Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q1 FY24 Earnings Presentation
51 slides from Rbl Bank's earnings presentation, Jul 22, 2023
Slide 1: Investor Presentation Q1 FY24
Investor Presentation Q1 FY 24 July 22, 2023 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: Key Drivers of Business Performance in Q1 FY24
Key Drivers of Business Performance in Q1 FY24 Strong Advances Growth - Growth of 21% YoY and 4% sequentially; driven by Retail Advances Growth of 34% YoY and 8% sequentially PAT for Q1 FY24 grew 43% YoY and 6% QoQ to Rs. 288 crore Operating Profit for Q1 FY24 grew 22% YoY and 9% QoQ to Rs. 647 cror
Slide 5: Q1 FY24 Key Financial Highlights
Q1 FY24 Key Financial Highlights Advances Rs. 73,087 crore Retail Advances Rs. Deposits Rs. 85,636 crore CASA Rs. 31,927 crore Healthy 40,866 crore Balance 21% YoY 4% QoQ 34% YoY 8% QoQ 8% YoY 1% QoQ 12% YoY 1% QoQ Sheet NII Rs. 1,246 crore Core Fee Income Rs. 640 Operating Profit Rs. 647 PAT Rs. 28
Slide 6: Improving Profitability QoQ
Improving Profitability QoQ Q1 Q1 Q4 Parameter YoY QoQ FY23 FY22 FY24 FY23 FY23 Net Interest Income 1,246 1,028 21% 1,211 3% 4,451 4,027 Other Income 685 614 12% 674 2% 2,489 2,341 Net Total Income 1,932 1,641 18% 1,885 2% 6,941 6,367 Operating Profit 647 529 22% 594 9% 2,202 2,745 Provisions (Other
Slide 7: Advances and Deposits
Advances and Deposits
Slide 8: Well Diversified Advances
Well Diversified Advances Non Funded Advances Net Funded Advances 15,324 71.0% 73,087 70,209 66,684 62,942 60,270 29.0% Guarantees LCs and Acceptances 32,686 34,977 37,778 30,514 40,866 (15.2%) (15.6%) (15.7%) (16.0%) (15.8%) 34% YoY • 84.4% of Wholesale Exposure is to A- or better rated customers •
Slide 9: Advances Mix; Strong Advances Growth
Advances Mix; Strong Advances Growth Yield Proportio June 2023 June 2022 YoY March 2023 QoQ Q1 FY24 n C&IB 24,719 23,111 7% 24,643 0% 8.6% CB 7,502 6,645 13% 7,788 (4%) (6.5%) 44% Wholesale 32,221 29,756 8% 32,431 (1%) Business Loans 7,532 7,547 0% 6,656 13% Credit Cards 17,665 14,036 26% 16,594 6%
Slide 10: Wholesale Advances
Wholesale Advances Wholesale Exposure - Rating Breakup (%) Wholesale Advances 84.4% 56,860 31,707 32,431 32,221 30,256 A - or Better 29,756 BBB 7,788 7,502 7,493 BB & Below 7,137 13% YoY 6,645 12.8% 2.8% FB+NFB Top 10 Industries FB-NFB Split % of Outstanding Outstanding 24,214 24,643 24,719 7% YoY 2
Slide 11: Retail Advances
Retail Advances 40,866 37,778 34,977 2,017 2.8% 32,686 1,242 1.7% 1,597 1,351 30,514 1,029 1.8% 1,269 1,357 4,541 6.2% 777 905 1,260 540 4,583 1,213 990 423 4,298 1,201 3,450 7,532 10.3% 2,563 6,656 6,882 7,350 7,547 6,517 8.9% 5,963 5,021 4,584 3,753 16,594 17,665 24.2% 14,644 15,471 14,036 June 20
Slide 12: Retail Disbursement excl. Cards
Retail Disbursement excl. Cards 4,688 547 4,093 296 432 11% 315 8% 927 2,542 2,810 698 17% 8 301 444 140 496 12% 292 225 304 454 312 2,474 2,152 53% 636 1,865 7 1,451 142 198 265 23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Microfinance Business Loans Housing Loans Rural Vehicle Finance Others Percent
