Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q2 FY24 Earnings Presentation
54 slides from Rbl Bank's earnings presentation, Oct 21, 2023
Slide 1: Exchange filing cover letter
October 21, 2023 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 provisions
Slide 2: Investor Presentation Q2 FY24
Investor Presentation Q2 FY 24 October 21, 2023 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: Key Drivers of Business Performance in Q2 FY24
Key Drivers of Business Performance in Q2 FY24 Consolidated PAT grew 77% YoY and 4% QoQ to Rs. 331 crore; Standalone PAT for Q2 FY24 grew 46% YoY and 2% QoQ to Rs. 294 crore Consolidated Operating Profit grew 54% YoY and 12% QoQ to Rs. 765 crore; Standalone Operating Profit for Q2 FY24 grew 43% YoY
Slide 6: Key Changes done in Q2 FY24
Key Changes done in Q2 FY24 In Q2FY24, the Bank saw a reversal of tax provisions relating to earlier financial years of Rs. 223 crore which is direct PAT benefit of Rs. 223 crore (and hence benefit of Rs. 298 crore pre tax). Bank has used this provision release as follows 1. Contingency provision of
Slide 7: Profit & Loss Statement
Profit & Loss Statement Pre - Reclass of BC charges Post - Reclass of BC charges Particulars Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Particulars Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Net Interest Net Interest 1,028 1,064 1,148 1,211 4,451 1,246 1,302 1,189 1,174 1,277 1,357 4,998 1,422 1,475 I
Slide 8: Key Ratios
Key Ratios Parameter Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Yield on Advances (Pre- 11.22% 11.46% 11.96% 12.60% 11.83% 12.80% 13.03% Reclass) Yield on Advances (Post 12.35% 12.21% 12.78% 13.54% 12.74% 13.87% 14.03% Reclass) Cost of Deposits 4.84% 5.14% 5.47% 5.73% 5.30% 6.07% 6.21% Cost of Funds
Slide 9: Q2 FY24 Key Financial Highlights
Q2 FY24 Key Financial Highlights Advances Rs. 76,324 crore Retail Advances Rs. Deposits Rs. 89,780 crore CASA Rs. 32,089 crore Healthy 44,092 crore Balance 21% YoY 4% QoQ 35% YoY 8% QoQ 13% YoY 5% QoQ 12% YoY 1% QoQ Sheet NII Rs. 1,475 crore Core Fee Income Rs. 678 Operating Profit Rs. 731 PAT Rs. 2
Slide 10: Advances and Deposits
Advances and Deposits
Slide 11: Well Diversified Advances
Well Diversified Advances LCs & Bank Guarantees Net Advances 16,413 69.0% 62,942 66,684 70,209 73,087 76,324 31.0% Guarantees LCs and Acceptances 34,977 40,866 44,092 32,686 37,778 35% YoY (17.0%) (17.3%) (17.6%) (17.4%) (17.5%) • 83.5% of Wholesale Exposure is to A- or better rated customers • Bank
Slide 12: Advances Mix; Strong Advances Growth
Advances Mix; Strong Advances Growth Yield Sep 2023 Sep 2022 YoY Jun 2023 QoQ Proportion Q2 FY24 C&IB 23,888 23,119 3% 24,719 (3%) 8.7% CB 8,345 7,137 17% 7,502 11% (6.9%) 42% Wholesale 32,233 30,256 7% 32,221 0% Credit Cards 18,572 14,644 27% 17,665 5% . Microfinance 6,785 4,584 48% 6,517 4% Busine
Slide 13: Wholesale Advances
Wholesale Advances Wholesale Advances Wholesale Exposure - Rating Breakup (%) 83.5% 63,811 30,256 31,707 32,431 32,221 32,233 A - or Better BBB 7,788 7,502 8,345 7,493 BB & Below 7,137 17% YoY 12.7% 3.8% FB+NFB Top 10 Industries FB-NFB Split % of Outstanding Outstanding 24,214 24,643 24,719 23,888 2
Slide 14: Retail Advances
