Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q1 FY25 Earnings Presentation
56 slides from Rbl Bank's earnings presentation, Jul 20, 2024
Slide 1: Exchange disclosure cover letter
July 20, 2024 BSE Limited, National Stock Exchange of India Limited, 1st Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai – 400001 Mumbai -400051 Script Code: 540065 Script Name: RBLBANK Reg: Disclosure under relevant provisions o
Slide 2: Investor Presentation Q1 FY25
Investor Presentation Q1 FY 25 July 20, 2024 1
Slide 3: 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 4: 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 5: Executive Summary
Executive Summary
Slide 6: Major Highlights for Q1 FY25
Major Highlights for Q1 FY25 Improving operating performance.. • Net Interest Income (NII) grew 20% YoY to Rs.1700 crore; NIM at 5.67% • Other Income grew 18% YoY to Rs.805 crore • Operating Profit grew 33% YoY to Rs. 859 crore • Net Profit grew 29% YoY to Rs. 372 crore; RoA at 1.14% and RoE at 9.88
Slide 7: Key Parameters
Key Parameters Deposits up 18% YoY to Advances up 19% YoY to 15.90 mn customers Scale Rs. 101,352 crore Rs. 86,704 crore across segments Retail Assets up 31% YoY; Granular Deposits up 25% ~3.2 lakh customers Growth Drivers Comm. Banking up 25% YoY YoY added in the quarter 15.56% CRAR Avg. LCR for Q4
Slide 8: Consistently delivering robust growth and improving profitability
Consistently delivering robust growth and improving profitability… Advances Deposits Profitability 1.14% 73,087 76,324 79,949 83,987 86,704 85,636 89,780 92,746 103,494 101,352 1.08% 1.01% 1.00% 40,866 44,092 46,371 49,147 53,737 67,045 53,710 57,692 61,407 0.75% 68,349 372 353 18,056 288 294 32,221
Slide 9: Key Ratios
Key Ratios Parameter Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Yield on Advances 12.4% 12.2% 12.8% 13.5% 13.9% 14.0% 14.0% 14.1% 14.2% Cost of Deposits 4.8% 5.1% 5.5% 5.7% 6.1% 6.2% 6.3% 6.4% 6.5% Cost of Funds 4.9% 5.2% 5.6% 5.8% 6.1% 6.3% 6.5% 6.5% 6.6% Net Interest Margin 5.04% 5.02%
Slide 10: Advances and Deposits
Advances and Deposits
Slide 11: 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 62:38 June 2024 June 2023 YoY March 2024 QoQ Net Funded Advances Corporate Banking 23,578 24,719 (5%) 25
Slide 12: Wholesale Advances; growth led by Commercial Banking
Wholesale Advances; growth led by Commercial Banking Wholesale Advances Wholesale Exposure - Rating Breakup (%) 86.1% 85,118 32,221 32,233 33,577 34,840 32,968 A - or Better BBB BB & Below 9,115 7,502 8,345 8,912 9,390 Total Rated Exposure 1.9% 12.0% 25% YoY FB+NFB Top 10 Industries FB-NFB Split % o
Slide 13: Retail Advances growth of 31% YoY
Retail Advances growth of 31% YoY 40,866 44,092 46,371 49,147 53,737 6,605 12% 2,347 1,458 3% 1,721 2,920 2,221 2,159 4% 2,683 1,631 1,360 1,997 6,696 12% 1,484 1,442 6,260 1,351 4% 1,242 3% 5,915 3% 4,779 4,416 11% 15% 8,161 8,182 8,375 7,570 8,077 20% 7,511 7,253 13% 6,827 6,785 6,517 16% 3,888 3,
Slide 14: Retail Disbursement (Excl. Cards)
Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets 4,786 5,002 5,958 6,163 4,152 548 829 939 429 765 361 8% 326 714 412 693 14% 101 2% 269 1,087 315 7% 882 21% 772 1,316 658 14% 440 11% 968 607 13% 834 719 17% 647 526 13% 2,152 2,295 45% 1,985 1,989 1,483 36% Q1 FY24 Q2
Slide 15: Deposits Breakup, growth led by granular deposits
Deposits Breakup, growth led by granular deposits Total deposits grew by 18% YoY; CASA Ratio at 32.6% June 23 March 24 June 24 85,636 103,494 101,352 62.7% 64.8% 67.4% 19.6% 17.4% 17.9% 17.7% 17.8% 14.6% TD SA CA TD SA CA TD SA CA Share of Retail LCR Deposits & CASA Ratios Deposits < Rs. 3 crore LCR
Slide 16: Improving Financial Metrics
