Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY22 Earnings Presentation
62 slides from Rbl Bank's earnings presentation, Jan 27, 2022
Slide 1: Investor Presentation Q3 FY22
Investor Presentation Q3 FY 22 January 27, 2022
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 and Retail Update 33 Credit Card Update 39 Payments Business Update 49 Annexures 53 4
Slide 5: Key Performance Highlights
Key Performance Highlights
Slide 6: Q3 FY22 Financial Highlights
Q3 FY22 Financial Highlights QoQ Revenue growth of 8% aided by NII growth of 10% Net Profit at Rs. 156 crore for Q3 FY22 vs Rs. 31 crore for Q2FY22 NIM at 4.3%, up 28 bps QoQ Wholesale Advances Grew 16% YoY; Retail : Wholesale mix at 53:47 Deposit growth of 10% YoY to Rs. 73,639 crore; Average LCR a
Slide 7: Q3 FY22 Highlights Contd....
Q3 FY22 Highlights Contd…. Strong Revenue Growth Deposits Stable Healthy Capitalisation and Liquidity Levels ▪ Total Revenue grew 10% YoY to ▪ Total Deposits grew 10% YoY ▪ CRAR improved 30bps QoQ, at 1630 crore ▪ CASA grew 21% YoY 16.6% and CET 1 to 15.8% ▪ Core Fee Income grew 24% YoY ▪ CASA ratio
Slide 8: Q3 FY22 Highlights
Q3 FY22 Highlights YoY Growth Net interest Income Rs. 1,010cr 11% Core Fee Income Rs. 594cr 24% Net Total Income Rs. 1,630cr 10% Operating Profit Rs. 631cr (21%) Net Profit / (Loss) Rs. 156cr 6% 8
Slide 9: Q3 FY22 Highlights Contd....
Q3 FY22 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 58,141cr 3% 4% Wholesale Rs. 27,241cr 16% 8% Advances Retail Rs. 30,900cr (6%) 0% Advances Deposits Rs. 73,639cr 10% (3%) CASA Rs. 25,318cr 21% (5%) 9
Slide 10: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 46.9% 14.7% 53.1% 19.7% Wholesale Retail 65.6% Retail Advances Breakup (%) 4.4% 3.9% 5.3% 28.1% 15.6% Term Deposits Saving Deposits Current Deposits 42.7% Business Loans Credit Cards Microbanking Housing Loans Agri Others
Slide 11: Financial Performance
Financial Performance
Slide 12: Total Income and NIMs Improve QoQ
Total Income and NIMs Improve QoQ Parameter Q3 FY22 Q2 FY22 QoQ Q3 FY21 YoY 9M FY22 9M FY21 Net Interest Income 1,010 915 10% 908 11% 2,895 2,882 Other Income 620 593 5% 576 8% 1,866 1,335 Net Total Income 1,630 1,508 8% 1,484 10% 4,761 4,217 Operating Profit 631 691 (9%) 801 (21%) 2,088 2,180 Provi
Slide 13: Balance Sheet Parameters
Balance Sheet Parameters Parameter Dec 31,2021 Dec 31,2020 YoY Advances 58,141 56,444 3% Deposits 73,639 67,184 10% Investments 22,983 24,939 (8%) Parameter Dec 31,2021 Sep 30,2021 Dec 31,2020 CASA 34.4% 35.4% 31.1% GNPA 4.84% 5.40% 1.84% NNPA 1.85% 2.14% 0.71% PCR (incl. Technical Write-offs) 78.6%
Slide 14: Core Fee Income Trending Up QoQ
Core Fee Income Trending Up QoQ Other Income Core Fee Income Breakup 576 593 620 1,335 1,866 481 506 594 1,059 1,595 4% 15% 21% 4% 5% 4% 15% 17% 65% 4% 85% 4% 66% 62% 65% 79% 83% 85% 96% 2% 85% 69% 2% 12% 2% 2% 2% 11% 12% 12% 8% 10% 8% 8% 8% 8% 9% 9% 10% 9% 7% Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22
Slide 15: Operating Costs Increase QoQ Driven By Business Volume Growth
Operating Costs Increase QoQ Driven By Business Volume Growth Operating Expenses 2,674 2,037 1,000 57% 817 50% 683 59% 4% 54% 6% 52% 12% 13% 5% 4% 6% 11% 12% 12% 31% 27% 31% 29% 25% Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 15
