Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q4 FY21 Earnings Presentation
66 slides from Rbl Bank's earnings presentation, May 4, 2021
Slide 1: Investor Presentation Q4 FY21
Investor Presentation 4th Quarter/ Q4 FY 21 May 4, 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 Branch and Business Banking Update 47 Digital Banking Update 51 Marketing & CSR Update 55 Annexures 57 4
Slide 5: Key Performance Highlights
Key Performance Highlights
Slide 6: Q4 and FY21 Financial Highlights
Q4 and FY21 Financial Highlights YoY Revenue growth of 5% powered by Other Income growth of 38% Despite COVID impact, consistent growth in PPOP every quarter leading to PPOP growth of 17% YoY (9% growth sequentially) to Rs. 877 crore Net Profit at Rs. 508 crore for FY21, similar to FY20, down QoQ du
Slide 7: Q4 FY21 Highlights Contd....
Q4 FY21 Highlights Contd…. Strong Revenue and Operating Handsome Deposit Growth Healthy Capitalisation and Profit Growth Liquidity Levels continued ▪ Total Deposits grew 26% YoY and ▪ Core Fee Income grew 40% YoY, 9% QoQ ▪ CRAR at 17.5% and CET 1 to 33% QoQ ▪ CASA grew 36% YoY and 11% 16.6% ▪ Sequen
Slide 8: FY21 Highlights
FY21 Highlights YoY Growth Net interest Income Rs. 3,788cr 4% Core Fee Income Rs. 1,757cr 1% Net Total Income Rs. 5,845cr 6% Operating Profit Rs. 3,091cr 14% Net Profit Rs. 508cr 0% 8
Slide 9: FY21 Highlights Contd....
FY21 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 58,623cr 1% 4% Wholesale Rs. 24,233cr (12%) 3% Advances Retail Rs. 34,390cr 13% 4% Advances Deposits Rs. 73,121cr 26% 9% CASA Rs. 23,264cr 36% 11% 9
Slide 10: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 13.3% 58.7% 41.3% 18.5% Wholesale Retail 68.2% Retail Advances Breakup (%) 3.4% 4.3% 4.9% 31.3% 20.7% Term Deposits Saving Deposits Current Deposits 35.4% Business Loans Credit Cards Microbanking Housing Loans Agri Others
Slide 11: Financial Performance
Financial Performance
Slide 12: Strong PPOP Momentum Despite COVID Impact
Strong PPOP Momentum Despite COVID Impact Parameter Q4 FY21 Q3 FY21 QoQ Q4 FY20 YoY FY21 FY20 Net Interest Income 906 908 0% 1,021 (11%) 3,788 3,630 Other Income 688 580 19% 501 38% 2,058 1,910 Net Total Income 1,594 1,488 7% 1,522 5% 5,845 5,540 Operating Profit 877 805 9% 752 17% 3,091 2,714 Net P
Slide 13: Balance Sheet Parameters
Balance Sheet Parameters Parameter March 31,2021 March 31,2020 YoY Advances 58,623 58,019 1% Deposits 73,121 57,812 26% Investments 23,230 18,150 28% Parameter March 31,2021 Dec 31,2020* March 31,2020 CASA 31.8% 31.1% 29.6% GNPA 4.34% 4.57% 3.62% NNPA 2.12% 2.52% 2.05% PCR (incl. Technical Write-off
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 2,058 1,757 1,743 9% 13% 1,910 15% 688 660 580 54% 4% 497 56% 500 21% 470 9% 14% 7% 6% 7% 50% 96% 3% 56% 86% 66% 3% 91% 11% 85% 94% 11% 4% 3% 13% 12% 2% 10% 8% 9% 12% 8% 7% 10% 9% 9% 7% 8% Q4 FY20 Q3 FY21 Q4
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 2,826 2,755 770 683 718 60% 54% 62% 55% 57% 6% 5% 9% 7% 5% 6% 6% 7% 9% 9% 31% 26% 27% 31% 29% Q4 FY20 Q3 FY21 Q4 FY21 FY 20 FY 21 15
Slide 16: Credit Costs including Accelerated/ Additional Provisioning
Credit Costs including Accelerated/ Additional Provisioning Net Credit Cost by Business (bps) 99* 112* 113* 339 410 301** 128** 217 60 122 56 109 52 43 Q4 FY20 Q3 FY21 Q4 FY21 FY 20 FY 21 (14) • Not Annualized for the bank or at individual segment level for the quarter 16 ** Includes Rs. 70 crore ad
Slide 17: Advances Mix and Growth Driven By Retail
Advances Mix and Growth Driven By Retail Yield Mar 31,2021 Mar 31,2020 YoY Proportion FY 21 C&IB 18,323 19,846 (8%) of which IFI 1,091 1,648 (34%) 7.6% (9.1%) 41% CB 5,910 7,611 (22%) Wholesale 24,233 27,457 (12%) Business Loans 10,765 10,457 3% Credit Cards 12,177 10,509 16% Micro-banking 7,132 6,4
