RBL Bank Limited Research Report

Q4 FY 2022 Review

RBL Bank Limited reported net revenue of ₹2,20,076 Lakh for the quarter ended March 31, 2022, compared to ₹2,05,754 lakhs for March 31, 2021. Profit After Tax was ₹16,477 lakhs for the quarter ended March 31, 2022, as compared to ₹7,574 lakhs during the corresponding quarter of the previous year, respectively.

RBL Bank Limited - Investment Summary

RBL Bank Limited - Overview

• RBL Bank is one of India’s leading private sector banks with an expanding presence across the country.

• As of March 31, 2022, the bank had 502 branches, 260 banking outlets, 1418 business correspondents (including banking outlets, and 414 ATMs.

• Mr. R Subramaniakumar is appointed as the new managing director & CEO of the bank for a period of three years with effect from June 23, 2022, after the Step-down of Mr. Vishwavir Ahuja.

RBL Bank Limited - Quarterly Summary

Business

• The Bank was incorporated in 1943 as ‘Ratnakar Bank Limited.

• It received the status as a scheduled commercial bank in 1959.

• The Bank underwent a management change in FY 2011, following which its corporate office was shifted to Mumbai. Apart from the management, the bank’s shareholding changed in FY 2011 with equity infusion from various private equity funds.

• The name of the bank was changed from ‘Ratnakar Bank Limited’ to ‘RBL Bank Limited’ in 2014.

• The bank was listed on the BSE and NSE with the initial public offering (IPO) in August 2016.

• The Bank acquired a 100% stake in Swadhar Finserve Pvt Limited in 2018, where it had holding of 60.49% earlier.

• RBL Bank’s operation span across various business segments comprising:

  • Wholesale Banking Comprising:

    • Corporate and Institutional Banking (C&IB):

      • The C&IB business segment offers extensive services to enterprises and corporate entities, especially large-size corporations (i.e., companies with over ₹1,500 crores annual turnover).

      • Sub-segments within C&IB have sectoral coverage and include: a) Financial Institutions, b) Governments, c) Multinational Clients, and d) Corporate Industry.

    • Commercial Banking (CB):

      • CB segment provides services to small & medium enterprises with turnover ranging from ₹50 to ₹250 crore and mid-market enterprises with turnover ranging from ₹250 to ₹1500 crore.

      • The predominant objective of this segment is to be ‘Bank of Choice’ for the transaction banking requirements of its clients by offering cash, trade, and forex services.

  • Retail Banking Comprising:

    • Banking and Business Banking (BBB):

      • BBB provides a complete suite of products across the entire spectrum from retail customers, small investor owners, and NRIs to retail institutions supported by multi-channel electronic banking systems, including mobile banking, internet banking, phone banking, WhatsApp banking, Chat pay, and ATMs.

    • Retail Assets:

      • MSME Business Lending:

        • The MSME business is an emerging business in the bank and is aligned to the strategic goal of satisfying the credit needs of micro and small enterprises and reaching out the last mile through a business correspondent network.

      • Housing Comprising both Affordable Housing and General Housing Business:

        • The bank started with the objective of offering affordable housing loans as part of the “Credit Linked Subsidy Scheme (CLSS)” central sector scheme under Pradhan Mantri Awas Yojana (Urban) (PMAY-U), a flagship mission of the government of India implemented by the Ministry of Housing and Urban Affairs (MOHUA) to promote housing for all.

      • Credit Cards:

        • RBL Bank’s credit card business is currently the 5th largest in the country, and the bank is the fastest-growing credit card issuer.

      • Retail Lending:

        • The bank’s retail lending arm provides financial services to small businesses and individuals, offering products such as loans against property, business loans, working capital cash credits/overdrafts, non-fund based and trade facilities aside from salaried personal loans.

      • Treasury and Financial Markets:

        • The Bank’s treasury operation includes interfacing with the financial markets and performing broad functions like managing statutory reserves, day-to-day fund management and asset-liability management, investment and trading activities, and interest rate and exchange.

• Out of the total revenue, 30% has been generated from Treasury operations, 21% from Corporate/wholesale Banking, 48% from Retail Banking, and 2% from others in FY 2022 compared to 32%, 20%, 46%, and 2% in FY 2021, respectively.

RBL Bank Limited - Revenue Trend

Topline and Bottomline trend (lakhs)

Ratio Analysis

RBL Bank Limited - Financial Overview

Profit and Loss Statement (₹ in lakhs)