Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q2 FY25 Earnings Presentation
65 slides from Rbl Bank's earnings presentation, Oct 19, 2024
Slide 1: Exchange filing cover letter
October 19, 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 provision
Slide 2: Investor Presentation Q2 FY25
Investor Presentation Q2 FY 25 October 19, 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: Financial Results
Financial Results
Slide 6: Highlights for the H1/Q2 FY25
Highlights for the H1/ Q2 FY25 Improving operating • Net Interest Income (NII) for H1 FY25 grew 14% YoY to Rs.3,315 crore, NIM was 5.35%; NII for Q2 FY25 performance.. grew 9% YoY to Rs. 1,615 crore, NIM was 5.04% • Other Income for H1 FY25 grew 25% YoY to Rs. 1,733 crore; For Q2 FY25 it grew 32% Yo
Slide 7: Key Parameters
Key Parameters Deposits up 20% YoY to Advances up 15% YoY to 16.06 mn customers Scale Rs. 107,959 crore Rs. 87,882 crore across segments Retail Assets up 24% YoY; Granular Deposits up 22% ~ 1.6 lakh net customers Growth Drivers Comm. Banking up 17% YoY YoY added in the quarter 15.9% CRAR Avg. LCR fo
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 FY 24 Q1 FY 25 Q2 FY 25 YoY Growth QoQ Growth Remarks NII 1,475 1,700 1,615 9% -5% NII Excl One off of Income Tax Interest in NII impacted by interest reversals from slippages 1,475 1,631 1,615 9% -1% Q1FY25 and lower disbursals in microfinance Yields lower QoQ
Slide 9: Consistently delivering robust growth
Consistently delivering robust growth… Advances Deposits Profitability 1.14% 76,324 79,949 83,987 86,704 87,882 89,780 92,746 103,494 101,352 107,959 1.08% 1.00% 44,092 46,371 49,147 53,737 54,723 67,045 57,692 61,407 68,349 71,735 372 0.75% 353 18,056 19,661 294 0.64% 32,233 33,577 34,840 32,968 33
Slide 10: Key Ratios
Key Ratios Parameter Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Yield on Advances 12.2% 12.8% 13.5% 13.9% 14.0% 14.0% 14.1% 14.2% 13.5% Cost of Deposits 5.1% 5.5% 5.7% 6.1% 6.2% 6.3% 6.4% 6.5% 6.5% Cost of Funds 5.2% 5.6% 5.8% 6.1% 6.3% 6.5% 6.5% 6.6% 6.6% Net Interest Margin 5.02% 5.27%
Slide 11: Deposits growth led by granular deposits
Deposits growth led by granular deposits Total deposits grew by 20% YoY; CASA Ratio at 33.6% Sep 23 June 24 Sep 24 89,780 101,352 107,959 64% 67% 66% 19% 18% 18% 17% 15% 15% TD SA CA TD SA CA TD SA CA CASA Ratios Deposits < Rs. 3 crore LCR Position 35.7% 33.8% 35.2% 142% 32.6% 33.6% 49.3% 140% 47.8%
Slide 12: 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 Sep 2024 Sep 2023 YoY June 2024 QoQ Corporate Net Funded Advances 23,395 23,888 (2%) 23,578 (1%) B
Slide 13: Strong Core Fee Growth
Strong Core Fee Growth Other Income Core Fee Income Breakup 704 805 927 1,390 1,733 678 769 822 1,318 1,591 4% 4% 4% 22% 29% 4% 26% 4% 22% 6% 22% 7% 6% 96% 95% 89% 6% 5% 29% 19% 95% 92% 24% 27% 29% 30% 30% 31% 30% 31% 5% 8% 10% 11% 11% 10% 11% 4% 5% 11% Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2 FY2
Slide 14: Stable Operating Expenses QoQ
Stable Operating Expenses QoQ 1,448 1,646 1,632 2,909 3,279 13% 10% 13% 14% 6% 12% 14% 8% 14% 8% 12% 15% 7% 5% 34% 8% 34% 31% 37% 34% 3% 4% 5% 3% 5% 3% 3% 5% 6% 5% 25% 25% 26% 29% 22% Q2 FY24 Q1 FY25 Q2 FY25 H1 FY 24 H1 FY 25 Employee Premises Depreciation Business Acquisition & Collections Payments
