RBL Bank Ltd. · NSE:RBLBANK
RBL Bank — Q2 FY17 Earnings Presentation
37 slides from RBL Bank's earnings presentation, Oct 19, 2016
Slide 1: Investor Presentation 2nd Quarter / Half Year FY 17
Investor Presentation 2nd Quarter / Half Year FY 17 October 19, 2016
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 Agri Agribusiness banking G-Sec Government Securities ARC Asset Reconstruction Company LAP Loan Against Property ATM Automated Teller Machine MF Mutual Funds BBB Branch & Business Banking NFB Non Fund Based BC Business Correspondent NIM Net Interest Margin BD Bills Discounting
Slide 4: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 7 Financial Performance 11 Distribution Network 23 New Initiatives and Recent Developments 25 Shareholding Pattern and Ratings 28 Annexures 30 4
Slide 5: Key Performance Highlights
Key Performance Highlights
Slide 6: Performance Overview
Performance Overview H1 FY 17 Financial Highlights Improving NIM & diversification of Other Income led by Core Fees Better utilization of investments done to date Savings account strategy working well (Growth of 102% yoy) Investing in retail and mass banking Credit markets still Notes: challenged. N
Slide 7: RBL Vision 2020
RBL Vision 2020
Slide 8: Performance Benchmarks
Performance Benchmarks RBL Vision 2020 Actual H1 FY 17 Advances 30-35% CAGR 44% 0.75 - 1% increase March 31, 2016: 18.6% CASA Ratio every year September 30, 2016: 19.9% Other Income % ~ 1/3rd of Net Total Income 38.1% Cost/Income ratio of March 31, 2016: 58.6% Operational Efficiency 51% - 52% by 202
Slide 9: Key Initiatives of Vision 2020
Key Initiatives of Vision 2020 Leveraging technology to acquire, engage and service clients Technology Enhancing distribution through a combination of owned branches, BCs, Customer Service Points ('CSPs') Distribution Creation of Transaction and Payment platforms that leverage changes in ecosystem d
Slide 10: Key Investment Highlights
Key Investment Highlights 1. One of India’s Fastest Growing Private Sector Banks 2. Robust Corporate Governance Framework as well as Experienced Management Team 3. Focus on Effective Risk Management and Asset Quality 4. Focus on Operational Quality and Scalability 5. Leveraging Technology for Creati
Slide 11: Financial Performance
Financial Performance
Slide 12: Performance Highlights
Performance Highlights Parameter Q2 17 Q2 16 YoY Q1 17 QoQ H1 17 H1 16 FY 16 Net Interest Income 303 190 59.5% 245 23.8% 548 357 819 Other Income 169 112 50.6% 168 0.9% 337 238 491 Net Total Income 472 302 56.2% 412 14.5% 884 595 1,310 Operating Profit 219 121 81.3% 184 18.8% 404 232 542 Net Profit
Slide 13: Performance Highlights (Contd.)
Performance Highlights (Contd.) Parameter H1 17 H1 16 YoY Q1 17 QoQ FY 16 Advances 24,875 17,279 44.0% 22,265 11.7% 21,229 Deposits 27,960 20,284 37.8% 25,803 8.4% 24,349 Investment 12,262 9,425 30.1% 12,547 -2.3% 14,436 Parameter H1 17 H1 16 Q1 17 FY 16 CASA 19.9% 18.0% 18.5% 18.6% GNPA 1.10% 0.93%
Slide 14: Key Profit & Loss Parameters
Key Profit & Loss Parameters Other Income breakup Core Fee Income breakup 110 167 169 237 337 94 123 147 182 269 11% 11% 11% 12% 11% 14% 13% 23% 20% 11% 11% 27% 15% 16% 16% 12% 12% 16% 14% 15% 86% 87% 48% 39% 39% 45% 39% 73% 77% 80% 19% 19% 20% 20% 20% Q2 16 Q1 17 Q2 17 H1 16 H1 17 Q2 16 Q1 17 Q2 17
Slide 15: Advances Breakup
Advances Breakup H1 17 H1 16 YoY Q1 17 QoQ FY 16 Yield Proportion H1 17 C&IB 10,592 6,533 62.1% 8,874 19.4% 8,186 CB 4,624 4,202 10.0% 4,651 -0.6% 4,689 Wholesale 10.1% 61% (11.2%) Wholesale 15,216 10,735 41.7% 13,525 12.6% 12,875 BBB 4,342 2,669 62.7% 3,733 16.3% 3,465 Agri 1,676 1,497 12.0% 1,834
Slide 16: Advances Breakup (Contd.)