Slide 16: Credit Costs Lower QoQ as Slippages on Downward Trend
Credit Costs Lower QoQ as Slippages on Downward Trend Net Credit Cost by Business (bps) 112* 118* 73* 297* 444* 105 429 68 60 52 173 124 13 5 14 Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 • Not Annualized for the bank or at individual segment level for the quarter 16
Slide 17: Advances Mix; Wholesale Drives YoY Growth
Advances Mix; Wholesale Drives YoY Growth Yield Dec 31,2021 Dec 31,2020 YoY Proportion 9M FY22 C&IB 20,901 17,812 17% 6.5% CB 6,340 5,694 11% (7.9%) 47% Wholesale 27,241 23,506 16% Business Loans 8,676 10,852 (20%) Credit Cards 13,189 12,172 8% Micro-Banking 4,827 6,725 (28%) 14.9% Housing Loans 1,6
Slide 18: Borrowers' External Rating Profile
Borrowers’ External Rating Profile* – Consistently Moving Up the Risk Curve Dec 31, 2020 Sep 30, 2021 Dec 31, 2021 52,024 54,802 58,734 8,755 16.8% 11,186 20.4% 14,754 25.1% 15,228 29.3% A- or A- or A- or 16,404 16,003 better 29.9% better 27.2% better 75.2% 78.3% 80.3% 15,138 29.1% 15,344 16,435 28.
Slide 19: Diversified Industry Mix – Continued Low Industry Concentration
Diversified Industry Mix – Continued Low Industry Concentration Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure NBFC (ex. HFC & DFI) 4,575 100:0 6.1% Power 3,254 47:53 4.3% Construction 2,574 32:68 3.4% Retail/ Distribution 2,488 66:34 3.3% HFC 2,3
Slide 20: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Dec 31, 2021 Sep 30, 2021 June 30, 2021 March 31, Dec 31, 2020 2021 (Proforma) Movement of Gross NPAs Opening Balance 3,131 2,911 2,602 2,610 2,001 (+) Additions during the period 766 1,217 1,342 1,439 1,470 (-) Upgrade 181 180 157 322 5 (-) Recoveries 271 290 11
Slide 21: Asset Quality – NPA Position Improves QoQ
Asset Quality –NPA Position Improves QoQ Gross NPA by business segment Business segment Dec 31, 2021 Sep 30, 2021 June 30, 2021 Mar 31, 2021 Dec 31, 2020 (Proforma) Wholesale 1,010 1,085 1,070 1,109 1,000 Retail 1,892 2,046 1,841 1,493 1,610 Business Loans 353 363 472 285 516 Credit Cards 388 574 52
Slide 22: Restructured Loans & Loan Related Provisions
Restructured Loans & Loan Related Provisions on 31st Dec 2021 Restructured Loans by business segment Business segment Gross Net Wholesale 391 325 Retail 1,607 1,421 Business Loans 1,185 1,062 Credit Cards 91 81 Micro-Banking 332 278 Total 1,998 1,746 • Specific provision of Rs. 1,826 crore (towards
Slide 23: Capital Adequacy – Well Capitalized
Capital Adequacy –Well Capitalized Particulars Dec 31, 2021 Dec 31, 2020 Sep 30, 2021 Tier 1 Capital Funds* 12,060 12,266 11,895 Tier 2 Capital Funds 623 611 610 Total Capital Funds* 12,683 12,877 12,504 Total RWA 76,510 71,818 76,564 Tier 1 CRAR* 15.8% 17.1% 15.5% Total CRAR* 16.6% 17.9% 16.3% RWA/
Slide 24: CASA & Total Deposits - Healthy Growth YoY
CASA & Total Deposits - Healthy Growth YoY 21% YoY growth in CASA ; Total deposits grew by 10% YoY CASA : 31.1% CASA : 35.4% CASA : 34.4% CASA : 20,867 CASA : 26,734 CASA : 25,318 67,184 75,588 73,639 12.7% 14.7% 12.9% 22.6% 18.1% 19.7% 68.9% 64.6% 65.6% Dec 31, 2020 Sep 30, 2021 Dec 31, 2021 Term D
Slide 25: Deposits, Liquidity and Cost Trends