Slide 15: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Sep 2023 Dec 2023 Mar 2024 June 2024 Sep 2024 Opening Balance 2,404 2,441 2,551 2,271 2,378 (+) Additions during the period 541 666 680 720 1,026 (-) Upgrade 53 100 91 66 101 (-) Recoveries 113 100 148 126 108 (-) Write Offs 339 356 721 420 613 Closing Balance 2,
Slide 16: Asset Quality Trend
Asset Quality Trend NPA Position PCR 3.12% 3.12% 88.4% 89.3% 89.8% 90.0% 89.4% 2.88% 2.65% 2.69% 75.6% 75.1% 72.7% 73.1% 73.0% 0.78% 0.80% 0.74% 0.74% 0.79% 0.89% 0.63% 0.51% 0.44% 0.38% Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 PCR PCR incl. Twoff GNP
Slide 17: Credit Costs Trend
Credit Costs Trend Net Credit Cost by Business (bps)* 90 59 80 129 140 145 83 61 91 50 37 37 4 1 (5) 0 (2) 0 (3) (0) Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 • Not Annualized for the bank or at individual segment level for the quarter 16
Slide 18: Adequately Capitalised for Growth
Adequately Capitalised for Growth Total RWA 80,187 83,353 85,138 88,048 89,482 94,640 98,630 105,007 104,126 17.37% 16.99% 16.92% 17.07% 16.68% 16.42% 16.18% 15.92% 15.56% Q3FY24 saw the 15.85% 15.49% impact of the 15.25% 15.05% 15.15% regulatory direction 14.58% 14.38% 14.19% 13.85% of the RBI in N
Slide 19: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings 1.7 Instrument Rating ICRA AA- (Stable) 12.6 (Re-affirmed dated Aug 13, 2024) Basel III compliant Tier II bonds 36.6 CARE AA- (Stable) (Re-affirmed dated Sept 30, 14.6 2024) ICRA A1+ (Re-affirmed dated Aug 13, 2024
Slide 20: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Customers (Mn.) Locations Chandigarh 4 15.90 16.06 14.97 15.57 14.31 GIFT 58 2 city 14 New Delhi branch 1 19 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 24 Channel Breakup 15 1 6 Channels Number of transaction points 33 19 1 Sep 2023 June 2024 Sep 202
Slide 21: Our Aspirations For FY26
Our Aspirations For FY26
Slide 22: Our Progress towards Aspirations For FY26
Our Progress towards Aspirations For FY 26 Key Financial Targets (FY 24 – FY 26) Actuals (H1 FY 25) Advances Deposits Advances Deposits 20%+ CAGR 20%+ CAGR 15% YoY 20% YoY Average CASA Average CASA Granular Deposits Granular Deposits Growth Growth 50%+ 1-2% p.a. 1-2% p.a. 22% (2%) YoY Share of New S
Slide 23: PBT RoA Breakup – Near Term Provision impact in Unsecured Retail
PBT RoA Breakup – Near Term Provision impact in Unsecured Retail Wholesale Business Unsecured Retail Secured Retail Business Steady business performance Impacted by near term stress Nearing breakeven led by led by revenue diversification improving business mix and 5.8% 5.7% scale 4.0% 3.2% 3.1% 2.2%
Slide 24: Business Segment Update
Business Segment Update
Slide 25: Wholesale Segment Update
Wholesale Segment Update
Slide 26: Our Wholesale Segment landscape
Our Wholesale Segment landscape (Sep 2024) Segment Commercial and Supply Client Corporates Financial Institutions Other niche segments Chain Contribution Advances 44% 29% 16% 11% Co- Tech & Institutional Real Estate & Gems & New Transaction MNCs operative Digital Finance Infrastructure Jewellery Eco
Slide 27: Wholesale franchise built on a grounds-up scalable model
Wholesale franchise built on a grounds-up scalable model Growth Drivers Business readiness Commercial; Banking growing at Client centric coverage - Broad-based Niche segments adding ~20% YoY; building competitive Strategically segmented Solutioning – disproportionate advantage in specific clusters i