Retail Advances 40,866 44,092 37,778 3,303 7% 34,977 2,017 5% 1,442 3% 3% 1,360 3% 32,686 1,242 1,597 4% 1,351 3% 1,029 3% 4,941 11% 1,269 4% 1,357 4,541 777 2% 4% 11% 905 3% 1,260 540 2% 4% 4,583 12% 1,213 4% 4,298 12% 7,689 18% 3,450 7,532 18% 11% 6,656 18% 6,882 20% 7,350 22% 6,785 15% 6,517 16%
Slide 15: Retail Disbursement (Excl. Cards)
Retail Disbursement (Excl. Cards) 2,542 2810 4,688 4,093 4,288 547 12% 296 6% 501 12% 432 11% 269 6% 315 8% 927 20% 814 698 17% 19% 0% 301 11% 444 9% 8 140 5% 292 10% 496 12% 719 17% 225 9% 304 12% 454 16% 312 11% 2,474 53% 2,152 53% 1,985 46% 1,865 73% 1,451 52% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 F
Slide 16: CASA & Total Deposits
CASA & Total Deposits 12% YoY growth in CASA ; Total deposits grew by 13% YoY Sep 22 June 23 Sep 23 79,404 85,636 89,780 63.8% 62.7% 64.3% 21.4% 19.6% 19.2% 14.8% 17.7% 16.5% TD SA CA TD SA CA TD SA CA Share of Retail LCR Deposits CASA Ratios LCR Position 33,386 35,380 36,934 38,155 39,706 36.2% 36.
Slide 17: Improving Financial Metrics
Improving Financial Metrics
Slide 18: Other Income increasing QoQ
Other Income increasing QoQ Other Income Core Fee Income Breakup 583 685 704 1,197 1,390 544 640 678 1,075 1,318 4% 4% 4% 22% 22% 4% 22% 4% 5% 22% 22% 6% 3% 93% 93% 96% 3% 2% 29% 27% 31% 90% 95% 34% 31% 31% 31% 31% 30% 27% 10% 5% 11% 10% 10% 11% 10% 7% 7% 4% Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q
Slide 19: Operating Costs Stable QoQ
Operating Costs Stable QoQ 1,245 1,460 1,448 2,519 2,909 10% 11% 12% 12% 8% 12% 11% 14% 10% 12% 9% 15% 14% 13% 8% 15% 10% 8% 8% 10% 22% 22% 19% 21% 20% 4% 3% 4% 5% 4% 4% 6% 6% 6% 5% 26% 26% 25% 27% 23% Q2 FY23 Q1 FY24 Q2 FY24 H1 FY 23 H1 FY 24 Employee Business Acquisition Payments & General Banking
Slide 20: Asset Quality
Asset Quality
Slide 21: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Movement of Gross NPAs Opening Balance 2,537 2,457 2,469 2,420 2,404 (+) Additions during the period 812 608 681 555 541 (-) Upgrade 149 99 138 97 53 (-) Recoveries 164 126 248 169 113 (-) Write Offs 578 371 344 304 33
Slide 22: Asset Quality Trends
Asset Quality Trends NPA Position PCR 3.80% 3.61% 84.3% 84.7% 85.0% 85.9% 88.4% 3.37% 3.22% 3.12% 75.6% 1.87% 67.8% 68.0% 68.1% 69.6% 1.44% 1.21% 1.05% 0.89% 1.26% 1.18% 1.10% 1.00% 0.78% Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 PCR PCR incl. Twoff GN
Slide 23: Credit Costs Trend
Credit Costs Trend Net Credit Cost by Business (bps) 39* 39* 90* 82* 131* 128 87 83 43bps excl. 84bps excl. contingency & contingency & additional additional 41 41 provision provision 4 (2) (1) 2 (1) Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 • Not Annualized for the bank or at individual segment level
Slide 24: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 25: Capital Adequacy – Well Capitalized
Capital Adequacy – Well Capitalized Particulars Sep 30, 2022 Jun 30, 2023 Sep 30, 2023 Tier 1 Capital Funds* 12,710 13,251 13,557 Tier 2 Capital Funds 1,216 1,434 1,715 Total Capital Funds* 13,926 14,685 15,272 Total RWA 80,187 88,048 89,482 Tier 1 CRAR* 15.85% 15.05% 15.15% Total CRAR* 17.37% 16.68
Slide 26: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings 1.5 Instrument Rating ICRA AA- (Stable) 11.4 (Re-affirmed dated Aug 11, 2023) 28.9 Basel III compliant Tier II bonds CARE AA- (Stable) (Re-affirmed dated Sep 27, 2023) 30.0 ICRA A1+ 8.7 Certificate of Deposits (Re-
