Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q2 FY23 Earnings Presentation
56 slides from Rbl Bank's earnings presentation, Oct 22, 2022
Slide 1: Investor Presentation Q2 FY23
Investor Presentation Q2 FY 23 Oct 22, 2022 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: RBL Bank Q2 FY23 Snapshot
RBL Bank Q2 FY23 Snapshot Improving Financial Metrics Diversified Advances with Growing Granular Deposits Growing Retail ▪ NIM at 4.5%, improved by 19bps ▪ Total Advances of Rs. 62,942 crore sequentially ▪ Total Deposits grew 5% YoY to Rs. growing at 12% YoY and 4% QoQ 79,404 crore ▪ Other Income 35
Slide 5: Q2 FY23 Key Financial Highlights
Q2 FY23 Key Financial Highlights Advances Rs. 62,942 crore Wholesale Advances Rs. Deposits Rs. 79,404 crore* CASA Rs. 28,718 crore Healthy 30,256 crore Balance 12% YoY 4% QoQ 20% YoY 2% QoQ 5% YoY ~ Flat QoQ 7% YoY 1% QoQ Sheet NII Rs. 1,064 crore Core Fee Income Rs. 544 Net Revenue Rs. 1,648 Profit
Slide 6: Key Drivers
Key Drivers Well Diversified Advances; leading market share in Credit Cards Strong Liability Franchise; Increasing reliance on granular Retail Deposits Stable Financial Metrics; Increased focus on Profitable Growth of Balance Sheet Stable Asset Quality with Prudent Provisioning Healthy Capital Adequ
Slide 7: Well Diversified Advances
Well Diversified Advances
Slide 8: Well Diversified Advances
Well Diversified Advances Advances by Segment (%) • 82.9% of Wholesale Exposure is to A- or better rated customers 48.1% • Wholesale Exposure is well diversified across 51.9% industries with top 10 industries accounting for only 28.4% of total exposure • Bank among the largest Credit Card issuer in
Slide 9: Advances Mix; Healthy Advances Growth
Advances Mix; Healthy Advances Growth Yield Proportio Sep 30,2022 Sep 30,2021 YoY June 30,2022 QoQ H1 FY23 n C&IB 23,119 19,397 19% 23,111 0% 6.8% CB 7,137 5,828 22% 6,645 7% (6.6%) 48% Wholesale 30,256 25,224 20% 29,756 2% Business Loans 7,350 9,333 (21%) 7,547 (3%) Credit Cards 14,644 12,482 17% 1
Slide 10: Borrower's External rating Profile
Borrower’s External rating Profile Sep 30, 2021 June 30, 2022 Sep 30, 2022 54,802 59,163 59,943 11,186 11,240 19.0% 11,413 19.0% 20.4% A- or A- or A- or 16,404 29.9% better 21,236 21,238 35.4% 35.9% better better 78.3% 83.3% 82.9% 15,344 28.0% 16,825 17,042 28.4% 28.4% 8,992 7,974 7,980 16.4% 15.0%*
Slide 11: Diversified Industrial Concentration
Diversified Industrial Concentration Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure NBFC (ex. HFC & DFI) 3,007 100:0 3.7% Power 2,914 52:48 3.6% HFC 2,807 100:0 3.5% Retail/ Distribution 2,579 73:27 3.2% Construction 2,331 26:74 2.9% Engineering 2
Slide 12: Strong Liability Franchise
Strong Liability Franchise
Slide 13: CASA & Total Deposits
CASA & Total Deposits 7% YoY growth in CASA ; Total deposits grew by 5% YoY CASA : 35.4% CASA : 36.0% CASA : 36.2% CASA : 26,734 CASA : 28,526 CASA : 28,718 79,216 79,404 75,588 15.4% 14.8% 12.7% 20.6% 21.4% 22.6% 64.6% 64.0% 63.8% Sep 30, 2021 June 30, 2022 Sep 30, 2022 Term Deposits Savings Accoun
Slide 14: Deposits, Liquidity and Cost Trends