Deposits, Liquidity and Cost Trends Declining Cost of Funds and Cost of Deposits Surplus Liquidity Position 6.27% 164% 171% 164% 154% 155% 6.02% 5.76% 5.54% 134% 146% 5.27% 5.10% 4.82% 6.27% 5.98% 5.71% 5.45% 5.20% 5.01% 4.76% 80% 80% 90% 90% 100% 100% 100% June 30, Sep 30, Dec 31, March June 30, Se
Slide 26: Borrowing Lower QoQ
Borrowing Lower QoQ Borrowing Breakup 12,070 12,939 11,974 6% 6% 6% 21% 43% 30% 49% 51% 44% 45% December 31,2020 Sep 30, 2021 December 31,2021 Refinance FCY CBLO/ TREPS LAF Tier II 26
Slide 27: Investment Book Higher QoQ
Investment Book Higher QoQ Investment Breakup 24,939 21,773 22,983 1% 7% 3% 8% 3% 8% 12% 4% 3% 84% 82% 85% December 31, 2020 Sep 30, 2021 December 31, 2021 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield (incl. RIDF) Yield Q3 FY22 Q2 FY22 Q3 FY21 9M FY22 9M FY21 Total Investments 5.3
Slide 28: Cost of Deposits/ Cost of Funds Trending Lower QoQ
Cost of Deposits/ Cost of Funds Trending Lower QoQ Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Yield on Advances 12.0% 12.1% 12.3% 12.5% 13.0% 12.3% 11.5% 11.2% 11.6% 11.3% 11.3% Cost of Funds 7.0% 6.9% 6.8% 6.5% 6.3% 6.0% 5.8% 5.5% 5.3% 5.1% 4.8% Cost of Deposits 7.0% 6.9% 6.7
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 10.66 8.44 8.76 9.08 9.63 9.83 9.97 GIFT 48 2 city 12 New Delhi June 30, Sep 30, Dec 31, March June 30, Sep 30, Dec 31, branch 2020 2020 2020 31, 2021 2021 2021 2021 13 19 Channel Breakup 12 1 5 Channels Number of
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 1.3 2.5 5.4 Basel III compliant Tier II ICRA AA- hyb (Stable) bonds (Re-affirmed dated Feb 22, 2021) 28.8 CARE AA- (Stable) 28.9 (Re-affirmed dated Oct 6, 2021) Certificate of Deposits ICRA A1+ 13
Slide 33: Micro-Banking and Retail Update
Micro-Banking and Retail Update
Slide 34: Micro-Banking Distribution Network
Micro-Banking Distribution Network BC Branches Opened in Q3-FY-22 : 16 (1) State & District Presence: (2) (50) • 21 States and 2 Union Territory 6 (43) • New Union Territory Added: Jammu &Kashmir (85) 103 • 411 Districts (61) (32) (120) (2) Branches : 57 (53) 99 16 (46) (47) (79) • Micro-Banking Bra
Slide 35: Micro-Banking - Portfolio Concentration
Micro-Banking - Portfolio Concentration Top-3 & Top-5 Portfolio Contribution State Name % of % of % of % of 56% 57% Portfolio Portfolio Portfolio Portfolio 53% Dec’21 Mar’21 Dec’20 Mar’20 39% 36% 40% Bihar 15.7% 12.8% 12.6% 14.7% Rajasthan 13.0% 10.9% 8.5% 7.3% Tamil Nadu 11.2% 13.0% 13.6% 13.4% Dec
Slide 36: Portfolio declines on account of curtailed disbursals, low ticket size
Portfolio declines on account of curtailed disbursals, low ticket size 3.05 Mn active loan accounts In Rs. crores Gross Advances Portfolio Composition 36% 6,749 5,541 5,497 64% Dec 31,2019 Dec 31,2020 Dec 31,2021 New-Book-Post COVID Old-Book-Pre-COVID Average Ticket Size (ATS) of New Loans Average O
Slide 37: Collection Efficiency
Collection Efficiency Collection Efficiency 97% 97% 97% 94% 90% 91% 82% 83% Mar-21 Jun-21 Sep-21 Dec-21 Collections Efficiency Collection Efficiency- Non- NPA Book Collection Efficiency - Non-NPA Book 100% 96% 98% 99% 91% 90% 93% 78% March'21 June'21 Sept'21 Dec'21 New Portfolio Old Portfolio New-Po