Slide 27: Growing Distribution Network
Growing Distribution Network
Slide 28: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) 0.67 Chandigarh 0.47 4 13.65 14.31 56 12.00 12.91 GIFT 2 11.30 11.77 city 14 New Delhi branch 1 18 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 24 Channel Breakup 15 1 6 Channels Number of transaction points 29 16 Sep
Slide 29: Our Aspirations For FY26
Our Aspirations For FY26
Slide 30: Our Progress towards Aspirations For FY26
Our Progress towards Aspirations For FY 26 Key Financial Targets (FY 24 – FY 26) Actuals (Q2 FY 24) Advances Deposits Advances Deposits 20%+ CAGR 20%+ CAGR 21% YoY 13% YoY Average CASA Average CASA Granular Deposits Granular Deposits Growth Growth 50%+ 1-2% 1-2% p.a. p.a. 43.9% (1%) YoY Share of New
Slide 31: Credit Card Update
Credit Card Update
Slide 32: Growth & Market Share
Growth & Market Share Source RBI Data Aug’22 Aug’23 RBL Industry RBL Industry 4.72 Mn 91.28 Mn CIF 4.04 Mn 77.99 Mn 17% 17% 6,360 Cr 1,48,985 Cr Spends* 4,667 Cr 1,12,716 Cr 36% 32% 18,396Cr 2,17,864 Cr Advances 14,451 Cr 1,67,543 Cr 27% 30% Market Share – Cards (#) Market Share - Spends Market Shar
Slide 33: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.63 4.72 4.81 0.59 0.59 4.61 4.64 0.55 4.41 0.52 4.24 4.10 0.20 0.19 0.20 Sept Dec Mar Jun Jul Aug Sept Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Jul'23 Aug'23 Sep'23 2022 2022 2023 2023 2023 2023 2023 Total Spends (Cr.) Gross Advan
Slide 34: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend # Consumer Loans ('000) 1,029 929 941 954 28,944 28,288 28,483 28,043 861 27,207 27,690 25,588 12,656 13,618 12,575 13,193 13,364 12,754 11,645 343 347 340 Q2'23 Q3'23 Q4'23 Q1'24 Jul'23 Aug'23 Sept'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Jul'23 Aug'23 Sept'23 R
Slide 35: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 3% Cards-in- Force 15% 20% 19% As on 30th Sep 33% 37% 67% 53% 82% 2023 10% 61% Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded Bureau Tested NTC Under 30 31-45 45+ Indexed 90+ Salarie
Slide 36: Credit Cards – tighter control on new bookings
Credit Cards – tighter control on new bookings resulting in delinquencies in line with industry. 20.0% 6MOB$30+ Comparison with Industry 15.0% $30+ Comparison with Industry 15.0% INDUSTRY 12.0% INDUSTRY RBL RBL 10.0% 9.0% 6.0% 5.0% 3.0% 0.0% Refer note below 0.0% 3MOB$30+ Comparison with Industry $9
Slide 37: Microfinance Update
Microfinance Update
Slide 38: Microfinance Distribution Network
Microfinance Distribution Network (1) (2) Active BC Partners: 3 (43) 6 (39) State & District Presence: (82) 101 (26) • 21 States and 2 Union Territory (58) (113) (2) • 405 Districts 56 (50) 16 (39) (47) 86 24 (67) • 110000+ villages covered (83) 87 RBL Finserve – 821 branches Branches : (14) (Exclus
Slide 39: Portfolio Update
Portfolio Update Net Advances In Cr Disbursements In Cr 7,132 4,852 5,021 5,963 6,517 6,785 23 1865 1451 2474 2152 1985 269 13% 12% 12% 12% 255 31% 173 272 43% 145 2205 87% 88% 88% 88% 1692 1897 1713 69% 1306 57% 8 15 Mar'21 Mar'22 Dec'22 Mar'23 June'23 Sep'23 Q1_FY23 Q2_FY23 Q3_FY23 Q4_FY23 Q1_FY24