Deposits, Liquidity and Cost Trends Yield and Cost LCR Position 11.22% 11.62% 11.31% 11.26% 12.22% 11.22% 11.46% 154% 155% 146% 138% 149% 156% 134% 5.54% 5.27% 5.10% 4.82% 4.81% 4.87% 5.19% 5.45% 5.20% 5.01% 4.76% 4.75% 4.84% 5.14% 90% 100% 100% 100% 100% 100% 100% March 31, June 30, Sep 30, Dec 31,
Slide 15: Stable Financial Metrics
Stable Financial Metrics
Slide 16: Stable Net Profit QoQ
Stable Net Profit QoQ Q2 Q2 Q1 H1 H1 Parameter YoY QoQ FY23 FY22 FY23 FY23 FY22 Net Interest Income 1,064 915 16% 1,028 4% 2,092 1,885 Other Income 583 593 (2%) 614 (5%) 1,197 1,246 Net Total Income 1,648 1,508 9% 1,641 0% 3,289 3,131 Operating Profit 512 691 (26%) 529 (3%) 1,041 1,457 Provisions (O
Slide 17: Core Fee Income increasing QoQ
Core Fee Income increasing QoQ Other Income Core Fee Income Breakup 593 614 583 1,246 1,197 506 531 544 1,001 1,075 13% 7% 20% 10% 15% 4% 5% 4% 4% 22% 4% 22% 22% 27% 26% 2% 3% 3% 2% 2% 85% 87% 93% 80% 90% 31% 34% 36% 30% 32% 85% 27% 24% 30% 27% 27% 9% 11% 11% 10% 11% Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22
Slide 18: Operating Costs Increase Driven By Business Volume Growth; Credit Costs Lower QoQ
Operating Costs Increase Driven By Business Volume Growth; Credit Costs Lower QoQ Operating Expenses Net Credit Cost by Business (bps) 118* 43* 39* 374* 82* 817 1,112 1,135 1,674 2,248 13% 364 105 11% 13% 11% 11% 9% 22% 14% 11% 10% 13% 22% 4% 11% 11% 11% 5% 10% 12% 22% 8% 22% 12% 23% 4% 4% 42 41 5%
Slide 19: Asset Quality
Asset Quality
Slide 20: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Sep 30, 2021 Dec 31, 2021 March 31, 2022 June 30, 2022 Sep 30, 2022 Movement of Gross NPAs Opening Balance 2,911 3,131 2,902 2,728 2,537 (+) Additions during the period 1,217 766 619 653 812 (-) Upgrade 180 181 105 192 149 (-) Recoveries 290 271 222 188 164 (-) W
Slide 21: Asset Quality – NPA Position
Asset Quality – NPA Position Gross NPA by business segment Business segment Sep 30, 2021 Dec 31, 2021 March 31, 2022 June 30, 2022 Sep 30, 2022 Wholesale 1,085 1,010 1,044 1,087 1,183 Retail 2,046 1,892 1,684 1,450 1,274 Business Loans 363 353 378 377 426 Credit Cards 574 388 325 328 348 Micro-Banki
Slide 22: Slippages, Loan Provisions & Restructured Advances
Slippages, Loan Provisions & Restructured Advances Slippages Breakup Loan Provisions Breakup Particulars Net Of which Particulars As of 30th Sep For Q2 FY23 Slippages* Restructured 2022 NPA Specific Provision (towards Wholesale 96 132 1,666 392 PCR) Credit Card Restructured Provision (outside 194 7
Slide 23: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 24: Capital Adequacy – Well Capitalized
Capital Adequacy – Well Capitalized Particulars Sep 30, 2022 Sep 30, 2021 June 30, 2022 Tier 1 Capital Funds* 12,710 11,895 12,517 Tier 2 Capital Funds 1,216 610 1,180 Total Capital Funds* 13,926 12,504 13,697 Total RWA 80,187 76,564 78,222 Tier 1 CRAR* 15.9% 15.5% 16.0% Total CRAR* 17.4% 16.3% 17.5
Slide 25: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.8 0.4 Basel III compliant Tier II bonds ICRA AA- (Stable) 6.6 (Re-affirmed dated Sep 9, 2022) 37.2 CARE AA- (Stable) (Re-affirmed dated Oct 3, 27.2 2022) Certificate of Deposits ICRA A1+ (Re-aff
Slide 26: Growing Distribution Network
Growing Distribution Network
Slide 27: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 10.66 11.15 11.30 11.77 9.63 9.83 9.97 GIFT 52 2 city 13 New Delhi March 31, June 30, Sep 30, Dec 31, March 31, June 30, Sep 30, branch 2021 2021 2021 2021 2022 2022 2022 16 22 Channel Breakup 13 1 6 Channels Numb