Advances Breakup (Contd.) Break up of advances - Geography Secured-Unsecured 17,279 21,229 22,265 24,875 17,279 21,229 22,265 24,875 5.8% 10.3% 12.6% 14.3% 14% 17% 19% 21% 22.5% 22.1% 21.1% 20.3% 43.0% 40.2% 39.6% 38.6% 86% 83% 81% 79% 28.7% 27.4% 26.7% 26.8% H1 16 FY 16 Q1 17 H1 17 H1 16 FY16 Q1 17
Slide 17: Top Industry Exposures and Break up of NFB Book
Top 10 Industry Exposures and Break up of NFB Book Top 10 industry exposures Industry Exposure FB-NFB Split % of Exposure Retail / distribution 2,474 76 : 24 5.78% Construction 2,455 47 : 53 5.74% Pharmaceuticals 2,053 85 : 15 4.80% Power 1,901 61 : 39 4.44% NBFC-MFI 1,825 97 : 3 4.27% Food Processi
Slide 18: Asset Quality
Asset Quality Gross NPA by business segment H1 17 H1 16 Q1 17 FY 16 Movement of Gross Business H1 17 H1 16 Q1 17 FY 16 NPAs segment Opening Balance 208 111 208 111 C&IB 37.8 50.1 26.6 17.1 (+) Additions during % 0.36% 0.77% 0.30% 0.21% 106 79 68 200 the period CB 159.2 78.5 158.9 138.4 (-) Upgrade 1
Slide 19: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars H1 17 H1 16 Q1 17 FY 16 Tier 1 Capital Funds 3,991 2,343 3,083 2,972 Tier 2 Capital Funds 837 81 496 491 Total Capital Funds 4,828 2,424 3,579 3,463 Total RWA 32,040 22,073 29,072 26.761 Tier 1 CRAR 12.5% 10.6% 10.6% 11.1% Total CRAR*
Slide 20: Deposits Breakup
Deposits Breakup CASA: 18.0% CASA: 18.6% CASA : 18.5% CASA : 19.9% 27,960 25,803 33%* 40%* 24,349 24%* 9.9% 10.3% 10.0% 20,284 11.4% 8.2% 7.2% 11.2% 6.8% 81.4% 81.5% 80.1% 82.0 H1 16 FY 16 Q1 17 H1 17 * Annualised Term Deposits Savings Account Current Account 20
Slide 21: Investment Breakup and Yields
Investment Breakup and Yields Investment Breakup 9,425 14,436 12,547 12,262 7.2% 7.3% 8.7% 13.6% 9.8% 6.8% 10.9% 12.6% 15.0% 11.7% 13.1% 73.8% 71.2% 70.8% 67.3% H1 16 FY 16 Q1 17 H1 17 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q2 17 Q1 17 Q2 16 H1 17 H1 16 Total Investmen
Slide 22: Trends in Key Business Parameters
Trends in Key Business Parameters Quarterly Yields Cost of Funds, Deposits 7.8% 7.6% 11.8% 11.7% 11.5% 7.8% 7.5% 7.5% 11.2% 11.3% 7.2% 10.5% 10.4% 10.2% 9.9% 10.2% 7.4% 7.3% 7.3% 8.0% 7.7% 7.1% 7.9% 7.8% 8.0% 3.0% 3.2% 3.2% 3.4% 2.8% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Yield
Slide 23: Distribution Network
Distribution Network
Slide 24: Our Distribution Network
Our Distribution Network Locations Customers (Mn.) 9 New Delhi 2.30 1.88 2.04 4 1.55 1.70 3 7 14 13 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 4 1 Channel Breakup 1 94 1 Channels Number of Daman transaction points & Diu 4 Branch 201 1 23 BC Branches 429 Dadra & Branch, ATM, CSP, BC Nagar Haveli CSP 40,899 14 Bra
Slide 25: New Initiatives and Recent Developments
New Initiatives and Recent Developments
Slide 26: New Initiatives and Recent Developments
New Initiatives and Recent Developments Launched our brand with tag line, ‘Apno ka bank’ using television, Social media and outdoor advertising Branding Raised Rs 330 Crores from the UK-based development finance institution, CDC Group Plc (CDC), through Basel III compliant Tier II sub-debt Capit
Slide 27: Our Recent Awards
Our Recent Awards FE Best Bank Award - Growth category for Awarded Best Debit Card innovations for the India Startup 2013-2014 and 2014-2015 Club Debit Card at MasterCard Innovations Award 2016 Best Bank for Cyber Defence by IDRBT Best Corporate Payment Project at The Asian Banker Technology Innovat
Slide 28: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings
Slide 29: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings Shareholding by category (%) Ratings Instrument Rating by Implication ICRA 1.0 1.5 Basel III A+ hyb Instruments 7.9 compliant Tier rated in this category are II bonds considered to have high 8.6 degree of 35.8 safety regarding timely servicing of financial obligations
Slide 30: Annexures
Annexures
Slide 31: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Board of Directors Mr. Vishwavir Ahuja Mr. Palepu Sudhir Rao Managing Director and CEO Independent Director Previously, Managing Director & Country Executive Officer of Bank Currently, Associated with a Number of Corporates including Aditya of America for
Slide 32: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Experienced and Professional Management Team Mr. Vishwavir Ahuja Mr. R. Gurumurthy Managing Director and CEO Head – Risk and Governance Previously, Managing Director & Country Executive Officer of Bank Previously, associated with Standard Charter
Slide 33: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Experienced and Professional Management Team (Cont’d) Mr. Surinder Chawla Mr. Rana Vikram Anand Head – Geography, Business and Branch Banking Head – Segments and Products, Business and Branch Banking Previously, associated with Standard Chartered
Slide 34: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 17 Q2 16 Q1 17 H1 17 H1 16 Income Interest Earned 902 666 865 1,766 1,269 Interest Expended 599 474 620 1,218 913 Net Interest Income 303 192 245 548 356 Other Income 169 115 167 337 238 Total Income 472 307 412 884 596 Expenditure Operating Expenses 253 185 22
Slide 35: Balance Sheet Statement
Balance Sheet Statement Particulars H1 17 H1 16 Q1 17 FY 16 Liabilities Capital 370 297 329 325 Reserves and Surplus 3,660 2,082 2,784 2.665 Deposits 27,960 20,287 25,803 24,349 Borrowings 7,775 5,547 8,288 10,536 Other Liabilities 1,290 1,567 1,287 1.287 Total 41,055 29,780 38,490 39,161 Assets Cas
Slide 36: Our 10 year History
Our 10 year History Particulars FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 H1 17 Net Worth 196 320 338 349 1,075 1,131 1,594 2,012 2,224 2,960 4,030 Deposits 876 1,101 1,307 1,585 2,042 4,739 8,341 11,599 17,099 24,349 27,960 Advances (Net) 531 586 801 1,170 1,905 4,132 6,376 9,835
Slide 37: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 37