Slide 13: CASA & Total Deposits
CASA & Total Deposits 12% YoY growth in CASA ; Total deposits grew by 8% YoY June 22 March 23 June 23 79,216 84,887 85,636 20.6% 64.0% 19.9% 62.6% 19.6% 62.7% 15.4% 17.4% 17.7% CA SA TD CA SA TD CA SA TD CASA + TD < 2 crore to Total Deposits 63.2% 62.0% 58.2% June 2022 March 2023 June 2023 13
Slide 14: Deposits, Liquidity and Cost Trends
Deposits, Liquidity and Cost Trends Yield and Cost LCR Position 12.22% 11.96% 12.60% 12.80% 11.22% 11.46% 138% 149% 156% 144% 5.85% 6.15% 126% 129% 4.81% 4.87% 5.19% 5.55% 5.14% 5.47% 5.73% 6.07% 100% 100% 100% 100% 100% 100% 4.75% 4.84% March 2022 June 2022 Sep 2022 Dec 2022 March 2023 June 2023 Ma
Slide 15: Improving Financial Metrics
Improving Financial Metrics
Slide 16: Other Income increasing QoQ
Other Income increasing QoQ Other Income Core Fee Income Breakup 614 674 685 2,341 2,489 531 658 640 2,073 2,323 4% 4% 4% 21% 22% 4% 22% 5% 5% 3% 24% 22% 3% 3% 3% 87% 98% 93% 28% 30% 31% 89% 93% 30% 36% 33% 30% 24% 31% 29% 13 11% 9% 11% 7% 7% 11% 10% 10% 2% Q1 FY23 Q4 FY23 Q1 FY24 FY 22 FY23 Q1 FY23
Slide 17: Operating Costs Stable QoQ
Operating Costs Stable QoQ 1,292 1,284 4,738 1,112 14% 14% 12% 4% 4% 4% 3,622 14% 7% 6% 6% 4% 15% 13% 15% 6% 15% 5% 15% 8% 9% 9% 11% 16% 11% 24% 9% 24% 23% 22% 22% 28% 28% 27% 28% 28% Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Employee Business Acquisition Payments & General Banking Tech & Outsourcing Premis
Slide 18: Asset Quality
Asset Quality
Slide 19: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended June 2022 Sep 2022 Dec 2022 March 2023 June 2023 Movement of Gross NPAs Opening Balance 2,728 2,537 2,457 2,469 2,420 (+) Additions during the period 653 812 608 681 555 (-) Upgrade 192 149 99 138 97 (-) Recoveries 188 164 126 248 169 (-) Write Offs 465 578 371 3
Slide 20: Asset Quality Trends
Asset Quality Trends NPA Position PCR 4.08% 85.3% 84.3% 84.7% 85.0% 85.9% 3.80% 3.61% 3.37% 3.22% 2.35% 72.5% 67.8% 68.0% 68.1% 69.6% 1.87% 1.44% 1.21% 1.05% 1.16% 1.26% 1.18% 1.10% 1.00% June 2022 Sep 2022 Dec 2022 March 2023 June 2023 June 2022 Sep 2022 Dec 2022 March 2023 June 2023 GNPA NNPA Net
Slide 21: Credit Costs at Normalised Level
Credit Costs at Normalised Level Net Credit Cost by Business (bps) 43* 29* 39* 515 149 42 494 40 33 150 1 (1) 21 (1) Q1 FY23 Q4 FY23 Q1 FY24 (4) FY 22 FY 23 • Not Annualized for the bank or at individual segment level for the quarter 21
Slide 22: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 23: Capital Adequacy – Well Capitalized
Capital Adequacy – Well Capitalized Particulars June 2022 March 2023 June 2023 Tier 1 Capital Funds* 12,517 12,984 13,253 Tier 2 Capital Funds 1,180 1,424 1,434 Total Capital Funds* 13,697 14,408 14,687 Total RWA 78,222 85,138 88,048 Tier 1 CRAR* 16.00% 15.25% 15.05% Total CRAR* 17.51% 16.92% 16.68%
Slide 24: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.8 0.0 Basel III compliant Tier II bonds ICRA AA- (Stable) 7.9 (Re-affirmed dated Sep 9, 2022) 33.4 CARE AA- (Stable) (Re-affirmed dated Oct 3, 25.9 2022) Certificate of Deposits ICRA A1+ (Re-aff