Slide 28: Safeguarding growth through proactive risk management
Safeguarding growth through proactive risk management Implementation of robust Early Warning A B Strengthen Credit Quality assurance through Signals (EWS) framework; Systems for dedicated stress identification team and tools taking timely remedial action Monitoring Stress identification Tighter poli
Slide 29: Improving Share of Commercial Banking; Liability Generation Through Cross Sell
Improving Share of Commercial Banking; Liability Generation Through Cross Sell Net Wholesale Advances Self-funded Wholesale advances (gross) 36,000 150% 34,000 140% 122% 130% 34,840 32,000 118% 115% 109% 120% 33,160 30,000 110% 32,431 101% 31,808 28,000 100% 89% 28,693 26,000 90% 9,115 27,457 80% 7,
Slide 30: Diversified Income Pools Through Deepening Client Relationships
Diversified Income Pools Through Deepening Client Relationships With Better Rated Corporate Groups Reducing Dependence on Asset Led Revenues Recoveries and Low Slippages resulting in low credit costs 1,908 45% 37% 37% 40% 36% 37% 41% 1,182 14% 22% 37% 40% 38% 588 40% 37% 337 93 122 111 41% 41% (61)
Slide 31: Retail Asset Segment Update
Retail Asset Segment Update
Slide 32: Retail Advances growth of 24% YoY
Retail Advances growth of 24% YoY 44,092 46,371 49,147 53,737 54,723 6,353 12% 6,605 2,347 1,417 3% 1,721 1,458 2,279 2,920 2,159 4% 2,221 2,683 6% 1,631 1,360 3% 1,997 7,447 14% 6,260 6,696 1,442 3% 4,779 11% 5,915 8,161 8,182 8,837 16% 8,375 7,570 19% 7,511 7,253 6,971 13% 6,827 6,785 15% 3,888 3,
Slide 33: Retail Disbursement (Excl. Cards)
Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets 5,002 5,958 6,163 4,152 4,248 548 829 939 429 765 9% 326 714 412 143 3% 14% 101 269 1,087 746 18% 5% 882 772 1,316 318 7% 15% 440 968 834 17% 719 1,224 29% 647 526 732 17% 2,295 1,985 40% 1,989 1,483 26% 1,085 Q2 FY24 Q
Slide 34: Secured Retail – Improving share of better yielding advances
Secured Retail – Improving share of better yielding advances; Stable Credit Cost Secured Retail Organic Disbursement Breakup 2,256 1,694 2,009 2,232 1,805 1,604 14 58 11.7% 21 1 18.8% 11 9.4% 1 92 135 374 21 402 16.8% 8 35 2 3 12.6% 444 14.8% 7 25 6 72 Affordable 71 7.3% 276 518 Affordable 15.5% seg
Slide 35: Credit Card Update
Credit Card Update
Slide 36: Diversifying Sourcing Mix; Near Term Stress Owing to Collection Transition
Diversifying Sourcing Mix; Near Term Stress Owing to Collection Transition Increasing share of Direct Sourcing Quality sourcing consistently 0.2% 0.2% 0.1% 0.1% 0.2% 0.2% 7.6% 10.7% 11.8% 5.5% 5.6% 5.4% 5.5% 5.5% 5.0% 15.4% 27.0% 19.9% 33.4% 23.9% 20.8% 22.9% 24.4% 25.5% 94.3% 94.2% 94.4% 94.4% 94.3
Slide 37: Business Volumes Q2
Growth & Market Share Source RBI Data Aug’23 Aug’24 RBL Industry RBL Industry 5.26 M 105.49 M CIF 4.71 M 91.27 M 12% 16% 7,332 Cr 1,68,635 Cr Spends* 6,360 Cr 1,48,985 Cr 15% 13% 17,672Cr# 2,76,576 Cr Advances 14,776Cr 2,30,657 Cr 20% 20% Volumes Q2 ₹ 17,811 Cr Business 3.6 lacs 52.2 lacs ₹ 21,887 C
Slide 38: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.63 0.59 0.57 5.26 5.22 0.48 5.19 5.04 0.39 0.37 4.81 4.61 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Gross Advances Breakup (Cr.) Total Spends (Cr.) 21,160 21,976 21,
