Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY23 Earnings Presentation
62 slides from Rbl Bank's earnings presentation, Jan 20, 2023
Slide 1: Exchange filing cover letter
January 20, 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: Press release: results for quarter ended 31 December 2022
RBL Bank Limited One World Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 PRESS RELEASE RBL BANK ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2022 The Board of Directors of RBL Bank Limited approved the unaudited financial results f
Slide 3: Key Financials and Key Ratios
RBL Bank Limited One World Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Key Financials: ` in crore Q3 FY23 Q3 FY22 YoY Q2 FY23 QoQ 9M FY23 9M FY22 Net Interest 1,148 1,010 14% 1,064 8% 3,240 2,895 Income Other Income 618 583 6% 583 6% 1,815 1,829 Net Total 1,
Slide 4: About RBL Bank
RBL Bank Limited One World Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 About RBL Bank RBL Bank is one of India’s leading private sector banks with an expanding presence across the country. The Bank offers specialized services under five business verticals na
Slide 5: Investor Presentation Q3 FY23
Investor Presentation Q3 FY 23 Jan 20, 2023 1
Slide 6: 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 7: 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 8: Key Drivers of Business Performance in Q3FY23
Key Drivers of Business Performance in Q3FY23 Well Diversified Advances – Growth of 15% YoY and 6% sequentially Strong Liability Franchise – CASA at 36.6%; Retail (as per LCR) at 42.5% of total deposits Growing Profitability – PAT at Rs. 209 crore up 34% YoY Stable Asset Quality with Prudent Provisi
Slide 9: RBL Bank Q3 FY23 Snapshot
RBL Bank Q3 FY23 Snapshot Improving Financial Metrics Diversified Advances with Growing Granular Deposits Growing Retail ▪Net Profit grew 34% YoY to Rs. ▪ Total Advances grew 15% YoY & 6% 209 crore ▪ Total Deposits grew 11% YoY to QoQ to Rs. 66,684 crore ▪NIM at 4.7%, improved by 19bps ▪ Retail Adva
Slide 10: Q3 FY23 Key Financial Highlights
Q3 FY23 Key Financial Highlights Advances Rs. 66,684 crore Retail Advances Rs. Deposits Rs. 81,746 crore* CASA Rs. 29,948 crore Healthy 34,997 crore Balance 15% YoY 6% QoQ 13% YoY 7% QoQ 11% YoY 3% QoQ 18% YoY 4% QoQ Sheet NII Rs. 1,148 crore Core Fee Income Rs. 590 Operating Profits Rs. 567 Profits
Slide 11: Well Diversified Advances
Well Diversified Advances
Slide 12: Well Diversified Advances
Well Diversified Advances Advances by Segment (%) • 83.3% of Wholesale Exposure is to A- or better rated customers 47.5% • Wholesale Exposure is well diversified across 52.5% industries with top 10 industries accounting for only 29.2% of total exposure • Bank amongst the largest Credit Card issuers
Slide 13: Advances Mix; Healthy Advances Growth
Advances Mix; Healthy Advances Growth Yield Proportio Dec 31,2022 Dec 31,2021 YoY Sep 30,2022 QoQ 9M FY23 n C&IB 24,214 20,901 16% 23,119 5% 7.1% CB 7,493 6,340 18% 7,137 5% (6.5%) 48% Wholesale 31,707 27,241 16% 30,256 5% Business Loans 6,882 8,676 (21%) 7,350 (6%) Credit Cards 15,471 13,189 17% 14
Slide 14: Borrower's External rating Profile
Borrower’s External rating Profile Dec 31, 2021 Sep 30, 2022 Dec 31, 2022 58,734 59,943 63,323 11,413 19.0% 11,617 18.3% 14,754 25.1% A- or A- or A- or better 21,238 35.4% better 24,971 39.4% better 16,003 27.2% 80.3% 82.9% 83.3% 16,435 28.0% 17,042 16,187 28.4% 25.6% 8,718 7,980 8,426 14.8% 14.8%**
Slide 15: 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) 3,690 99:1 4.4% Construction 3,205 31:69 3.8% Power 2,980 60:40 3.5% HFC 2,677 100:0 3.2% Retail/ Distribution 2,658 74:26 3.1% Engineering 2,