Slide 18: Borrowers' External Rating Profile
Borrowers’ External Rating Profile* – Consistently Moving Up the Risk Curve Mar 31, 2020 Dec 31, 2020 Mar 31, 2021 56,163 52,024 51,991 4,710 8.4% 8,755 16.8% 9,386 18.1% 17,451 31.1% A- or 15,228 29.3% A- or A- or 15,766 30.3% better better better 72.8% 75.2% 77.6% 18,707 33.3% 15,138 29.1% 15,176
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 1.6% • 295 customers with average exposure of Rs. 30 crore • Highest single exposure is Rs. 260 crore, fully secured • Redu
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) 3,466 99:1 4.6% Construction 3,031 28:72 4.1% Power 2,623 39:61 3.5% Retail/ Distribution 2,018 71:29 2.7% Engineering 1,999
Slide 21: Asset Quality – Strengthened PCR During FY21
Asset Quality – Strengthened PCR During FY21 Quarter Ended March 31, 2021 Dec 31, 2020 Sep 30, 2020 June 30, 2020 March 31,2020 (Proforma) (Proforma) Movement of Gross NPAs Opening Balance 2,610 2,001 1,992 2,137 2,010 (+) Additions during the period 1,439 1,470 234 5 709 (-) Upgrade 322 5 3 3 53 (-
Slide 22: Asset Quality – Net NPA stable YoY despite Covid challenges
Asset Quality – Net NPA stable YoY despite Covid challenges Gross NPA by business segment Business segment Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 June 30, Mar 31,2020 (Proforma) (Proforma) 2020 Wholesale 1.85% 1.75% 2.62% 2.67% 2.64% Retail 2.49% 2.82% 0.87% 0.78% 0.98% Business Loans 0.47% 0.90% 0.
Slide 23: Capital Adequacy - Well Capitalized
Capital Adequacy - Well Capitalized Particulars March 31, 2021 March 31, 2020 Dec 31, 2020 Tier 1 Capital Funds* 12,301 10,324 12,266 Tier 2 Capital Funds 637 751 611 Total Capital Funds 12,938 11,075 12,877 Total RWA 73,948 67,326 71,818 Tier 1 CRAR* 16.6% 15.3% 17.1% Total CRAR* 17.5% 16.4% 17.9%
Slide 24: CASA Continues Strong Growth; Total Deposits Grew 9% Sequentially
CASA Continues Strong Growth; Total Deposits Grew 9% Sequentially 36% YoY growth in CASA, 11% QoQ ; Total deposits grew by 26% YoY, 9% QoQ CASA : 29.6% CASA : 31.1% CASA : 31.8% CASA : 17,116 CASA : 20,867 CASA : 23,264 57,812 67,184 73,121 13.3% 12.9% 13.0% 18.5% 18.1% 16.6% 70.4% 68.9% 68.2% March
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% 154% 5.98% 5.71% 5.45% 6.75% 6.59% 6.37% 6.15% 5.92% 5.61% 5.32% 100% 100% 100% 80% 80% 90% 90% Sep 30, Dec
Slide 26: Consistently Reducing Borrowings
Consistently Reducing Borrowings Borrowing Breakup 17,007 12,070 11,226 4% 8% 39% 6% 7% 43% 34% 48% 51% 59% March 31,2020 December 31,2020 March 31,2021 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 18,150 24,939 23,230 1% 2% 7% 8% 10% 2% 6% 3% 8% 82% 84% 86% March 31, 2020 December 31, 2020 March 31, 20201 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Total Investme
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 9.63 7.32 GIFT 45 2 city 10 New Delhi Sep 30, Dec 31, March June 30, Sep 30, Dec 31, March branch 2019 2019 31, 2020 2020 2020 2020 31, 2021 13 14 Channel Breakup 12 5 Channels Number of t
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 1.4 1.5 Basel III compliant Tier II ICRA AA- hyb (Stable) 6.1 bonds (Re-affirmed dated Feb 22.8 22, 2021) CARE AA- (Stable) (Re-affirmed dated Oct 8, 31.9 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 FY-21 : 173 (1) (50) 6 (42) (82) 93 State & District Presence: (54) (32) (118) (2) • 21 States and 1 Union Territory 58 99 16 (47) (47) 51 • 415 Districts (22) (79) 26 83 Branches : 115 (10) (23) Micro-Banking Presence • Micro-Banking Branches
Slide 35: Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states
Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states RBL Portfolio-Top3 and Top5 States % of % of State Name Portfolio Portfolio 58% 56% 54% Mar’21 Mar’20 41% Tamil Nadu 12.9% 13.4% 39% 36% Bihar 12.8% 14.7% Rajasthan 10.9% 7.3% Karnataka 9.0% 8.8% Maharashtra 8.4% 10.7% Mar'19 Mar'2
