Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q4 FY24 Earnings Presentation
64 slides from Rbl Bank's earnings presentation, Apr 27, 2024
Slide 1: Investor Presentation Q4 FY24
Investor Presentation Q4 FY 24 April 27, 2024 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: Executive Summary
Executive Summary
Slide 5: Major Highlights for the Q4 FY24
Major Highlights for the Q4 FY24 Improving operating performance.. • Net Interest Income (NII) grew 18% YoY to Rs. 1,600 crore; NIM at 5.45% • Other Income grew 30% YoY to Rs. 875 crore • Operating Profit grew 49% YoY & 16% QoQ to Rs. 887 crore • Net Profit grew 30% YoY to Rs. 353 crore; RoA at 1.08
Slide 6: Key Parameters
Key Parameters Deposits up 22% YoY to Advances up 20% YoY to 15mn+ customers across Scale Rs. 103,494 crore Rs. 83,987 crore segments Retail Assets up 30% YoY; Granular Deposits up 24% ~6+ lakh customers added Growth Drivers Comm. Banking up 17% YoY YoY in the quarter 16.18% CRAR Avg. LCR for Q4 FY2
Slide 7: Consistently delivering robust growth and sustained profitability
Consistently delivering robust growth and sustained profitability… Advances Deposits Profitability 364 70,209 73,087 76,324 79,949 83,987 84,887 85,636 89,780 92,746 103,494 331 331* 353 319 299 319 * 288 294 37,778 40,866 44,092 46,371 49,147 271 53,170 53,710 1.08% 57,692 61,407 67,045 1.01% 1.03%
Slide 8: Key Ratios
Key Ratios Parameter Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Yield on Advances 12.35% 12.21% 12.78% 13.54% 13.87% 14.03% 14.00% 14.12% Cost of Deposits 4.84% 5.14% 5.47% 5.73% 6.07% 6.21% 6.31% 6.39% Cost of Funds 4.87% 5.19% 5.55% 5.85% 6.15% 6.33% 6.45% 6.51% Net Interest Margin 5.04% 5.02
Slide 9: Advances and Deposits
Advances and Deposits
Slide 10: 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 59:41 March 2024 March 2023 YoY Dec 2023 QoQ Net Funded Advances Corporate Banking 25,725 24,666 24,643
Slide 11: Wholesale Advances; growth led by Commercial Banking
Wholesale Advances; growth led by Commercial Banking Wholesale Advances Wholesale Exposure - Rating Breakup (%) 86.1% 68,281 32,431 32,221 32,233 33,577 34,840 A - or Better BBB BB & Below 9,115 7,788 7,502 8,345 8,912 17% YoY Total Rated Exposure 2.2% 11.7% FB+NFB Top 10 Industries FB-NFB Split % o
Slide 12: Retail Advances growth of 30% YoY
Retail Advances growth of 30% YoY 37,778 40,866 44,092 46,371 49,147 2,347 5% 1,721 4% 2,920 2,221 5% 2,683 1,631 1,360 1,997 1,484 1,442 6,260 13% 1,351 3% 1,242 974 5,915 1,357 4% 4,779 1,029 3% 4,416 4,501 12% 8,161 17% 8,375 7,570 8,077 7,225 19% 7,511 15% 6,827 6,785 6,517 5,963 16% 3,888 8% 3,
Slide 13: Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets
Retail Disbursement (Excl. Cards); Increased focus to grow secured retail assets 5,358 4,786 5,002 5,958 6,163 548 9% 829 512 10% 939 15% 429 765 670 361 326 13% 5% 714 412 296 6% 693 269 1,087 18% 315 861 16% 772 1,316 658 545 10% 968 16% 607 834 647 2,474 46% 2,295 37% 2,152 1,985 1,989 Q4 FY23 Q1
Slide 14: Deposits Breakup, growth led by granular deposits
Deposits Breakup, growth led by granular deposits Total deposits grew by 22% YoY; CASA Ratio at 35.2% March 23 Dec 23 March 24 84,887 92,746 103,494 62.6% 66.2% 64.8% 19.9% 17.4% 18.8% 17.4% 15.0% 17.8% TD SA CA TD SA CA TD SA CA Share of Retail LCR Deposits & CASA Ratios Deposits < Rs. 2 crore LCR
Slide 15: Improving Financial Metrics
Improving Financial Metrics
Slide 16: Strong Core Fee Income Growth
Strong Core Fee Income Growth Other Income Core Fee Income Breakup 674 778 875 2,489 3,043 658 729 829 2,323 2,876 3% 4% 20% 4% 4% 23% 12% 22% 21% 4% 7% 22% 7% 98% 94% 95% 5% 24% 25% 3% 93% 95% 28% 27% 30% 34% 31% 33% 30% 32% 2% 6% 5% 7% 5% 9% 9% 9% 11% 9% Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q
Slide 17: Stable Operating Costs
