2022 NPA Specific Provision (towards PCR) 1,840 378 Restructured Provision (outside PCR) 322 (33) Standard Provision (outside PCR) 306 (16) Recovery on written off accounts - (81
Slide 23: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 24: Capital Adequacy – Well Capitalized
Capital Adequacy – Well Capitalized Particulars June 30, 2022 June 30, 2021 March 31, 2022 Tier 1 Capital Funds* 12,517 11,850 12,301 Tier 2 Capital Funds 1,180 780 470 Total Capital Funds* 13,697 12,630 12,771 Total RWA 78,222 73,635 75,909 Tier 1 CRAR* 16.0% 16.1% 16.2% Total CRAR* 17.5% 17.2% 16.
Slide 25: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.8 0.6 Basel III compliant Tier II bonds ICRA AA-& 8.6 (Retained dated Feb 9, 2022) CARE AA- (Stable) 38.0 (Re-affirmed dated Oct 6, 2021) 26.1 Certificate of Deposits ICRA A1+ (Re-affirmed dated
Slide 26: Growing Distribution Network
Growing Distribution Network
Slide 27: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 10.66 11.15 11.30 9.08 9.63 9.83 9.97 GIFT 52 2 city 13 New Delhi Dec 31, March 31, June 30, Sep 30, Dec 31, March 31, June 30, branch 2020 2021 2021 2021 2021 2022 2022 16 21 Channel Breakup 13 1 6 Channels Numbe
Slide 28: Digital Initiatives
Digital Initiatives
Slide 29: Market recognition for Digital Initiatives
Market recognition for Digital Initiatives LAUNCHES AWARDS • Collaborated with Amazon Pay, to offer users with seamless and convenient UPI services. • Partnered with Juspay for UPI switch for merchant acquiring to get enhanced tech capabilities and support Awarded Best Bank for Digital Solutions in
Slide 30: 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 Digital Onboarding bank relationships Interbank tieups Issuance, for Nostro Acquiring settlements services 2 Payment and Cash withdrawal/ 6 Collection through AEPS, DMT, account APIs, Indo transfer eNACH N
Slide 31: Our Continual market standing in the digital space
Our Continual market standing in the digital space… QOQ Increase in Acquiring Txn Volume ~ 16.14% For period April22 to June22 70.96 L 8.7 CR Overall BAAS Total Transaction Customers* Volume (in nos.) * Overall number of Payment Aggregator, Wallet holders, AEPS and DMT CSPs. 31
Slide 32: Deepening our digital footprint
Deepening our digital footprint… Acquiring & Issuance Products INR Remittances FX Products API, UPI & Others Aggregation • Commenced development and • 2.41 Lac Unique • Launched outward • Escrow agreement • The Bank has testing a state of art Customer Service remittance product signed with Razorpay
Slide 33: Credit Card Update
Credit Card Update
Slide 34: Credit Card Growth & Market Share Trend
Credit Card Growth & Market Share Trend May’21 May’22 RBL Industry RBL Industry 3.8 M 76.9 M CIF 3.0 M 62.4 M 26% 23% 4,599 Cr 1,14,024 Cr Spends 2,679 Cr 55,033 Cr 72% 107% 14,030 Cr 1,54,137 Cr Advances 12,161 Cr 1,18,512 Cr 15% 30% Market Share – Cards (#) Market Share - Spends Market Share - Adv
Slide 35: Credit Card Portfolio Trends
CreditPortfolio Credit Card Cards - Portfolio Trend Trends Cards in Force (Million) Acquisition (Million) 0.60 3.75 3.83 3.91 3.68 0.45 3.46 0.43 3.08 3.10 0.29 0.24 0.14 0.14 0.15 Q1'22 Q2'22 Q3'22 Q4'22 Apr'22 May'22 Jun'22 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Apr'22 May'22 Jun'22 Advances Breakup (Cr.)
Slide 36: Credit Card Portfolio Trend contd.