Slide 38: Collection Efficiency – Retail Loans
Collection Efficiency – Retail Loans 99.3% 99.3% 99.5% 99.5% 99.1% 99.2% 98.6% 98.6% 97.3% 97.1% 95.8% 93.7% 89.2% 88.4% Current bucket (0 dpd) Portfolio (< 90 dpd) Pre-covid (Feb-20) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Collection efficiency in Retail Loans on the current bucket (0dpd) continu
Slide 39: Credit Card Update
Credit Card Update
Slide 40: Growth & Market Share
Growth & Market Share Nov’20 Nov’21 RBL Industry RBL Industry 3.4 M 67.6 M CIF 2.9 M 60.1 M 17% 12% 3,863 Cr 89,493 Cr Spends 2,828 Cr 62,581 Cr 37% 43% 13,504 Cr 1,22,111 Cr Advances 12,360 Cr 1,14,307 Cr 9% 7% Market Share – Cards (#) Market Share - Spends Market Share - Advances 5.1% 4.8% 4.8% 4.
Slide 41: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 3.39 3.46 3.25 0.60 3.08 3.10 2.96 2.82 0.38 0.36 0.29 0.24 0.24 0.18 0.18 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Oct'21 Nov'21 Dec'21 Q3'21 Q4'21 Q1'22 Q2'22 Oct'21 Nov'21 Dec'21 Gross Advances Breakup (Cr.) Total Spends (Cr.) 12
Slide 42: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Consumer Loans ('000) Retail Spend 1,042 960 876 855 26,008 24,963 22,684 23,611 23,557 757 21,173 21,232 11,455 12,663 11,809 10,403 10,984 11,308 9,620 323 281 251 Q3'21 Q4'21 Q1'22 Q2'22 Oct'21 Nov'21 Dec'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Oct'21 Nov'21 Dec'21 Retail
Slide 43: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix 100% 100% 90% 17% 18% 19% 20% 21% 23% 30% 29% 29% 29% 29% 29% 31% 26% 80% 80% 12% 12% 12% 12% 12% 70% 12% 11% 60% 60% 50% 40% 40% 70% 71% 71% 71% 71% 71% 69% 71% 70% 69% 68% 67% 66% 63% 30% 20% 20% 10% 0% 0% Jun
Slide 44: Spend Recovery
Spend Recovery Spend Impact and Recovery *Spends by category Spend Spends per 121% 121% Card 112% Spend Type Mar’21 Jun’21 Sept’21 Dec’21 Indexed 100% (Dec’21 vs Mar’21) Daily 76% 80% 79% 79% 1.08 Ecom 53% 57% 60% 64% 1.29 Mar'21 Oct'21 Nov'21 Dec'21 POS 47% 43% 40% 36% 0.83 Discretionary 20% 16% 16
Slide 45: Credit Cards – tighter control on new bookings
Credit Cards – tighter control on new bookings resulting in early vintage delinquencies in line with industry. 18.0% Refer note below 16.0% 6MOB$30+ Comparison with Industry 14.0% 12.0% INDUSTRY RBL 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Refer note below 12.0% 3MOB$30+ Comparison with Industry 7.0% INDUSTRY
Slide 46: Collection Efficiency
Collection Efficiency Resolution Rate Bucket-0 Resolution Rate Bucket-1 100% 100%101% 100% 100%101%101%101%101%101%101% 100% 96% 100% 95% 98% 101%105%102%100% 99% 103% 98% 97% 94% 73% 64% 55% 46% 85% Resolution Rate Bucket-2 Resolution Rate Bucket-3 144%144% 138%142%132%134% 137% 131% 125% 125%127%
Slide 47: Tighter risk measures on new acquisition
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* 80% 3.00 Pre-Covid 70% 2.50 2.03 60% Post-Covid 1.92 1.81 2.00 1.66 50% 1.50 1.51 1.50 1.37 40% 1.50 1.32 0.92 0.90 0.89 30% 1.0
Slide 48: 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 Pre-Covid 99,475 110,000 77,394 100,000 61,411 90,000 45,846 45,042 80,000 42,576 70,000 60,000 Jul-Sep'20 Oct-Dec'20 Jan-Mar'21 Apr-Jun'2
Slide 49: Payments Business Update
Payments Business Update