Stable Operating Costs 1,438 1,558 1,588 5,285 6,055 11% 11% 13% 10% 13% 14% 8% 12% 13% 12% 9% 14% 8% 6% 8% 35% 31% 36% 36% 32% 4% 4% 5% 3% 3% 6% 4% 5% 6% 5% 25% 25% 25% 26% 24% Q4 FY23 Q3 FY24 Q4 FY24 FY 23 FY 24 Employee Premises Depreciation Business Acquisition & Collections Payments & General B
Slide 18: Stable Asset Quality
Stable Asset Quality
Slide 19: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Movement of Gross NPAs Opening Balance 2,469 2,420 2,404 2,441 2,551 (+) Additions during the period 681 555 541 666 680 (-) Upgrade 138 97 53 100 91 (-) Recoveries 248 169 113 100 148 (-) Write Offs 344 304 339 356 72
Slide 20: Loan Provisions Breakup
Loan Provisions Breakup Particulars As of 31st For Q4 FY24 March 2024 NPA Specific Provision (towards 1,652 459 PCR) Contingency Buffer on Credit Cards, Personal Loans and 282 20 Microfinance Advances (outside PCR) Restructured Provision (outside 67 (14) PCR) Standard Provision (outside PCR) 394 22
Slide 21: Improving Asset Quality
Improving Asset Quality NPA Position PCR 85.0% 85.9% 88.4% 89.3% 89.8% 3.37% 3.22% 3.12% 3.12% 2.65% 75.6% 75.1% 72.7% 68.1% 69.6% 1.21% 1.05% 0.89% 0.63% 0.74% 1.10% 1.00% 0.78% 0.80% 0.51% Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 PCR PCR incl. Twoff
Slide 22: Credit Costs Trend Stable and Within Guidance
Credit Costs Trend Stable and Within Guidance Net Credit Cost by Business (bps) 29* 48* 53* 149 231 175 42 43 150 32 40 8 5 16 1 2 Q4 FY23 Q3 FY24 Q4 FY24 (1) FY23 FY24 (4) • Not Annualized for the bank or at individual segment level for the quarter 22
Slide 23: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 24: Adequately Capitalised for Growth
Adequately Capitalised for Growth Total RWA 75,909 78,222 80,187 83,353 85,138 88,048 89,482 94,640 98,630 17.51% 17.37% 16.99% 16.92% 17.07% 16.82% 16.68% 16.42% 16.18% Q3FY24 saw the 16.21% 16.00% impact of the 15.85% 15.49% regulatory direction 15.25% 15.15% 15.05% of the RBI in 14.58% November 2
Slide 25: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings 1.6 Instrument Rating ICRA AA- (Stable) 11.6 (Re-affirmed dated Aug 11, 2023) Basel III compliant Tier II bonds 32.5 CARE AA- (Stable) (Re-affirmed dated March 15, 2024) 25.1 ICRA A1+ (Re-affirmed dated Aug 11, 202
Slide 26: Growing Distribution Network
Growing Distribution Network
Slide 27: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Customers (Mn.) Locations Chandigarh 4 14.97 15.57 13.65 14.31 GIFT 58 12.91 2 city 14 New Delhi branch 1 19 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 24 Channel Breakup 15 1 6 Channels Number of transaction points 33 17 March 2023 Dec 2023 March 20
Slide 28: Our Aspirations For FY26
Our Aspirations For FY26
Slide 29: Our Progress towards Aspirations For FY26
Our Progress towards Aspirations For FY 26 Key Financial Targets (FY 24 – FY 26) Actuals (Q4 FY 24 & FY24) Advances Deposits Advances Deposits 20%+ CAGR 20%+ CAGR 20% YoY 22% YoY Average CASA Average CASA Granular Deposits Granular Deposits Growth Growth 50%+ 1-2% 1-2% p.a. p.a. 42.3% (2%) YoY Share
Slide 30: Credit Card Update
Credit Card Update
Slide 31: Business Volumes: Growth & Market Share
Growth & Market Share Source RBI Data Mar’23 Mar’24 RBL Industry RBL Industry 5.19 M 101.80 M CIF 4.52 M 86.51 M 15% 18% 7,919 Cr 1,64,904 Cr Spends* 5,721 Cr 1,33,125 Cr 38% 24% 17,184Cr# 2,58,115 Cr** Advances 13,463Cr 2,04,708 Cr 28% 31% Business Q4 FY24 Volumes 4.8 lacs 51.9 lacs ₹ 21,976 Cr ₹ 1
Slide 32: Q4 Figures as on 31st Mar'24
Diversified Distribution #Cities 473 As on 31st Mar’24 #DST 2,449 # Branches* 410 # Cobrand Partners 7 # Applications 29.1 Lacs Q4 Figures # New Customers 4.8 Lacs * No. of Bank Branches through which Credit Cards are sourced 32
Slide 33: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 5.04 5.19 4.81 0.63 4.61 0.59 0.59 0.57 4.24 4.41 0.55 0.48 Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Gross Advances Breakup (Cr.) Total Spends (Cr.) 15,734 16,852 17,975* 18,968
Slide 34: Credit Cards - Portfolio Trends contd.