Slide 28: Digital Initiatives
Digital Initiatives
Slide 29: 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 Digital Onboarding bank relationships Interbank tieups Issuance, for Nostro Acquiring settlements services 2 Payment and Cash withdrawal/ 6 Collection through AEPS, DMT, account APIs, Indo transfer eNACH N
Slide 30: Our Continual market standing in the digital space
Our Continual market standing in the digital space… QOQ Increase in LRS QOQ Increase in PPI Txn Volume ~ 54% Customer Volume ~ 8% For period Q2FY23 74.24 L 15.8 CR Overall BAAS Total Payment Payment service Transaction Volume Customers* (in nos.) * Overall number of Payment Aggregator, Wallet holder
Slide 31: Deepening our digital footprint
Deepening our digital footprint… Issuance Products INR Remittances FX Products Acquiring & Aggregation API, UPI & Others • Commenced • Launched outward • The Bank has partnered • 1.80 Lac Unique development and testing remittance product for a with Amazon Pay to offer Customer Service Points • Escro
Slide 32: Credit Card Update
Credit Card Update
Slide 33: Growth & Market Share
Growth & Market Share Source RBI Data Sept’21 Sept’22 RBL Industry RBL Industry 4.1 M 77.7 M CIF 3.1 M 65.0 M 32% 20% 4,833 Cr 1,22,905 Cr Spends 3,447 Cr 80,477 Cr 40% 53% 14,644Cr 1,67,443 Cr* Advances 12,848 Cr 1,31,532 Cr 17% 27% Market Share – Cards (#) Market Share - Spends Market Share – Adva
Slide 34: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.60 4.01 4.04 4.10 0.52 3.91 3.68 0.45 3.46 0.43 3.10 0.24 0.19 0.17 0.16 Q2'22 Q3'22 Q4'22 Q1'23 July'22 Aug'22 Sept'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 July'22 Aug'22 Sept'22 Advances Breakup (Cr.) Total Spends (Cr.) 12,8
Slide 35: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend Consumer Loans ('000) 24,963 25,228 24,852 25,761 24,890 25,588 855 841 861 23,611 21,232 757 753 10,984 11,809 11,836 11,136 11,534 11,377 11,645 9,620 288 289 284 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 July'22 Aug'22 Sept'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 July'22
Slide 36: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 1.42 1.65 0.78 1.14 0.98 0.82 Cards-in- Force 3% As on 30th Sep 15% 21% 17% 31% 32% 69% 82% 58% 10% 2022 0.87 1.08 1.04 1.01 62% 0.93 Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded B
Slide 37: Retail Spends Insights
Retail Spends Insights SPEND# ACROSS CATEGORY 200% Daily Discretionary Travel 180% 11,092 Cr 160% 140% 2,316 Cr 6,111 Cr 120% 1,702 Cr 100% 690 Cr 80% 667 Cr 60% 40% 20% 0% DJF'FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Daily 100% 63% 89% 105% 113% 113% 133% 151% 159%
Slide 38: 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% 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% 12.0% 3MOB$30+ Comparison with Industry Refer note below 7.0% INDUSTRY RBL 2.0% -3.0
Slide 39: Tighter risk measures on new acquisition – lowering risk in the portfolio
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* 5.0 80% Pre-Covid 4.5 70% 4.0 Post-Covid 60% 3.5 50% 3.0 2.5 2.03 40% 1.92 1.81 1.59 1.86 2.0 1.66 1.51 1.50 30% 1.37 1.5 20% 1.