Slide 50: Deeper Connect by enhancing the value proposition in payments
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 Issuance, Interbank tieups for Acquiring Nostro settlements services 2 Payment and Cash wi
Slide 51: Our Continual market standing in the digital space
Our Continual market standing in the digital space… QOQ Increase in Acquiring QOQ Increase in Acquiring QOQ Increase in API Txn Volume ~ 12% Onboarding ~ 14% volume ~ 17% For period Oct 21 to Dec 21 67 L 8.5 CR Overall BAAS Total Transaction Reach/Touchpoints* Volume (in nos.) * Overall number of Pa
Slide 52: Deepening our digital footprint
Deepening our digital footprint… Acquiring & Issuance Products INR Remittances FX Products API, UPI & Others Aggregation • Commenced • 3.3% growth in value • ~25% market share of • Increase in Indo • Simplified Merchant development and QOQ disbursements Nepal Volumes by Onboarding Process testing a
Slide 53: Annexures
Annexures
Slide 54: Board of Directors
Board of Directors Mr. Rajeev Ahuja Mr. Prakash Chandra Managing Director and CEO (Interim) Non – Executive Independent Director (Part Time Chairman) Previously, associated with Citibank India, Bank of America, India Previously, Chairman of Central Board of Direct Taxes (CBDT) and Bankers Trust Comp
Slide 55: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Rajeev Ahuja Mr. Vishwavir Ahuja Managing Director and CEO (Interim) On leave Previously, associated with Citibank India, Bank of America, India Managing Director & Country Executive Officer of Bank of America and Bankers Trust Company (35) for Indian
Slide 56: 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) (21) Mr. San
Slide 57: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY22 Q3 FY21 Q2 FY22 9M FY22 9M FY21 Income Interest Earned 2,044 2,008 1,975 6,045 6,364 Interest Expended 1,034 1,099 1,059 3,149 3,482 Net Interest Income 1,010 908 915 2,895 2,882 Other Income 620 576 593 1,866 1,335 Total Income 1,630 1,484 1,508 4,761 4,2
Slide 58: Balance Sheet Statement
Balance Sheet Statement Particulars Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Liabilities Capital 599 599 598 Reserves and Surplus 11,814 11,653 11,986 Deposits 73,639 75,588 67,184 Borrowings 11,974 12,939 12,070 Other Liabilities 3,877 3,695 4,600 Total 101,903 104,474 96,437 Assets Cash & Balances w
Slide 59: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3 FY22 Q3 FY21 Q2 FY22 9M FY22 9M FY21 Income Interest Earned 2,107 2,089 2,034 6,244 6,618 Interest Expended 1,034 1,099 1,059 3,149 3,481 Net Interest Income 1,073 990 975 3,096 3,138 Other Income 621 571 595 1,876 1,324 Total Income 1,693 1,561 1,
Slide 60: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Liabilities Capital 599 599 598 Reserves and Surplus 11,759 11,633 11,990 Deposits 73,637 75,560 67,105 Borrowings 11,975 12,940 12,070 Other Liabilities 3,899 3,713 4,642 Total 101,870 104,444 96,404 Assets Good
Slide 61: 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 Q3 Particulars FY22 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 11,792 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 73,639 Advances (Net) 1,905 4,
Slide 62: 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/ 62