Credit Card Portfolio Trend contd. Retail Spend Consumer Loans ('000) 1,042 24,963 25,228 24,145 25,285 24,852 855 841 23,611 21,232 757 753 10,984 11,809 11,836 10,986 11,803 11,136 9,620 273 293 276 Q1'22 Q2'22 Q3'22 Q4'22 Apr'22 May'22 Jun'22 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Apr'22 May'22 Jun'22 Ret
Slide 37: Credit Card Customer Segment Insights
Credit Card Customer Segment Insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 1.48 1.54 0.78 1.15 0.97 0.77 As on 30th June Cards-in- Force 3% 15% 21% 17% 31% 30% 69% 81% 60% 10% 2022 0.82 1.10 62% 1.03 1.01 0.94 Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded Bur
Slide 38: Credit Card Retail Spend - Portfolio Trends
CreditRetail Credit Card Cards Spend - Portfolio Trends Insights 180% SPEND # ACROSS CATEGORY 10,151 Cr 160% Daily Discretionary Travel 140% 6,111 Cr 2,319 Cr 120% 1,702 Cr 100% 644 Cr 80% 667 Cr 60% 40% 20% 0% DJF'FY Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 20 Daily 100% 63% 8
Slide 39: Credit Cards – tighter control on new bookings resulting in delinquencies in line with industry
Credit Cards – tighter control on new bookings resulting in delinquencies in line with industry 3MOB$30+ Comparison with Industry 12.0% INDUSTRY RBL Refer note below 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Note: • In the bureau, higher uptick seen in industry delinquency rates in Dec’20-Feb’21 period on acco
Slide 40: Credit Card Tighter risk measures on new acquisition – lowering risk in the portfolio
Credit Card Tighter risk measures on new acquisition – lowering risk in the portfolio Lower value @ risk for same number Higher proportion of low risk clients delinquency vs industry* 5.0 90% Pre-Covid 4.5 80% 4.0 Post-Covid 3.5 70% 3.0 60% 2.5 1.92 2.03 50% 1.66 1.81 1.81 2.0 1.51 1.50 1.59 40% 1.3
Slide 41: Credit Card Conservative exposure strategy post Covid on new acquisition
Credit Card Conservative exposure strategy post Covid on new acquisition - lower value at risk Prudent Credit limit assignment Average Credit Limit for new customers 1,60,000 Pre-Covid 99,475 1,40,000 Post-Covid 1,20,000 80,679 1,00,000 61,411 80,000 45,145 45,042 60,000 44,260 40,000 20,000 Risk Ca
Slide 42: Micro-Banking Update
Micro-Banking Update
Slide 43: Micro-Banking Distribution Network
Micro-Banking Distribution Network (1) BC Branches Opened in FY23 : 3 (2) (49) 6 State & District Presence: (43) (85) • 21 States and 2 Union Territory 104 (61) (32) (120) (2) • 415 Districts 59 (53) 92 16 (46) (49) (72) Branches : 26 122 83 (67) • Micro-Banking Branches : 1,225 (23) Micro-Banking P
Slide 44: Micro-Banking Portfolio Concentration
Micro-Banking Portfolio Concentration State Name % of Portfolio % of Portfolio Top-3 & Top-5 State Concentration June’22 Mar’22 61% 60% 54% Bihar 19.4% 18.9% 50% 45% 46% Rajasthan 14.9% 14.7% 37% 37% Uttar Pradesh 11.3% 11.2% Tamil Nadu 8.7% 9.2% Karnataka 6.1% 6.4% Haryana 5.8% 5.7% Maharashtra 5.2
Slide 45: Micro-Banking Portfolio update
Micro-Banking Portfolio update 2.72 Million active loan accounts Gross Advances Breakup Standard Advances Breakup 81% 7,265 6,469 5,038 5,501 4,206 19% New Book Post Covid Old Book Pre Covid Mar 31,2019 Mar 31,2020 Mar 31,2021 Mar 31,2022 June 30,2022 Average Ticket Size (ATS) of new loans Average O
Slide 46: Micro-Banking – Collection Efficiency
Micro-Banking – Collection Efficiency Collection-Efficiency 96.90% 97.03% 96.79% 97.79% 95.32% 94.14% 92.81% 89.53% 90.60% 88.83% 83.48% 82.24% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Collections Efficiency Collection Efficiency- Non- NPA Book Collection Efficiency- Non-NPA Book* 99.64% 99.53% 99.
Slide 47: Experienced Board and Leadership Team
Experienced Board and Leadership Team
Slide 48: Board of Directors
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, Indian Bank and
Slide 49: 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 50: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Deepak Gaddhyan Mr. Pankaj Sharma Chief Credit Officer (Wholesale) Chief Operations Officer Previously, associated with ICICI Bank, Yes Bank Previously, Head Retail Operations, Axis Bank (27) (21) Mr. Sanker Parameswaran Mr. R. Rajagopalan He
Slide 51: Annexures
Annexures
Slide 52: Balance Sheet
Balance Sheet Particulars June 30, 2022 March 31, 2022 June 30, 2021 Liabilities Capital 600 600 598 Reserves and Surplus 12,252 12,019 11,610 Deposits 79,216 79,007 74,471 Borrowings 11,871 11,093 10,046 Other Liabilities 3,793 3,491 3,616 Total 107,732 106,209 100,342 Assets Cash & Balances with R
Slide 53: Profit & Loss Statement
Profit & Loss Statement Particulars Q1 FY23 Q1 FY22 Q4 FY22 FY22 Income Interest Earned 2,089 2,026 2,131 8,176 Interest Expended 1,062 1,056 1,000 4,149 Net Interest Income 1,028 970 1,131 4,027 Other Income 614 653 511 2,341 Total Income 1,641 1,623 1,643 6,367 Expenditure Operating Expenses 1,112
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars June 30, 2022 March 31, 2022 June 30, 2021 Liabilities Capital 600 600 598 Reserves and Surplus 12,172 11,931 11,611 Deposits 79,216 79,006 74,422 Borrowings 11,871 11,098 10,046 Other Liabilities 3,840 3,528 3,642 Total 107,699 106,163 100,320 Assets Goodwill
Slide 55: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q1 FY23 Q1 FY22 Q4 FY22 FY22 Income Interest Earned 2,203 2,103 2,201 8,445 Interest Expended 1,062 1,056 1,000 4,148 Net Interest Income 1,141 1,048 1,201 4,297 Other Income 614 660 513 2,352 Total Income 1,755 1,708 1,714 6,648 Expenditure Operating
Slide 56: Historical Performance
Historical Performance FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 Q1 Particulars FY23 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 12,006 12,155 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,007 79,216
Slide 57: Thank you
Thank you apno ka bank | RBL Bank 57