Improving Financial Metrics
Slide 17: Fee Income Breakup
Fee Income Breakup Other Income Core Fee Income Breakup 685 875 805 2,489 3,043 640 829 769 2,323 2,876 3% 3% 4% 20% 4% 22% 4% 12% 22% 22% 6% 4% 22% 7% 93% 95% 95% 3% 3% 25% 93% 95% 29% 27% 31% 30% 31% 30% 30% 32% 31% 7% 10% 9% 11% 11% 9% 7% 5% 5% 5% Q1 FY24 Q4 FY24 Q1 FY25 FY23 FY24 Q1 FY24 Q4 FY24
Slide 18: Operating Costs Breakup
Operating Costs Breakup 1,460 1,588 1,646 5,285 6,055 11% 11% 13% 12% 13% 14% 8% 12% 14% 12% 9% 13% 7% 6% 8% 35% 31% 36% 37% 34% 4% 4% 5% 4% 3% 3% 6% 5% 5% 5% 25% 25% 23% 24% 22% Q1 FY24 Q4 FY24 Q1 FY25 FY 23 FY 24 Employee Premises Depreciation Business Acquisition & Collections Payments & General
Slide 19: Stable Asset Quality
Stable Asset Quality
Slide 20: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Jun 2023 Sep 2023 Dec 2023 Mar 2024 June 2024 Opening Balance 2,420 2,404 2,441 2,551 2,271 (+) Additions during the period 555 541 666 680 720 (-) Upgrade 97 53 100 91 66 (-) Recoveries 169 113 100 148 126 (-) Write Offs 304 339 356 721 420 Closing Balance 2,404
Slide 21: Stable Asset Quality
Stable Asset Quality NPA Position PCR 3.22% 85.9% 88.4% 89.3% 89.8% 90.0% 3.12% 3.12% 2.65% 2.69% 75.6% 75.1% 72.7% 73.1% 69.6% 1.05% 0.89% 0.63% 0.74% 0.51% 1.00% 0.78% 0.80% 0.74% 0.44% Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 GNPA NNPA Net Restruct
Slide 22: Credit Costs Trend
Credit Costs Trend Net Credit Cost by Business (bps) 39* 53* 59* 149 231 175 61 150 43 41 40 8 16 3 (1) - (2) 0 (1) Q1 FY24 Q4 FY24 Q1 FY25 FY23 FY24 • Not Annualized for the bank or at individual segment level for the quarter 21
Slide 23: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 24: Adequately Capitalised for Growth
Adequately Capitalised for Growth Total RWA 78,222 80,187 83,353 85,138 88,048 89,482 94,640 98,630 105,007 17.51% 17.37% 16.99% 16.92% 17.07% 16.68% 16.42% 16.18% 15.56% Q3FY24 saw the 16.00% 15.85% 15.49% 15.25% impact of the 15.05% 15.15% 14.58% 14.38% regulatory direction 13.85% of the RBI in No
Slide 25: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings 1.6 Instrument Rating ICRA AA- (Stable) 11.8 (Re-affirmed dated Aug 11, 2023) 30.1 Basel III compliant Tier II bonds CARE AA- (Stable) (Re-affirmed dated March 15, 2024) 28.5 ICRA A1+ (Re-affirmed dated Aug 11, 7.4
Slide 26: Growing Distribution Network
Growing Distribution Network
Slide 27: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Customers (Mn.) Locations Chandigarh 4 14.97 15.57 15.90 13.65 14.31 GIFT 58 2 city 14 New Delhi branch 1 19 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 24 Channel Breakup 15 1 6 Channels Number of transaction points 33 17 June 2023 March 2024 June 20
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 (Q1 FY 25) Advances Deposits Advances Deposits 20%+ CAGR 20%+ CAGR 19% YoY 18% YoY Average CASA Average CASA Granular Deposits Granular Deposits Growth Growth 50%+ 1-2% p.a. 1-2% p.a. 25% (2%) YoY Share of New S
Slide 30: Credit Card Update
Credit Card Update
Slide 31: Credit Cards Growth & Market Share
Growth & Market Share Source RBI Data May’23 May’24 RBL Industry RBL Industry 5.23 M 103.30 M CIF 4.56 M 87.75 M 15% 18% 7,515 Cr 1,65,396 Cr Spends* 6,049 Cr 1,41,026 Cr 24% 17% 17,574Cr# 2,67,979 Cr** Advances 14,121Cr 2,12,410 Cr 24% 26% Business Volumes New A/cs 3.9 lacs 52.6 lacs ₹ 21,625 Cr ₹
Slide 32: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.63 5.19 5.26 0.59 5.04 0.55 0.57 4.81 4.61 0.48 4.41 0.39 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Gross Advances Breakup (Cr.) Total Spends (Cr.) 21,160 21,976 21,
Slide 33: Credit Cards - Portfolio Trends contd.