Slide 25: Growing Distribution Network
Growing Distribution Network
Slide 26: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 4 11.77 12.00 12.91 13.65 11.15 11.30 GIFT 56 2 city 14 New Delhi branch 1 March 2022 June 2022 Sep 2022 Dec 2022 March 2023 June 2023 17 24 Channel Breakup 15 1 6 Channels Number of transaction points 29 15 June 20
Slide 27: Our Aspirations For FY26
Our Aspirations For FY26
Slide 28: Our Aspirations For FY26
Our Aspirations For FY26 Key Financial Targets (FY24-FY26) Advances Deposits Building on existing “Core” Businesses and building scale in nascent verticals 20%+ CAGR 20%+ CAGR Average CASA Focus on distribution led growth- Focal point of cross sell Granular Deposits Growth 50%+ 1-2% p.a. Building a
Slide 29: Credit Card Update
Credit Card Update
Slide 30: Growth & Market Share
Growth & Market Share Source RBI Data May’22 May’23 RBL Industry RBL Industry 4.6 M 87.7 M CIF 3.8 M 76.9 M 19% 14% 6,049 Cr 1,41,026 Cr Spends* 4,599 Cr 1,14,024 Cr 31% 24% 17,638Cr 2,01,131 Cr Advances 14,076 Cr 1,54,854 Cr 25% 30% Market Share – Cards (#) Market Share - Spends Market Share - Adva
Slide 31: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.63 0.59 0.55 4.61 0.52 4.52 4.56 4.41 4.24 0.43 4.10 3.91 0.21 0.21 0.21 Jun Sept Dec Mar Apr May June Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Apr'23 May'23 Jun'23 2022 2022 2022 2023 2023 2023 2023 Gross Advances Breakup (Cr.) T
Slide 32: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend # Consumer Loans ('000) 929 941 954 28,944 27,978 841 861 27,207 27,496 27,690 24,852 25,588 12,656 13,618 12,533 13,152 12,575 11,136 11,645 324 333 297 Q1'23 Q2'23 Q3'23 Q4'23 Apr'23 May'23 Jun'23 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Apr'23 May'23 Jun'23 Retai
Slide 33: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 1.26 1.45 0.74 1.16 As on 30th June 0.93 0.82 3% Cards-in- Force 15% 20% 19% 33% 36% 67% 54% 82% 10% 2023 0.84 1.11 61% 1.05 1.03 0.95 Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded
Slide 34: 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. 18.0% 16.0% 6MOB$30+ Comparison with Industry 12.0% $30+ Comparison with Industry 14.0% 10.0% INDUSTRY INDUSTRY 12.0% 8.0% 10.0% RBL RBL 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% 2.0% Refer note below 0.0% 0.0% Q4 Q
Slide 35: Microfinance Update
Microfinance Update
Slide 36: Microfinance Distribution Network
Microfinance Distribution Network (1) (2) (43) 6 Active BC Partners: 3 (39) State & District Presence: (82) 101 (58) (26) (113) (2) • 21 States and 2 Union Territory 56 (50) 86 16 • 405 Districts (39) (47) (67) 24 • 110000+ villages covered (83) 87 (14) Microfinance Presence Branches : • Microfinanc
Slide 37: Portfolio growth driven by new customers
Portfolio growth driven by new customers Net Advances Disbursements 7,132 4,852 5,021 5,963 6,517 2,474 MF Regulations – BRE and BCMS development 2,162 13% 12% 12% 269 23 1,865 1,451 31% 43% 265 173 145 87% 88% 88% 2,205 69% 1,692 1,897 57% 1,306 8 15 March 2021 March 2022 Dec 2022 March 2023 June 2