Slide 39: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend# Consumer Loans 30,959 32,591 Count ('000) 30,431 29,890 27,690 28,043 47 55 43 46 57 49 14,417 15,077 13,520 12,575 12,754 13,287 983 1057 1025 1039 1032 905 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Retail Spend/Card Retail Spend/Active Card Q1 FY
Slide 40: 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 0.005 6.88 0.81 1.18 1.03 on 30th Sep 2024 1.03 13% 6% 11% 21% 1.12 32% 33% 23% 21% 68% 0.01 58% 9% 0.99 66% 1.03 39% 0.99 0.03 0.96 Under 30 31-45 45+ LT680 681-730 731
Slide 41: RBL Bank Business Segments and Credit Cards
RBL Bank Business Segments and Credit Cards Millennial Mass Affluent Co-Branded Affluent Products Products Products Products Cookies Platinum Maxima Plus PaisaBazaar Duet PaisaBazaar Duet+ BankBazaar Save Max BankBazaar Save Max Insignia Monthly Fee: INR 100 Annual Fee: INR 2,500 Annual Fee: LTF Ann
Slide 42: Co-Brand Partnership Update
Co- Brand Partnership Update Fintech Consumer NBFC Live for sourcing Co-Brand agreement executed; expected launch in coming months 41
Slide 43: Commercial Card Program Launch Update
Commercial Card Program Launch Update Key Highlights of the Launch Initial Pilot has shown strong engagement traction Pilot launch has provided following evidence: • Bank launched the program in Q4FY24, initially • Higher engagement as a value-added service targeting existing wholesale relationships
Slide 44: Microfinance Update
Microfinance Update
Slide 45: Microfinance Distribution Network
Microfinance Distribution Network (2) (31) (6) 22 413 1,10,000 + (45) States and 1 UT Districts Villages (131) (25) (112) (213) (2) (53) (88) (37) (77) (16) (19) (103) Micro-Banking Branches Network 1332 (77) (11) RBL 1024 814 210 Finserve Chhattisgarh (5) (22) (110) (2) Other BCs 221 87 308 (140) (
Slide 46: Portfolio Update
Portfolio Update AUM* (Cr.) Disbursements (Cr.) 8,269 8,811 9,511 9,253 8,471 1,985 1,989 2,295 1,483 1,085 12% 12% 12% 12% 12% 14% 13% 12% 9% 11% 88% 88% 88% 88% 88% 86% 87% 88% 91% 89% Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q2_FY25 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q2_FY25 RFL Other BCs RFL Other BCs *Incl
Slide 47: Microfinance Productivity
Microfinance Productivity Quarterly Disbursement/Branch (Cr.) AUM/Branch (Cr.) 1.81 7.58 1.65 1.64 7.49 7.32 1.18 6.90 0.82 6.56 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q2_FY25 Q2_FY24 Q3_FY24 Q4_FY24 Q1_FY25 Q2_FY25 Borrower/Branch Borrower (Lakh) 2898 34.62 36.55 36.83 29.77 32.00 2722 2765 2482 2468 Q2_F
Slide 48: Portfolio Concentration and PAR Bucket
Portfolio Concentration and PAR Bucket Portfolio Contribution % PAR Buckets % 2.27% 68.89% 2.05% 60.73% 59.36% 52.55% 1.57% 40.70% 40.49% 0.82% 0.80% 0.72% 0.67% 0.63% 0.74% RBL Peer Group INDUSTRY SMA0 SMA1 SMA2 TOP 3 State TOP 5 State RBL Peer Group Industry Source for Peer Group & Industry : Equi
Slide 49: Current Bucket Collection Efficiency & SMA Trend
Current Bucket Collection Efficiency & SMA Trend MoM Collection Efficiency 99.28% 99.64% 99.91% 99.64% 99.69% 99.19% 98.73% 97.40% 97.51% Jan24 Feb24 Mar24 Apr24 May24 Jun24 Jul24 Aug24 Sep24 Collection efficiency is collection in the current bucket as a percentage of current month demand • States s
Slide 50: Digital Banking Update
Digital Banking Update