Slide 36: Portfolio growth driven by new customers, ticket size growth moderate
Portfolio growth driven by new customers, ticket size growth moderate 3.33 Mn active loan accounts Advances Disbursement 2,250 In Rs. crores 12% 28% 1,530 978 7,265 2,132 6,469 1,759 1,518 5,038 1,273 1,249 1,150 992 974 929 887 800 621 21 Mar 31,2019 Mar 31,2020 Mar 31,2021 Q1 Q2 Q3 Q4 FY18 FY19 FY
Slide 37: Micro Banking - Portfolio Outlook
Micro Banking - Portfolio Outlook Portfolio composition Collection Effiicency 99% 101% 98% 98% 97% 93% 47% 53% 62% Old Book-Pre-Covid New Book-Post Covid Sep'19 Dec'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 6.85% 6.05% 90+ dpd comparison 5.35% 5.19% 4.98% 4.71% 2.50% 1.75% 0.95% 1.24% 0.56% 0.55% 0.81%
Slide 38: Credit Card Update
Credit Card Update
Slide 39: Growth & Market Share
Growth & Market Share Feb’20 Feb’21 RBL Industry RBL Industry 2.9 M 61.6 M CIF 2.6 M 57.2 M 10% 8% 2,864 Cr 60,357 Cr Spends 2,795 Cr 62,903Cr 2% -4% 12,719 Cr 1,16,290 Cr Advances 10,551 Cr 1,10,946 Cr 21% 5% Market Share – Cards (#) Market Share - Spends Market Share - Advances 4.6% 4.8% 4.7% 4.8%
Slide 40: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force* (Million) Acquisition (Million) 2.89 2.96 2.82 2.85 0.38 2.71 0.35 0.36 2.66 2.61 0.20 0.14 0.13 0.12 0.04 Q4'20 Q1'21 Q2'21 Q3'21 Jan'21 Feb'21 Mar'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Jan'21 Feb'21 Mar'21 Advances Breakup (Cr.) Total Spends (Cr.) 10,620
Slide 41: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Consumer Loans ('000) Retail Spend 960 925 22,684 876 21,173 20,441 19,323 20,003 20,105 696 15,110 539 10,564 10,403 11,455 9,094 10,118 9,827 5,905 300 286 291 Q4'20 Q1'21 Q2'21 Q3'21 Jan'21 Feb'21 Mar'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Jan'21 Feb'21 Mar'21 Retail Spe
Slide 42: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix 0.79 20% 1.14 29% 12% 0.89 68% 1.06 71% 0.94 Salaried Self-Employed TIER1 TIER2 TIER3 Age Group Mix Carded Mix 1.90 0.88 18% 20% 1.04 13% 1.23 3% 27% 0.90 0.99 35% 1.06 84% Below 30 30-35 35-45 45+ NTC Bureau Te
Slide 43: Spend Recovery
Spend Recovery Spend Impact and Recovery Spends by category Spend per Spends Spend Type# Mar’20 Mar’21 Card ratio 128% (Mar’21 vs 114% Mar’20) 100% 101% Daily 78% 76% 1.14 55% Ecom 51% 53% 1.18 POS 49% 47% 1.10 Discretionary 17% 20% 1.35 Mar'20 Lockdown* Sep'20 Dec'20 Mar'21 Ecom 16% 21% 1.74 * Apr
Slide 44: Credit Cards – tighter control on new bookings resulting in lower delinquencies than industry
Credit Cards – tighter control on new bookings resulting in lower delinquencies than industry. 6 MOB30+ spike as these cards immediately went into lockdown 6MOB$30+ Comparison with Industry without moratorium eligibility. 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% No dpd movement due to moratorium 0.0% Jan'
Slide 45: Tighter risk measures on new acquisition – lowering risk in the portfolio
Tighter risk measures on new acquisition – lowering risk in the portfolio 2.50 Lower value @ risk for same number Higher proportion of low risk clients delinquency vs industry 70% Pre-Covid 2.00 60% 1.92 Post-Covid 1.66 50% 1.50 1.50 1.51 1.37 1.32 1.26 40% 1.00 30% 0.92 20% 0.50 10% 0.00 0% Apr'19
Slide 46: Conservative exposure strategy post Covid on new acquisition
Conservative exposure strategy post Covid on new acquisition - lower value at risk Prudent Credit limit assignment Average Credit Limit for new customers 120,000 101,404 Pre-Covid 110,000 Post-Covid 61,411 100,000 45,042 90,000 48,479 37,866 80,000 70,000 Risk Category 1 Risk Category 2 Risk Categor
Slide 47: Branch and Business Banking Update
Branch and Business Banking Update
Slide 48: Granularity in Branch Banking
