RBLBANKNSENovember 28, 2023

RBL Bank Limited

11,800words
10turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
November 28, 2023 BSE Limited 1st Floor, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001. Scrip Code: 540065 National Stock Exchange of India Limited 'E
70%
d customer base Customer centricity at fore engine 50+% CAGR growth in advances & liabilities; 70% PAT CAGR Top 5 credit card issuers in India; Branch expansion and granular deposit focus increa
16%
ncreased Launched new retail products; digital convergence across businesses Advances growth ~16%, back to growth momentum Maintain market positioning in credit cards and microfinance Establ
1.10%
ural presence across multiple products 5 ..And Our Aspirational Leap.. FY 23 FY 26 NNPA 1.10% PCR 69% CRAR 16.9 LCR : 126 % 5+ senior hires <30% attrition 1600+ touchpoints 20% share in
69%
ence across multiple products 5 ..And Our Aspirational Leap.. FY 23 FY 26 NNPA 1.10% PCR 69% CRAR 16.9 LCR : 126 % 5+ senior hires <30% attrition 1600+ touchpoints 20% share in increme
126 %
products 5 ..And Our Aspirational Leap.. FY 23 FY 26 NNPA 1.10% PCR 69% CRAR 16.9 LCR : 126 % 5+ senior hires <30% attrition 1600+ touchpoints 20% share in incremental biz Cost to Incom
30%
Our Aspirational Leap.. FY 23 FY 26 NNPA 1.10% PCR 69% CRAR 16.9 LCR : 126 % 5+ senior hires <30% attrition 1600+ touchpoints 20% share in incremental biz Cost to Income at 68% Asset quali
20%
6 NNPA 1.10% PCR 69% CRAR 16.9 LCR : 126 % 5+ senior hires <30% attrition 1600+ touchpoints 20% share in incremental biz Cost to Income at 68% Asset quality stress fully absorbed Well capit
68%
enior hires <30% attrition 1600+ touchpoints 20% share in incremental biz Cost to Income at 68% Asset quality stress fully absorbed Well capitalized to fund growth Attracting senior management
65%
New business showing green-shoots Operating investments largely made 20%+ CAGR in advances 60-65% Retail mix Customer count - 26 mn Building on existing “Core” Businesses and building scale in
0.8%
tech stack a Being tomorrow’s workforce relevant Employer for Digital first solutioning ROA 0.8% Improving Profitability QoQ Return Ratios 1.4-1.5% RoA/14-15% RoE 6 Our Vision For FY26 New p
1.5%
Employer for Digital first solutioning ROA 0.8% Improving Profitability QoQ Return Ratios 1.4-1.5% RoA/14-15% RoE 6 Our Vision For FY26 New products & channels driving diversifcation of busine
Guidance — 2 items
Branch
opening
“Aim to be a leader in customer engagement in Cards Industry…..”
Social Media
opening
“Balance portfolio mix, with 5-10% towards expenses H E 25% 30% LO 35% • • Geographical Expansion Continue in current locations until projects attain sustainability Start scoping projects in Northeast & Govt’s Priority Districts/ Niti Aayog’s recommendation RBL Bank Branch mapped with project location Enhance Employee involvement & Volunteering matching business needs Deeper granularity in beneficiary groups Continue with current benecificiary segmentation i.e., urban and rural across H.E.LO.”
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Risks & concerns — 4 flagged
Technology – Agile technology & API based integration to make loan journeys simpler & faster Nuanced risk management – Capitalizing on high touch customer connect to minimize credit risk.
— Branch
Strengthen the core by opting new age business models Sophisticated solutioning Playing in the niche through evolving business offerings TRADE ECOSPACE Cash management Term & Working capital Supply Chain Forex & risk mgtm.
— Social Media
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..
— Social Media
Policy stipulation for managing Bank’s own E&S footprint, E&S footprint and impact of lending, investments and adopting financial Inclusion and literacy Bank rated 60+ score (out of 100) by CRISIL and REFINITIV in ESG performance, disclosures and quantitative progress.