Slide 51: 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 ~8 Cr+ Leverage our strong API Multi-pronged delivery leveraging 27 L+ capabilities our partnership base Volume p.m on payment channels Live • P
Slide 52: Curated & Expansive Digital Interface
Curated & Expansive Digital Interface Retail Internet Banking Corporate & MSME Banking Revamped, Simplified and Futuristic Revamped, Simplified and Futuristic Net Banking Service Online & Mobility Service Partnership Banking Digital Onboarding, Account management RBL Buddy Your friend on and value a
Slide 53: Continuous enhancements across digital channels
Continuous enhancements across digital channels… ✓ ✓ ✓ Forex deals ✓ Convert credit card Internet banking 225+ services integration for tax booking on transactions into across channels payments (Direct Corporate Internet EMI now on tax, Custom duty) Banking WhatsApp channel ✓ ✓ ✓ ✓ Dual User ✓ 80% c
Slide 54: ESG Update
ESG Update
Slide 55: 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 56: Annexures
Annexures
Slide 57: Experienced Board of Directors
Experienced Board of Directors Mr. R Subramaniakumar Mr. Chandan Sinha Managing Director and CEO Non-Executive Independent Director (Part Time Chairman) A veteran banker with 40 years of experience; Previously, Previously, Executive Director, RBI. Career – Central Banker for 35 associated with PNB,
Slide 58: Leadership – Core Management Team
Leadership – Core Management 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 Overseas Bank
Slide 59: Leadership – Core Management Team (Contd.)
Leadership – Core Management 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. Ravi Pichan Mr. Alok Rastogi Chief
Slide 60: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 FY25 Q2 FY24 Q1 FY25 H1 FY 25 H1 FY 24 Income Interest Earned 3,531 3,008 3,496 7,027 5,864 Interest Expended 1,916 1,533 1,796 3,712 2,967 Net Interest Income 1,615 1,475 1,700 3,315 2,897 Other Income 927 704 805 1,733 1,390 Total Income 2,542 2,179 2,505 504
Slide 61: Balance Sheet
Balance Sheet Particulars Sep 2024 June 2024 Sep 2023 Liabilities Capital 608 606 601 Reserves and Surplus 14,895 14,673 13,520 Deposits 1,07,959 1,01,352 89,780 Borrowings 14,679 13,577 15,302 Other Liabilities 5,782 5,576 4,941 Total 1,43,885 1,35,784 1,24,144 Assets Cash & Balances with RBI 12,63
Slide 62: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q2 FY25 Q2 FY24 Q1 FY25 H1 FY 25 H1 FY 24 Income Interest Earned 3,531 3,008 3,497 7,028 5,863 Interest Expended 1,916 1,533 1,796 3,712 2,966 Net Interest Income 1,615 1,475 1,701 3,316 2,897 Other Income 928 713 775 1,703 1,407 Total Income 2,543 2,
Slide 63: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Sep 2024 June 2024 Sep 2023 Liabilities Capital 608 606 601 Reserves and Surplus 14,888 14,693 13,538 Deposits 1,07,952 1,01,341 89,730 Borrowings 14,680 13,578 15,302 Other Liabilities 5,776 5,580 4,936 Total 1,43,904 1,35,798 1,24,108 Assets Goodwill on Conso
Slide 64: Historical Performance
Historical Performance Particulars FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Net Worth 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 12,006 12,996 14,206 14,847 Deposits 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,007 84,887 103,494 1,07,959 Advances (Net
Slide 65: Thank you
Thank you apno ka bank | RBL Bank 64