Slide 40: Micro-Banking Update
Micro-Banking Update
Slide 41: Micro-Banking Distribution Network
Micro-Banking Distribution Network Post Implementation of New RBI MF regulations Disbursements have reached 800 Crs per month Monthly-Disbursals-FY-23 In crores (1) 809 657 (2) (44) 6 415 (43) (84) 103 (60) (26) 0 0 23 (118) (2) Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 59 (52) 92 16 (40) (49) (72)
Slide 42: Micro-Banking Portfolio Concentration
Micro-Banking Portfolio Concentration State Name % of Portfolio % of % of % of Top-3 & Top-5 Portfolio Contribution Sept’22 Portfolio Portfolio Portfolio Mar’22 Mar’21 Mar’20 61% 63% 54% 51% 45% Bihar 22.7% 18.9% 12.8% 14.7% 37% Rajasthan 14.4% 14.7% 10.9% 7.3% Uttar Pradesh 13.5% 11.2% 7.8% 3.4% Ha
Slide 43: Portfolio growth driven by new customers, ticket size growth moderate
Portfolio growth driven by new customers, ticket size growth moderate 3.15 Million active loan accounts In Rs. crores NPA-Post-COVID-New-Book 13% Growth 0.47% 0.48% 0.46% 0.44% 0.39% 7,265 0.34% 6,469 5,038 5,501 4,757 4,206 Mar 31,2019 Mar 31,2020 Mar 31,2021 Mar 31,2022 June 30,2022 Sept 30,2022 A
Slide 44: Collections Efficiency
Collections Efficiency Collection Efficiency – Non NPA Total Book Collection-Efficiency – Non NPA New Book** 98.7% 98.4% 97.3% 97.4% 96.9% 95.9% 99.29% 99.25% 99.09% 99.35% 98.68% 98.35% 98.33% 86.2% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Mar'22 Apr'22 May'22 June'22 July'22 Aug'22 Sept'22
Slide 45: Experienced Board and Leadership Team
Experienced Board and Leadership Team
Slide 46: Board of Directors
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, Indian Bank and
Slide 47: 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 48: 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 49: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Vijay Anandh Mr. Pankaj Sharma Chief Credit Officer - Retail Chief Operations Officer Previously, associated with Barclays Finance, ICICI Bank Previously, Head Retail Operations, Axis Bank (25) (21) Mr. Sanker Parameswaran Mr. R. Rajagopalan
Slide 50: Annexures
Annexures
Slide 51: Balance Sheet
Balance Sheet Particulars Sep 30, 2022 June 30, 2022 Sep 30, 2021 Liabilities Capital 600 600 599 Reserves and Surplus 12,470 12,252 11,653 Deposits 79,404 79,216 75,588 Borrowings 10,776 11,871 12,939 Other Liabilities 4,151 3,793 3,695 Total 107,402 107,732 104,474 Assets Cash & Balances with RBI
Slide 52: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 FY23 Q2 FY22 Q1 FY23 H1 FY23 H1 FY22 Income Interest Earned 2,176 1,975 2,089 4,265 4,001 Interest Expended 1,111 1,059 1,062 2,173 2,116 Net Interest Income 1,064 915 1,028 2,092 1,885 Other Income 583 593 614 1,197 1,246 Total Income 1,648 1,508 1,641 3,289 3
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Sep 30, 2022 June 30, 2022 Sep 30, 2021 Liabilities Capital 600 600 599 Reserves and Surplus 12,376 12,172 11,633 Deposits 79,404 79,216 75,560 Borrowings 10,781 11,871 12,940 Other Liabilities 4,194 3,840 3,713 Total 107,355 107,699 104,444 Assets Goodwill on
Slide 54: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q2 FY23 Q2 FY22 Q1 FY23 H1 FY23 H1 FY22 Income Interest Earned 2,263 2,034 2,203 4,466 4,138 Interest Expended 1,111 1,059 1,062 2,173 2,115 Net Interest Income 1,152 975 1,141 2,293 2,023 Other Income 585 595 614 1,199 1,255 Total Income 1,737 1,570
Slide 55: Historical Performance
Historical Performance FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 H1 Particulars FY23 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 12,426* Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,007 79,404
Slide 56: Thank you
Thank you apno ka bank | RBL Bank 56