Slide 16: Strong Liability Franchise
Strong Liability Franchise
Slide 17: CASA & Total Deposits
CASA & Total Deposits 18% YoY growth in CASA ; Total deposits grew by 11% YoY CASA : 34.4% CASA : 36.2% CASA : 36.6% CASA : 25,318 CASA : 28,718 CASA : 29,948 79,404 81,746 73,639 15.7% 14.8% 14.7% 21.4% 20.9% 19.7% 65.6% 63.8% 63.4% Dec 31, 2021 Sep 30, 2022 Dec 31, 2022 Term Deposits Savings Accou
Slide 18: 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% 11.96% 154% 134% 155% 146% 138% 149% 156% 144% 5.54% 5.27% 5.10% 4.82% 4.81% 4.87% 5.19% 5.55% 5.45% 5.20% 5.01% 4.76% 4.75% 4.84% 5.14% 5.47% 90% 100% 100% 100% 100% 100% 100% 100% March
Slide 19: Stable Financial Metrics
Stable Financial Metrics
Slide 20: Improving Profitability QoQ
Improving Profitability QoQ Q3 Q3 Q2 9M 9M Parameter YoY QoQ FY23 FY22 FY23 FY23 FY22 Net Interest Income 1,148 1,010 14% 1,064 8% 3,240 2,895 Other Income 618 583 6% 583 6% 1,815 1,829 Net Total Income 1,767 1,593 11% 1,648 7% 5,056 4,725 Operating Profit 567 631 (10%) 512 11% 1,609 2,088 Provision
Slide 21: Core Fee Income increasing QoQ
Core Fee Income increasing QoQ Other Income Core Fee Income Breakup 583 583 618 1,829 1,815 558 544 590 1,558 1,665 4% 4% 4% 4% 4% 22% 22% 25% 23% 22% 3% 3% 2% 2% 2% 27% 31% 31% 96% 93% 95% 85% 92% 32% 32% 32% 29% 29% 30% 27% 96% 93% 15% 11% 12% 11% 4% 7% 5% 8% 9% 10% Q3 FY22 Q2 FY23 Q3 FY23 9M FY22
Slide 22: 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) 963 1,135 1,199 2,637 3,447 73* 39* 39* 444* 121* 429 68 4% 13% 12% 25% 11% 4% 4% 4% 15% 10% 9% 10% 4% 14% 13% 11% 12% 41 5% 11% 12% 12% 35 10% 11% 12% 11% 12% 10% 2
Slide 23: Asset Quality
Asset Quality
Slide 24: Asset Quality Snapshot
Asset Quality Snapshot Quarter Ended Dec 31, 2021 March 31, 2022 June 30, 2022 Sep 30, 2022 Dec 31, 2022 Movement of Gross NPAs Opening Balance 3,131 2,902 2,728 2,537 2,457 (+) Additions during the period 766 619 653 812 608 (-) Upgrade 181 105 192 149 99 (-) Recoveries 271 222 188 164 126 (-) Writ
Slide 25: Asset Quality – NPA Position
Asset Quality – NPA Position Gross NPA by business segment Business segment Dec 31, 2021 March 31, 2022 June 30, 2022 Sep 30, 2022 Dec 31, 2022 Wholesale 1,010 1,044 1,087 1,183 1,172 Retail 1,892 1,684 1,450 1,274 1,297 Business Loans 353 378 377 426 473 Credit Cards 388 325 328 348 345 Micro-Banki
Slide 26: Slippages, Loan Provisions & Restructured Advances
Slippages, Loan Provisions & Restructured Advances Slippages Breakup Loan Provisions Breakup Particulars Net Of which Particulars As of 31st Dec For Q3 FY23 Slippages* Restructured 2022 NPA Specific Provision (towards Wholesale (7) - 1,679 385 PCR) Restructured Provision (outside Credit Card 199 5 1
Slide 27: Healthy Capital Adequacy
Healthy Capital Adequacy
Slide 28: Capital Adequacy – Well Capitalized
Capital Adequacy – Well Capitalized Particulars Dec 31, 2021 Sep 30, 2022 Dec 31, 2022 Tier 1 Capital Funds* 12,060 12,710 12,915 Tier 2 Capital Funds 623 1,216 1,242 Total Capital Funds* 12,683 13,926 14,158 Total RWA 76,510 80,187 83,353 Tier 1 CRAR* 15.8% 15.9% 15.5% Total CRAR* 16.6% 17.4% 17.0%
Slide 29: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.7 0.1 Basel III compliant Tier II bonds ICRA AA- (Stable) 7.7 (Re-affirmed dated Sep 9, 2022) 31.0 CARE AA- (Stable) (Re-affirmed dated Oct 3, 26.5 2022) Certificate of Deposits ICRA A1+ (Re-aff
Slide 30: Growing Distribution Network
Growing Distribution Network
Slide 31: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 4 10.66 11.15 11.30 11.77 12.00 9.63 9.83 9.97 GIFT 56 2 city 14 New Delhi March June 30, Sep 30, Dec 31, March June 30, Sep 30, Dec 31, branch 31, 2021 2021 2021 2021 31, 2022 2022 2022 2022 16 24 Channel Breakup 1