Credit Cards - Portfolio Trends contd. Consumer Loans Retail Spend # Disbursed Count ('000) 30,959 32,591 47 57 27,207 28,944 27,690 28,043 46 42 48 49 13,618 14,417 15,077 12,656 12,575 12,754 983 1058 1025 886 892 906 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Retail Spend/Card Retail Spend/Active Card Q
Slide 35: 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 0.02 9.84 0.79 1.25 1.00 0.94 on 31st Mar 2024 16% 6% 7% 19% 32% 32% 19% 1.49 24% 68% 0.03 59% 9% 1.05 65% 1.00 43% 1.00 0.07 0.91 Salaried Self Employed TIER 1 TIER 2 TIER
Slide 36: 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% 6MOB$30+ Comparison with Industry 12.0% $30+ Comparison with Industry 16.0% 14.0% INDUSTRY 10.0% INDUSTRY 12.0% RBL 8.0% RBL 10.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% Refer note below 2.0% 0.0% 0.0% 10.0%
Slide 37: RBL Bank Business Segments and Credit Cards
RBL Bank Business Segments and Credit Cards Millennial Mass Mass Affluent Co-Branded Affluent Products Products Products Products Products BookMyShow Play PaisaBazaar Duet+ BankBazaar Save Max Pro Insignia Cookies Shoprite Platinum Maxima Plus Annual Fee: INR 500 Annual Fee: INR 1,499 Annual Fee: 1,
Slide 38: Co-Brand Partnership Update
Co- Brand Partnership Update Partner Vertical Partner Vertical NBFC Fintech Fintech Fintech Fintech Entertainment Fintech Fuel NBFC Parking Live for sourcing Co-Brand agreement executed; commercial launch expected in next 3 months 38
Slide 39: Go To Market Strategy Growing TAM
Launch of Commercial Card Program RBL Bank has introduced Commercial Cards Program in Q4FY24, designed to address the growing demand for digital Under penetrated Market Large Mid-Market Opportunity solutions and efficient expense management within corporate landscapes. USD 30-40 bn Indian Commercial
Slide 40: Microfinance Update
Microfinance Update
Slide 41: Microfinance Distribution Network
Microfinance Distribution Network (1) (2) (37) (6) 21 405 1,10,000 + (43) State and 2 UTs Districts Villages (121) (22) (94) (139) (2) (50) (22) (74) (82) (16) (22) (100) Microfinance Branches Network 1272 (77) RBL Finserve 742 210 952 Chhattisgarh (5) (22) (107) (3) Other BCs 233 87 320 (147) (27)
Slide 42: Portfolio Update
Portfolio Update Net Advances Disbursements 5,963 6,517 6,785 6,827 7,511 2,474 2,152 1,985 1,989 2,295 12% 12% 12% 12% 12% 11% 12% 14% 13% 12% 88% 88% 88% 88% 88% 89% 88% 86% 87% 88% Q4_FY23 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q4_FY23 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 RFL Other BCs RFL Other BCs Excludin
Slide 43: Portfolio Update
Portfolio Update Portfolio Contribution % Delinquency % 2.83% 67.58% 2.24% 2.13% 51.87% 50.34% 1.89% 1.56% 1.63% 40.54% 1.33% 30.72% 25.92% 0.98% 1.04% RBL PEER 1 INDUSTRY RBL PEER 1 INDUSTRY TOP 3 State TOP 5 State 30-180 60-180 90-180 Source : Equifax Data as of Dec’23 43
Slide 44: Branch Productivity
Branch Productivity Disbursement/Branch (crore) AUM/Branch (crore) 7.32 7.58 2.13 6.85 6.90 1.94 1.81 1.65 1.64 5.66 Q4_FY23 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Q4_FY23 Q1_FY24 Q2_FY24 Q3_FY24 Q4_FY24 Borrower/Branch Active Borrower count in lakhs 2629 2722 34.62 2482 2468 32.00 2230 27.60 29.77 25.94 Q
Slide 45: Digital Banking Update
Digital Banking Update
Slide 46: 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+ 25 L+ Leverage our strong API capabilities Multi-pronged delivery leveraging our partnership base Volume p.m on Payments; ~10 lakh Live •
Slide 47: Strong suite of platforms and applications catering to all customer segments