Granularity in Branch Banking 61% 33% 90% CASA Growth in CASA Incremental growth of Growth in CASA MEB acquisition from Q4 total deposits of FY21 over Mar’20 20 to Q4 21 is retail LCR 90% 47% 77% TERM DEPOSIT Contribution of >1 Growth in TD Contribution of <5Cr year tenure TD in FY acquisition from
Slide 49: Growth in Digital
Growth in Digital New Contactless New Segmented Apps Debit cards Investments in Mutual funds are source online 86% (Volume) 60% Total Deposits (FD & RD) sourced Digitally Cardless cash Paperless onboarding withdrawal Unique adoption digital channels Mobile/ 62% eBanking/ Chatbot/ whatsapp Instant Vi
Slide 50: Growing through partnerships – Open banking
Growing through partnerships – Open banking Our Strategy Our Proposition Video KYC Virtual account Reconciliation Our Partners Risk based Access ChatBot Card control Co branded Debit card Service requests 50
Slide 51: Digital Banking Update
Digital Banking Update
Slide 52: 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 53: Our market standing in the digital space
Our market standing in the digital space… API Hits: AEPS: RBL # 5 in MFI: RBL 25% market 5L payment API hits terms of transaction share disbursements daily processed through API For period Apr’ 20 to Sep’ 20 23.20 63.51 L ~40 CR CR Total Number of Total Transaction Total no of API calls Customers Vo
Slide 54: Deepening our digital footprint
Deepening our digital footprint… Acquiring & Issuance Products INR Remittances FX Products API, UPI & Others Aggregation • eKYC based BC agent • CUG testing for a large • QOQ transaction volume • Achieved over ~25% market • 5 clients in pipeline over the onboarding. exchange house offering growth of
Slide 55: Marketing & CSR Update
Marketing & CSR Update
Slide 56: Key Highlights for Q4 FY21
Key Highlights for Q4 FY21 Won 3 accolades at coveted National and International Awards India’s Best Bank for CSR Best Emerging Digital Technologies Best Enterprise Resilience Project Asiamoney Awards 2021 The Asset Triple A Digital Awards 2021 Business Today KPMG Best Banks Jury Award Tie-up Announ
Slide 57: Annexures
Annexures
Slide 58: 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 59: 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 60: 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 61: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 Income Interest Earned 1,922 2,208 1,980 8,215 8,514 Interest Expended 1,016 1,187 1,072 4,427 4,885 Net Interest Income 906 1,021 908 3,788 3,630 Other Income 688 501 580 2,058 1,910 Total Income 1,594 1,522 1,488 5,845 5,540 Exp
Slide 62: Balance Sheet Statement
Balance Sheet Statement Particulars March 31, 2021 Dec 31, 2020 March 31, 2020 Liabilities Capital 598 598 509 Reserves and Surplus 12,065 11,986 10,074 Deposits 73,121 67,184 57,812 Borrowings 11,226 12,070 17,007 Other Liabilities 3,641 4,600 3,576 Total 100,651 96,437 88,978 Assets Cash & Balance
Slide 63: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 Income Interest Earned 2,014 2,282 2,062 8,561 8,779 Interest Expended 1,016 1,188 1,071 4,425 4,885 Net Interest Income 998 1,094 991 4,136 3,894 Other Income 691 502 574 2,049 1,918 Total Income 1,689 1,596 1,565 6,
Slide 64: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars March 31, 2021 Dec 31, 2020 March 31, 2020 Liabilities Capital 598 598 509 Reserves and Surplus 12,068 11,990 10,056 Deposits 73,055 67,105 57,812 Borrowings 11,226 12,070 17,007 Other Liabilities 3,672 4,642 3,600 Total 100,619 96,405 88,984 Assets G
Slide 65: Our Recent History
Our Recent History FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Particulars Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 Advances (Net) 1,905 4,132 6,376 9,835 14,450
Slide 66: 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/ 66