Slide 32: Digital Initiatives
Digital Initiatives
Slide 33: Deeper Connect by enhancing the value proposition in the payments landscape
Deeper Connect by enhancing the value proposition in the payments landscape… 1 Enabler to provide Seamless Digital Experience to Customers Digital Onboarding • A central unit focusing on building Digital Journeys for Stack existing and new Products of the Bank Digital Channels • Build common platfor
Slide 34: Digital Banking Framework
Digital Banking Framework Vision to build and offer a unified digital platform focussing on B2C, B2B, B2BC platform ABACUS 2.0 Channels Payments Liabilities & TPP Retail Assets & Credit Sales Support Product & Project IB, MB, DB platform Scalable API driven Digital product Card & Digital Service Sup
Slide 35: Customer Centric Digital Approach
Customer Centric Digital Approach Customer Individual/Corporate Intuitive Login Layer `` Identify basis login Retail/Insignia/Diplomatic/Corporate Retail Liability Insignia Diplomat Corporate Retail Asset/FI Credit Card Merchant Customer Journey Business Journey Product Journey ETB NTB/ETB NTB/ETB P
Slide 36: Our Continual market standing in the digital space
Our Continual market standing in the digital space… QOQ Increase in Acquiring Txn Value~ 11.05% For period Oct-22 to Dec-22 58.35 L 18,600 6.8 CR Crore Overall BAAS Total Transaction Total Transaction Customers* Volume Value (in nos.) * Overall number of Payment Aggregator, Wallet holders, AEPS and
Slide 37: Credit Card Update
Credit Card Update
Slide 38: Growth & Market Share
Growth & Market Share Source RBI Data Nov’21 Nov’22 RBL Industry RBL Industry 4.2 M 80.7 M CIF 3.4 M 67.9 M 24% 19% 5,008 Cr 1,15,161 Cr Spends 3,863 Cr 89,493 Cr 30% 29% 15,693Cr 1,73,424 Cr Advances 13,520 Cr 1,38,688 Cr 16% 25% Market Share – Cards (#) Market Share - Spends Market Share - Advance
Slide 39: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Cards in Force (Million) Acquisition (Million) 0.60 0.58 4.10 4.17 4.23 4.24 0.52 3.91 3.68 0.45 3.46 0.43 0.20 0.20 0.18 Q3'22 Q4'22 Q1'23 Q2'23 Oct'22 Nov'22 Dec'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Oct'22 Nov'22 Dec'22 Gross Advances Breakup (Cr.)* Total Spends (Cr.) 1
Slide 40: Credit Cards - Portfolio Trends
Credit Cards - Portfolio Trends Retail Spend # Consumer Loans ('000) 929 855 841 861 27,484 27,207 24,963 25,228 24,852 25,588 25,596 753 11,809 11,836 11,645 12,908 11,729 12,656 11,136 327 311 291 Q3'22 Q4'22 Q1'23 Q2'23 Oct'22 Nov'22 Dec'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Oct'22 Nov'22 Dec'22 Retai
Slide 41: Credit Cards – Customer Segment insights
Credit Cards – Customer Segment insights Salaried : Self Employed (SE) mix City Tier Mix Carded Mix Age Group Mix 1.45 1.53 0.78 1.14 0.99 0.83 3% Cards-in- Force As on 31st Dec 14% 20% 18% 31% 34% 69% 56% 83% 10% 2022 0.92 1.08 62% 1.03 1.00 0.94 Salaried Self Employed TIER 1 TIER 2 TIER 3 Carded B
Slide 42: Retail Spends Insights
Retail Spends Insights S P E ND# ACRO S S CATE G O RY Daily Discretionary Travel 140% 12,442 Cr 130% 692 Cr 120% 2,662 Cr 110% 100% 9,256 Cr 540 Cr 90% 2,276 Cr 80% 70% 60% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Daily 100% 105% 110% 120% 134% Discretionary 100% 88% 102% 102% 117% Travel 100% 93% 119% 12
Slide 43: 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 Refer note below 16.0% 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 44: 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 1.99 40% 2.5 2.03 1.92 1.81 1.59 1.86 2.0 1.66 1.51 1.50 30% 1.37 1.5 2
Slide 45: Recent Developments