Slide 38: Portfolio Concentration and Delinquency Trend
Portfolio Concentration and Delinquency Trend Portfolio Comparison Old Book vs New Book Portfolio 68% Contribution % 63% 56% 57% 1.68% 42% 39% 98.32% RBL Peer 1 Industry Top 3 states Top 5 states Source : Equifax- Data as of April-2023 Old Book New Book Microfinance PAR – RBL* vs Peer/Industry *New
Slide 39: Marketing Update
Marketing Update
Slide 40: Awards & Accolades
Awards & Accolades ❖ Awarded Best Bank for CSR at the ASIAMONEY Best Bank Awards 2023 for the Bank’s Direct implementation under its flagship CSR initiative - Umeed1000! 40
Slide 41: Annexures
Annexures
Slide 42: 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 43: Board of Directors (Contd.)
Board of Directors (Contd.) Mr. Yogesh Dayal Mr. Gopal Jain Additional Director (Appointed by RBI) Non-Executive Non-Independent Director A career Central Banker with 25 years of experience with RBI. Managing Partner and Founder of Gaja Capital, Founded Gaja Currently Chief General Manager and in ch
Slide 44: 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 45: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Pankaj Sharma Mr. R. Rajagopalan Chief Operations Officer Head – Internal Audit Previously, Head Retail Operations, Axis Bank Previously, associated with HDFC Bank, Kotak Mahindra Bank (21) (30) Mr. Prakash Gupta Mr. N Hari Prakash Chief Comp
Slide 46: Balance Sheet
Balance Sheet Particulars June 2022 March 2023 June 2023 Liabilities Capital 600 600 600 Reserves and Surplus 12,252 12,977 13,277 Deposits 79,216 84,887 85,636 Borrowings 11,871 13,331 14,775 Other Liabilities 3,793 4,082 4,064 Total 107,732 115,876 118,353 Assets Cash & Balances with RBI 9,907 6,2
Slide 47: Profit & Loss Statement
Profit & Loss Statement Particulars Q1 FY24 Q1 FY23 Q4 FY23 FY23 FY22 Income Interest Earned 2,680 2,089 2,496 9,130 8,176 Interest Expended 1,434 1,062 1,285 4,678 4,149 Net Interest Income 1,246 1,028 1,211 4,451 4,027 Other Income 685 614 674 2,489 2,341 Total Income 1,932 1,641 1,885 6,941 6,367
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars June 2022 March 2023 June 2023 Liabilities Capital 600 600 600 Reserves and Surplus 12,172 12,926 13,258 Deposits 79,216 84,875 85,604 Borrowings 11,871 13,332 14,776 Other Liabilities 3,840 4,074 4,053 Total 107,699 115,806 118,290 Assets Goodwill on Consolida
Slide 49: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q1 FY24 Q1 FY23 Q4 FY23 FY23 FY22 Income Interest Earned 2,816 2,203 2,616 9,550 8,445 Interest Expended 1,434 1,062 1,285 4,679 4,148 Net Interest Income 1,382 1,141 1,331 4,871 4,297 Other Income 694 614 684 2,507 2,352 Total Income 2,076 1,755 2,01
Slide 50: Historical Performance
Historical Performance FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 Q1 Particulars FY24 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 12,996 13,294 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79
Slide 51: Thank you
Thank you apno ka bank | RBL Bank 51