— Social Media
Speaking time
Social Media
3
Propensity to pay
1
Clients
1
Portfolio
1
Branch
1
Luxury Retail Stores
1
Fintech Applications
1
Ecommerce Website
1
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Opening remarks
Propensity to pay
• Self Cure • Low Risk • Medium Risk • High Risk Analytical Model FY26 ▪ Will be present in 14 states with 700+ footprint ▪ Target to achieve 7% market share of New Targeted approach helps in tractor covered industry ▪ Aim to reach top 5 among all financiers ▪ Penetrate 35% used tractor contribution ▪ Will target to achieve 2X book growth • Better Efficiency / Resolution Rates • Better Customer Experience • Cost Saves Efficiency and Cost Reduction 26 Impact of New Product Launches Higher Profitability leading to higher RoA Small/Micro LAP Affordable HL Two-Wheeler Loan Used Car Loan Loan Against Gold Education Loan Business Banking Digital Journey ensuring faster processing time FY23 FY26 Retail Disbursals 6,000 cr 24,000 cr 4x Retail Book 12,900 cr 40,000 cr 3x No of Products 8 16 Branches 300 1500 Customer Base 0.14 mn 1 mn New Products to fuel retail growth 2x 5x 7x 27 Growing microfinance business 03 28 Microfinance Distribution Network States and UTs Districts 23 States 405 Villag
Portfolio
6,785 Cr as of Sept’23; 88% through RFL RBL Finserve – 821 branches (Exclusive or Dominant) Other BCs (with Finserve)
Branch
1206 BC Branches 882 RFL branches 60% Outreach – villages & towns Pan India 2% Market Share of Pan India Microfinance book 296 Banking Outlets Pan India *All nos. as of 30 Sep’ 2023 29 Performance Trend (FY 2024 – Disbursement achieved till Q2’FY24) Disbursement v/s POS ➢ Conscious slow down due external factors (COVID) during FY 21 7132 6469 6785 5963 5038 4852 3574 1483 8 7 5 1 , 0 0 2 2 , 2169 5 0 6 3 , 0 9 7 4 , 6 9 8 5 , 8 7 7 4 5 2 7 3 4 7 5 3 8 1 (FY 2024 – Disbursement 5 4 achieved till Q1’FY24) 2016 2017 2018 2019 2020 2021 2022 2023 June'23 Sept 23 Disb (In Cr) POS (In Cr) Active Loan Client Base (In Lakhs) 33.23 30.39 29.93 25.94 27.60 24.99 18.62 13.62 9.61 – FY22. ➢ Ready to capitalize on current macro economic growth phase ➢ Started FY24 with strong disbursement momentum ➢ Focus is to increase productive branch outlets while expanding branch presence Total branches by end of FY26 1600+ B R A N C H E S 1151 1218 1251 1239 1206 905 727 540 373 FY16 FY17 FY18 FY19 FY20 FY21
Luxury Retail Stores
Quorum, Golf/Race clubs Aditya Birla WM NASSCOM Lodha Group Gucci/BMW stores HNI/NRI Banking JLF/Indian Derby
Fintech Applications
• Corporate Parks: Instagram Influencer/Linkedin Amazon/Dunzo Digital Advertising For existing Bank customers MoneyTap CyberHub, Hiranandani • Malls/Hypermarts: • Bank’s Branches: • Banks existing customers: • Corporate Parks: •
Social Media
• Online Marketplaces: • Mass Events: Ambience/Dmart Bank Physical Branch CASA/Loan CyberHub Facebook/Youtube Amazon/Flipkart Music fests/ Flea Markets • Metal card • Exclusive Memberships • Dedicated Card Assistant • Golf & Travel Benefits • Luxury Shopping offers • Dining & Hotel privileges • Movie offers • OTT Subscriptions • Shopping vouchers • Instant Cashbacks • An all-App experience • Online shopping rewards • Movie offers • Add-on Card • Lifetime Free membership fee • Rewards points • • Daily shopping, commute, Low Interest Rate grocery offers • Banking Relationship • HNI Trained Direct Agents in events/clubs • Dealings with Agencies, Stores, Organizers etc. • Bank Website/Digital App • Social Media Platforms • Affiliate Marketing • Chatbots • Direct Selling Team • Bank Website • Storefront Channel • Bank Branch Channels • Cross-sell to Bank customers Insignia Fee: Lifetime Free Monthly Treats Fee: Rs. 75 per month Cookies Fee: Rs. 100 per month Platinum Delight Fee: Rs. 1000 S
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