Credit Cards - Portfolio Trends contd. Consumer Loans Retail Spend # Count ('000) 32,591 47 57 55 30,959 30,431 46 27,207 28,944 27,690 28,043 48 49 13,618 14,417 15,077 13,520 12,656 12,575 12,754 983 1057 1025 1039 892 905 Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Retail Spend/Card R
Slide 34: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights($) Salaried : Self Employed (SE) mix City Tier Mix Age Group Mix CIBIL Cards-in- Force As 0.003 7.91 0.80 1.21 0.97 on 30th Jun 2024 1.00 14% 6% 10% 20% 32% 0.98 32% 23% 21% 68% 0.01 58% 9% 1.03 65% 1.02 40% 1.00 0.02 0.94 Under 30 31-45 45+ LT680 681-730 731
Slide 35: Credit Cards – 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: Co-Brand Partnership Update
Co- Brand Partnership Update Partner Vertical Partner Vertical NBFC Fintech Fintech Entertainment Fintech Fuel Fintech Fintech NBFC Fintech NBFC FMCG Fintech Live for sourcing Co-Brand agreement executed; commercial launch expected in coming months 35
Slide 37: Microfinance Update
Microfinance Update
Slide 38: Microfinance Distribution Network
Microfinance Distribution Network (2) 21 405 1,10,000 + (31) State and 2 UTs Districts Villages (6) (45) (112) (131) (25) Micro-Banking Branches Network 1261 (154) (2) (16) RBL (51) 742 210 947 (37) (86) Finserve (77) (22) (103) Other BCs 233 87 314 (77) Branches Banking Outlet Portfolio Contributio
Slide 39: Microfinance Portfolio Update
Portfolio Update Net Advances In Cr Disbursements In Cr 6517 6785 6942 7511 7451 2002 2308 2162 1996 1489 12% 12% 12% 12% 12% 12% 13% 12% 9% 14% 88% 88% 88% 88% 88% 88% 86% 87% 88% 91% Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 RFL Other BCs RFL Other BCs Average
Slide 40: Branch Productivity
Branch Productivity Disbursement/Branch (Cr.) AUM/Branch (Cr.) 7.32 7.58 6.85 6.90 1.94 1.81 5.91 1.65 1.64 1.18 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Borrower/Branch Borrower (Lakh) 34.62 36.55 2722 2898 32.00 2482 2468 27.60 29.77 2230 Q1_FY24 Q2_FY24 Q3_F
Slide 41: Digital Banking Update
Digital Banking Update
Slide 42: Our digital capabilities.. built to scale
Our digital capabilities.. built to scale… A unified digital platform offering - B2C, B2B, B2BC platform catering to customers across segments.. B2B B2B 2C Leverage our strong API Multi-pronged delivery leveraging ~6 Cr+ 25 L+ capabilities our partnership base Volume p.m on payment channels Live • P
Slide 43: Curated & Expansive Digital Interface
Curated & Expansive Digital Interface Source Digital Onboard Digital Transact Digital Service Phy-gital Monitor Digital Retail Internet Banking Corporate & MSME Banking Revamped, Simplified and Futuristic Revamped, Simplified and Futuristic Net Banking Service Online & Mobility Service Partnership B
Slide 44: Strong suite of platforms and applications
Strong suite of platforms and applications catering to all customer segments.. ✓ ✓ New biller ✓ New feature to block RIB 200 + services category on CIB customers i.e. credentials across channels Rental directly our website ✓ Digital user base ✓ ✓ ✓ ✓ Industry First growth by 15% in Dedicated App Dua
Slide 45: Marketing Update
Marketing Update
Slide 46: Awards & Recognition
Awards & Recognition apno ka ban «| RBL Bank . yas * ’ > - i ‘ = pe . re . 5 8 S ae Cars . q ‘ Ses . oe ) 3 . TOP 100 BRANDS OF INDIA r Brand Finance India Top 100 list for 2023 & 2024 ~ BL Bankis prow tobe stein the Top 100 Brando Iniafor the second year ina ow. ‘This ecogiton by rand Finance, a le
Slide 47: ESG Update
ESG Update
Slide 48: 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 Bank’s Financial literacy: own E&S footprint, and impact of • Bank runs flagship 'Saksh
Slide 49: Annexures
Annexures
Slide 50: 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 51: 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 52: 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. Alok
Slide 53: Profit & Loss Statement
Profit & Loss Statement Particulars Q1 FY25 Q1 FY24 Q4 FY24 FY 24 FY 23 Income Interest Earned 3,496 2,856 3,339 12,394 9,677 Interest Expended 1,796 1,434 1,739 6,351 4,678 Net Interest Income 1,700 1,422 1,600 6,043 4,998 Other Income 805 685 875 3,043 2,489 Total Income 2,505 2,108 2,475 9,086 7,
Slide 54: Balance Sheet
Balance Sheet Particulars June 2024 March 2024 June 2023 Liabilities Capital 606 605 600 Reserves and Surplus 14,673 14,191 13,277 Deposits 1,01,352 1,03,494 85,636 Borrowings 13,577 14,184 14,775 Other Liabilities 5,576 5,958 4,064 Total 1,35,784 1,38,432 1,18,353 Assets Cash & Balances with RBI 7,
Slide 55: Historical Performance
Historical Performance Particulars FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 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 14,206 14,646 Deposits 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,007 84
Slide 56: Thank you
Thank you apno ka bank | RBL Bank 55