RBL Bank Limited
7,037words
5turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
1,641 crore
6%
1,028 crore
4.36%
614 crore
67.8%
529 crore
201 crore
198 crore
79,216 crore
14%
Risks & concerns — 4 flagged
By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.
— Key ratios
Measured as Ratio of 6 MOB 30+ ($) / 6 MOB 30+ (#) * Source : TransUnion / CIBIL Significantly tighter risk filters – higher proportion of lower risk.
— Note
Deepak Kumar Chief Risk Officer Previously, Chief Technology Officer , National Stock Exchange (24) Previously, associated with State Bank of India and member of RBI committees (37) Figures in brackets are years of work experience in financial services 49 Professional and Experienced Leadership Team (Contd.) Mr.
— Branches
N Hari Prakash Head – Enterprise Risk Previously, associated with RBS Plc.
— Branches
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Speaking time
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Opening remarks
Steady operating performance
o Total Revenue grew to `1,641 crore o Net Interest Income grew 6% YOY to `1,028 crore; NIM was 4.36% o Other Income was down 6% YOY to `614 crore o Cost to Income was 67.8% o Operating profit was `529 crore o Net Profit was `201 crore vs. ` 198 crore for Q4FY22 • CASA Continues Strong Growth: o Total deposits grew 6% YOY to `79,216 crore o CASA grew 14% YOY to `28,526 crore. CASA ratio at 36.0% vs. 33.7% as at 30th June 2021 o Retail Deposits (as per LCR definition) grew 6% YOY to `31,415 crore • Advances Growth: o Advances book grew 7% YoY and was flat sequentially at `60,270 crore o Retail: Wholesale mix at 51:49 • Well capitalized with sound liquidity: o Overall capital adequacy (including Q1 FY23 profits) improved 70bps sequentially to 17.5%; Common Equity Tier 1 ratio at 16.0% o Average Liquidity Coverage Ratio at 149% • Asset quality: o Gross NPA ratio and Net NPA ratio improved sequentially to 4.08% and 1.16% vs. 4.40% and 1.34%, respectively as at 31st March 2022 o Provision C
Key Financials
` in crore Net Income Other Income Net Income Operating Profit Provisions (other than tax) Net profit (after tax) Total June 30, 2022 June 30, 2021 YoY 60,270 79,216 28,526 56,527 74,471 25,071 7% 6% 14% March 31, 2022 60,022 79,007 27,879 QoQ 0% 0% 2% 27,537 25,314 9% 22,274 24% ` in crore Advances (Net) Deposits CASA Investments (Net)
Key ratios
Particulars (in %) Net Interest Margin Cost to Income Return on Assets Return on Equity Gross NPA Net NPA PCR incl. Technical Write- offs Actual PCR Q1 FY23 4.36 67.8 0.75 6.28 4.08 1.16 85.3 72.5 Q1 FY22 4.36 52.8 (1.88) (14.51) 4.99 2.01 76.3 60.9 Q4 FY22 5.04 60.0 0.77 6.35 4.40 1.34 83.4 70.4 FY22 4.45 56.9 (0.07) (0.60) 4.40 1.34 83.4 70.4 Commenting on the performance, Mr. R Subramaniakumar, MD&CEO, RBL Bank said “We have started the new financial year with a satisfactory performance on all fronts. The Bank completed the issuance of US$100 million Tier 2 Notes in this quarter improving its capital adequacy further. Our focus would be to consolidate, leverage and optimize our existing platform so as to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more retail products”. RBL Bank Limited One World Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower
Note
• In the bureau, higher uptick seen in industry delinquency rates in Dec’20-Feb’21 period on account of a likely data submission issue by a large card issuer. If we remove that, the industry and RBL numbers are in line with each other. • Second instance of uptick seen in industry delinquency rates in Jul’21-Aug’21 period on account of delayed booking of Moratorium-driven delinquencies by a large card issuer Source : TransUnion / CIBIL 39 Credit Card Tighter risk measures on new acquisition – lowering risk in the portfolio Lower value @ risk for same number delinquency vs industry* Higher proportion of low risk clients 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1.92 1.66 1.50 1.32 1.37 1.51 1.50 2.03 1.81 1.81 1.59 1.26 0.92 0.90 0.89 0.62 0.71 1.24 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pre-Covid Post-Covid Industry RBL Increasing Risk Risk Category 1 Risk Category 2 Risk Category 3 Sharper exposure management across risk bands leading to lower value at risk for same number delinquenc
Branches
26 83 (67) 122 (23) 6 112 (60) 28 134 4 Figures in brackets refers to branches of RBL Finserve Micro-Banking Presence RBL Finserve Other BCs • Micro-Banking Branches : 1,225 • RBL Finserve Branches: 765 • Banking Outlets: 289 43 Micro-Banking Portfolio Concentration Top-3 & Top-5 State Concentration 50% 54% 37% 37% 61% 60% 45% 46% Mar'2021 June'2021 Mar'2022 June'2022 Top-up3 Top-5 Industry Comparison - Top3 & Top5 State Concentration 64% 64% 47% 46% 55% 37% RBL Peers Industry Top 3 states Top 5 states State Name % of Portfolio June’22 % of Portfolio Mar’22 Bihar Rajasthan Uttar Pradesh Tamil Nadu Karnataka Haryana Maharashtra West Bengal Gujarat Madhya Pradesh Odisha Jharkhand Punjab Kerala Uttarakhand Chhattisgarh Assam Tripura Puducherry Goa Himachal Pradesh Meghalaya Grand Total 19.4% 14.9% 11.3% 8.7% 6.1% 5.8% 5.2% 5.0% 5.0% 4.8% 3.9% 3.0% 3.0% 1.1% 0.6% 0.6% 0.6% 0.4% 0.3% 0.3% 0.1% 0.0% 100.0% 18.9% 14.7% 11.2% 9.2% 6.4% 5.7% 5.3% 4.9% 4.8% 4.7% 4.0% 3.1% 2.9% 1.2% 0.6% 0.6% 0.5
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