Strong suite of platforms and applications catering to all customer segments.. Digital user base Dual User growth by 15% in 200 + services Corporate FY 24; 80% across channels Banking App channel penetration Industry First Dedicated App Feature: >60% FDs being for Diplomatic booked digitally OTP on
Slide 48: Curated & Expansive Digital Interface
Curated & Expansive Digital Interface Source Digital Onboard Digital Transact Digital Service Phy-gital Monitor Digital Retail Internet Banking Corporate & MSME Banking Revamped, Simplified and Futuristic Revamped, Simplified and Futuristic Net Banking Service Online & Mobility Service Smart Trade &
Slide 49: CSR & Marketing Update
CSR & Marketing Update
Slide 50: Direct Implementation of CSR under UMEED 1000
Direct Implementation of CSR under UMEED 1000 • Direct implementation of CSR implemented under our flagship program for empowering girl child education, Umeed1000! • Partnered with 4 state government as well as local government bodies to identify over 2000 underprivileged girls who needed assistance
Slide 51: Dhanvantri – A CSR Initiative on Healthcare for those who serve
Dhanvantri – A CSR Initiative on Healthcare for those who serve • Free mobile healthcare vans for support and domestic services staff • Fully-equipped mobile healthcare vans providing complimentary health and eye checkup to house helps, security guards, drivers, housekeeping staff, blue-collar worke
Slide 52: Awards & Recognition
Awards & Recognition BEST BANK on Alay AWARDS é LX 2 if) 2 3 “o, mlssel: o* ASIAMONEY TAL AWE Indian Banks’ Association India’s Best Bank for CSR Asset Triple A Digital Awards 2024 19°" IBA Technology Awards 2023 Best Digital Upgrade Project * Best Technology Bank (Saartak Application) * Best Fintec
Slide 53: ESG Update
ESG Update
Slide 54: 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. Financial literacy: Policy stipulation for managing Bank’s • Bank runs flagship 'Saksham' program with NGO partners own
Slide 55: Annexures
Annexures
Slide 56: 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 57: 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 58: 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. Alok
Slide 59: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY24 Q4 FY23 Q3 FY24 FY 24 FY 23 Income Interest Earned 3,339 2,642 3,191 12,394 9,677 Interest Expended 1,739 1,285 1,646 6,351 4,678 Net Interest Income 1,600 1,357 1,546 6,043 4,998 Other Income 875 674 778 3,043 2,489 Total Income 2,475 2,031 2,323 9,086 7,
Slide 60: Balance Sheet
Balance Sheet Particulars March 2023 Dec 2023 March 2024 Liabilities Capital 600 603 605 Reserves and Surplus 12,977 13,789 14,191 Deposits 84,887 92,746 1,03,494 Borrowings 13,331 14,800 14,184 Other Liabilities 4,082 5,209 5,958 Total 115,876 1,27,146 1,38,432 Assets Cash & Balances with RBI 6,238
Slide 61: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q4 FY24 Q4 FY23 Q3 FY24 FY 24 FY 23 Income Interest Earned 3,339 2,643 3,191 12,394 9,677 Interest Expended 1,739 1,285 1,645 6,350 4,679 Net Interest Income 1,600 1,358 1,547 6,044 4,998 Other Income 876 684 777 3,060 2,507 Total Income 2,476 2,042 2
Slide 62: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars March 2023 Dec 2023 March 2024 Liabilities Capital 600 603 605 Reserves and Surplus 12,926 13,818 14,232 Deposits 84,875 92,683 1,03,470 Borrowings 13,332 14,801 14,185 Other Liabilities 4,074 5,211 5,961 Total 1,15,806 1,27,116 1,38,454 Assets Goodwill on Cons
Slide 63: Historical Performance
Historical Performance Particulars FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 FY23 FY24 Net Worth 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 12,254 12,006 12,996 14,206 Deposits 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 73,121 79,007 84,887 103,494 A
Slide 64: Thank you
Thank you apno ka bank | RBL Bank 64