Slide 40: Portfolio Concentration and Delinquency Trend
Portfolio Concentration and Delinquency Trend Portfolio Contribution Top States 68.34% 60.48% 55.43% 56.77% 40.12% 39.32% RBL PEER 1 INDUSTRY TOP 3 TOP 5 Delinquency % 2.53% 1.97% 1.88% 1.33% 1.45% 1.15% 1.01% 0.92% 0.78% 30+ 60+ 90+ RBL PEER 1 INDUSTRY 39
Slide 41: Digital Banking Update
Digital Banking Update
Slide 42: GO Account – Subscription based account
GO Account – Subscription based account account Proposition Free Banking Services Free Value-Added Services ✓ Zero Balance Account ✓ GO Debit card, cheque ✓ Travel and Accident books and demand insurance up to Rs. 1 ✓ First year joining fee of drafts. Crore. Rs. 1999 and renewal fee of Rs. 599. ✓ De
Slide 43: New Product || ACE Deposit
New Product || ACE Deposit The ACE Deposit, which was unveiled on June 01, 2023, for the retail customers, offering non-callable deposits for value less than Rs. 2 Crore has seen a substantial traction. ACE deposit now contributes 5% of the total deposit under INR 2 Crores. The ability to attract su
Slide 44: Annexures
Annexures
Slide 45: 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 46: Board of Directors (Contd.)
Board of Directors (Contd.) Dr. Sivakumar Gopalan Mr. Gopal Jain Non-Executive Independent Director Non-Executive Non-Independent Director Faculty of the Department of Computer Science and Engineering, IIT Managing Partner and Founder of Gaja Capital, Founded Gaja Bombay, since 1991 Capital in 2004
Slide 47: 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 48: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership 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. N Hari Prakash Mr. Buvan
Slide 49: Balance Sheet
Balance Sheet Particulars Sep 2022 Jun 2023 Sep 2023 Liabilities Capital 600 600 601 Reserves and Surplus 12,470 13,277 13,520 Deposits 79,404 85,636 89,780 Borrowings 10,776 14,775 15,302 Other Liabilities 4,151 4,064 4,941 Total 1,07,402 1,18,353 1,24,144 Assets Cash & Balances with RBI 5,228 6,05
Slide 50: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 FY24 Q2 FY23 Q1 FY24 H1 FY 24 H1 FY 23 Income Interest Earned 3,008 2,286 2,856 5,864 4,536 Interest Expended 1,533 1,111 1,434 2,967 2,173 Net Interest Income 1,475 1,174 1,422 2,897 2,364 Other Income 704 583 685 1,390 1,197 Total Income 2,179 1,758 2,108 4,2
Slide 51: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Sep 2022 Jun 2023 Sep 2023 Liabilities Capital 600 600 601 Reserves and Surplus 12,376 13,258 13,538 Deposits 79,404 85,604 89,730 Borrowings 10,781 14,776 15,302 Other Liabilities 4,194 4,053 4,936 Total 1,07,355 1,18,290 1,24,108 Assets Goodwill on Consolidat
Slide 52: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q2 FY24 Q2 FY23 Q1 FY24 H1 FY 24 H1 FY 23 Income Interest Earned 3,008 2,286 2,855 5,863 4,537 Interest Expended 1,533 1,111 1,434 2,966 2,173 Net Interest Income 1,475 1,175 1,422 2,897 2,364 Other Income 713 585 694 1,407 1,199 Total Income 2,188 1,
Slide 53: Historical Performance
Historical Performance Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 H1 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 13,468 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 54: Thank you
Thank you apno ka bank | RBL Bank 53