Recent Developments Brand new Channel Partner & Card launched Launch of 2 new Credit Cards in partnership with our current E-commerce & Fintech partners In association with In association with LazyPay In association with BookMyShow PaisaBazaar RBL Bank LazyPay The newly-launched Available to custome
Slide 46: Micro-Banking Update
Micro-Banking Update
Slide 47: Micro-Banking Distribution Network
Micro-Banking Distribution Network (44) Active BC Partners: 3 6 (43) State & District Presence: (84) 103 (60) (26) • 21 States and 2 Union Territory (118) (2) • 407 Districts 59 (52) 92 16 (40) (49) (72) 25 • 60000+ villages covered (83) Branches : 107 Micro-Banking Presence (16) • Micro-Banking Bra
Slide 48: Portfolio growth driven by new customers, ticket size growth moderate
Portfolio growth driven by new customers, ticket size growth moderate Net Advances 3.27 Million active loan accounts In Rs. crores In crores 10% Growth Quaterly-Disbursement-FY-23 CBS Migration 1,879 7,132 6,445 1,457 MF Regulations – BRE and BCMS 4,852 5,021 development 5,028 4,584 23 Mar 31,2019 M
Slide 49: Portfolio Concentration & Delinquency Trend
Portfolio Concentration &Delinquency Trend Portfolio-Composition 10% 90% New-Book-90+ Less than 1% New Book- Post COVID Old Book-Pre-COVID PAR-Trend-RBL-VS-Industry New-Book-90+ 6.79% 5.60% 5.45% 4.94% 4.47% 3.97% 3.70% 3.83% 3.12% 2.95% 2.54% 2.27% 0.87% 0.76% 0.39% 0.27% 0.34% 0.38% RBL-Sept-22 RB
Slide 50: Micro banking - Portfolio Concentration
Micro banking - Portfolio Concentration State Name % of Portfolio % of Portfolio % of % of Portfolio Top-3 & Top-5 Portfolio Contribution Dec’22 Mar’22 Portfolio Mar’20 66% Mar’21 61% 53% 54% Bihar 25.2% 18.9% 12.8% 14.7% 45% Uttar Pradesh 14.6% 11.2% 7.8% 3.4% 37% Rajasthan 14.1% 14.7% 10.9% 7.3% O
Slide 51: Experienced Board and Leadership Team
Experienced Board and Leadership Team
Slide 52: 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 53: 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 54: 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 55: 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 56: Annexures
Annexures
Slide 57: Balance Sheet
Balance Sheet Particulars Dec 31, 2022 Sep 30, 2022 Dec 31, 2021 Liabilities Capital 600 600 599 Reserves and Surplus 12,695 12,470 11,814 Deposits 81,746 79,404 73,639 Borrowings 10,623 10,776 11,974 Other Liabilities 3,891 4,151 3,877 Total 109,555 107,402 101,903 Assets Cash & Balances with RBI 5
Slide 58: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY23 Q3 FY22 Q2 FY23 9M FY23 9M FY22 Income Interest Earned 2,369 2,044 2,176 6,634 6,045 Interest Expended 1,220 1,034 1,111 3,393 3,149 Net Interest Income 1,148 1,010 1,064 3,240 2,895 Other Income 618 583 583 1,815 1,829 Total Income 1,767 1,593 1,648 5,056
Slide 59: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Dec 31, 2022 Sep 30, 2022 Dec 31, 2021 Liabilities Capital 600 600 599 Reserves and Surplus 12,617 12,376 11,759 Deposits 81,745 79,404 73,637 Borrowings 10,628 10,781 11,975 Other Liabilities 3,913 4,194 3,899 Total 109,502 107,355 101,870 Assets Goodwill on C
Slide 60: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3 FY23 Q3 FY22 Q2 FY23 9M FY23 9M FY22 Income Interest Earned 2,467 2,107 2,263 6,933 6,244 Interest Expended 1,221 1,034 1,111 3,394 3,149 Net Interest Income 1,247 1,073 1,152 3,540 3,096 Other Income 624 584 585 1,823 1,839 Total Income 1,871 1,65
Slide 61: Historical Performance
Historical Performance FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 9M 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 12,708* 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 81,746
Slide 62: Thank you
Thank you apno ka bank | RBL Bank 58