RBL Bank Limited

96 Pages·2016·2.82 MB·English

73rd Annual Report 2015-16
Forward-looking statement
In this Annual Report, we have disclosed forward-looking information to enable CORPORATE INFORMATION
investors to comprehend our prospects and take investment decisions. This
report and other statements - written and oral – that we periodically make
contain forward-looking statements that set out anticipated results based on
the management’s plans and assumptions. We have tried wherever possible
RBL Bank Limited
to identify such statements by using words, such as ‘anticipate’, ‘estimate’,
‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance (Formerly: The Ratnakar Bank Limited)
in connection with any discussion of future performance. We cannot guarantee
that these forward-looking statements will be realised, although we believe
we have been prudent in our assumptions. The achievements of results Registered Office
are subject to risks, uncertainties and even inaccurate assumptions. Should
1st Lane, Shahupuri,
known or unknown risks or uncertainties materialise, or should underlying
assumptions prove inaccurate, actual results could vary materially from those Kolhapur - 416 001,
anticipated, estimated, or projected. Readers should keep this in mind. We
Maharashtra, India.
undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise. Phone: [phone]
Fax: [phone]
E-mail: [email protected]
Corporate Office
One Indiabulls Centre, Tower 2B , 6th Floor,
841, Senapati Bapat Marg,
WHAT YOU WILL Lower Parel (W),
Mumbai 400013, India.
FIND INSIDE Phone: [phone]
Fax: [phone]
Corporate Overview PG.NO 01/32 Corporate Identity Number (CIN)
U65191PN1943PLC007308
02 Our Story
04 Vision, Mission and Values
Statutory Auditors
06 Creating Consistent Value
S. R. BATLIBOI & CO. LLP,
08 Financial and Operational Highlights
Chartered Accountants,
10 Message from the Managing Director & CEO
14th Floor, The Ruby, 29,
13 Board of Directors
Senapati Bapat Marg,
14 Senior Management Team
Dadar (W), Mumbai - 400 028
16 Apno Ka Bank Theme
Maharashtra, India.
24 RBL Bank in Spotlight
30 Products and Services
Key Managerial Personnel
32 10-Year Financial Highlights
Mr. Vishwavir Ahuja, Managing Director & CEO
Mr. Naresh Karia, Chief Financial Officer
Mr. Vinay Tripathi, Company Secretary
Statutory Reports PG.NO 34/182
Registrar & Transfer Agent
34 Management Discussion and Analysis
Link Intime India Pvt. Ltd.,
54 Directors’ Report
C – 13, Pannalal Silk Mill Compound,
84 Independent Auditor’s Report
L. B. S. Marg, Bhandup,
88 Balance Sheet
Mumbai - 400 078.
89 Statement of Profit and Loss
Maharashtra, India.
90 Cash Flow Statement
Phone: [phone],
91 Schedules
E-mail: [email protected]
137 Basel III Disclosures
179 List of Branch Offices
View this annual report online
www.rblbank.com
CORPORATE OVERVIEW OUR STORY
OUR STORY
Having started in AND WE WILL MAGNIFY
THE CHALLENGE OF
THERE ARE THREE KEY
August 1943 with an CONSISTENT SUPERIOR THE IMPACT BY DOING
BEHAVIOURS THAT WE
DELIVERY WILL INCREASE
objective of meeting WILL OBSESSIVELY FOCUS ALL THESE THREE
MANIFOLD AS THREE MAJOR
ON TO GET US THERE:
FORCES RESHAPE HOW WE
the needs of low and THINGS CONSISTENTLY
GO FORWARD FROM HERE:
middle-class traders, AND LIVE UP TO OUR
EMPATHY
small business Our challenges and expectations are very similar to what BRAND PROMISE OF
OUR OWN ASPIRATIONS OF our customers face. Therefore, we will continue to focus
owners and farmers THE FUTURE on fully understanding our customers, feel the same BEING AN
pain and deal with them the way we would want to be
Growing from 87 branches in 2010 to 197 in 2016 has meant
we have come a dealt with.
growing our team size from around 704 to 3,872 employees.
While the passion to serve has always been very high, we
long way.
will continue to invest in processes, systems and people to
FLEXIBILITY
ensure continued consistency of customer experience.
Banking has become complex with myriad rules and
procedures. We will continue to walk the extra mile to
GROWTH IN COMPETITION AND simplify banking for our customers.
There was a time when most of OPTIONS FOR CUSTOMERS
our business came from a small Just in the last two years we have seen grant of 23 new
KNOWLEDGE & EXPERTISE
geography covering parts of banking licenses by RBI, new offerings like payment banks
Maharashtra and Karnataka. Now and explosion of internet and mobile banking solutions. The We will continue to provide the best possible solution to
with 197 branches in 16 states/ plethora of options have made customers more demanding. our customers using our knowledge and expertise.
union territories and with over 1.9 Along with being ‘high touch’ we will also need to be
million customers, we believe we are ‘high tech.’
a force to be reckoned with.
This transformation was made
THE WORLD BECOMING EVERYDAY.
possible through people power. A
MORE DIGITAL
strong leadership team was put in
place and the entire army of high Customers expect services from a bank to be as smooth and
energy and passionate people of the as pleasant as that in a top rated hotel or a luxury apparel
erstwhile Ratnakar Bank worked store. The ease of use, flexibility and user interface of our
smart phone is now a standard expectation from every
together to turn a dream into
interaction.
a reality.
And, we will have to continue to keep winning in this new
But things have started changing
environment. With the people we have, we know we will.
fast. Very fast. And, we need to
continue to consistently deliver We will win this by continuously upgrading our delivery
channels with modern technology and proactively partnering
the quality of experience that our
with innovative fintech companies to efficiently service our
customers have come to expect
growing customer base.
from us.
2 APNO KA BANK Annual Report 2015-16 3
CORPORATE OVERVIEW VISION, MISSION AND VALUES
TRUST AND RESPECT OF
OUR VISION
OUR STAKEHOLDERS
To engage and ensure that all our
To be a ‘Bank of Choice’
stakeholder commitments are
by creating and nurturing fulfilled, while working as a team
enduring relationships
through trust and respect of
our customers, employees CREATING AND NURTURING
ENDURING RELATIONSHIPS
and partners
BANK OF CHOICE To create and build lasting partnerships
To be the preferred choice with all our customers based on full
for the banking needs of our disclosure and transparency
customers
EXCELLENCE
To act in a manner that
earns the trust and
admiration of others ENTREPRENEURIAL
To be enterprising and take
OUR ownership of our actions
RESPECT
MISSION To be sensitive and
responsible for
what we say and do
CUSTOMERS AT THE HEART
To engage and understand customer
needs, provide best-in-class products COMMUNITY AS THE CAUSE
and services, be responsive and quick To deliver robust and cost-effective PROFESSIONALISM
OUR VALUES
in resolving queries - resulting in true banking services that promote
To conduct our duties
customer delight and peace of mind financial inclusion, catalyse growth with good judgement ‘PREET’ TEAMWORK
and reduce social inequalities To be successful
and in good faith
together
EMPLOYEES AS THE PILLAR
To provide an enabling work
culture, where career aspirations
SHAREHOLDER VALUE AS THE
can be realised through consistent
FOCUS
performance and demonstration of
the Bank’s core values and beliefs To demonstrate high corporate
governance standards that protects and
balances stakeholder interests in the
journey to achieving short and long-term
business goals
4 APNO KA BANK Annual Report 2015-16 5
CORPORATE OVERVIEW CREATING CONSISTENT VALUE
CREATING CONSISTENT VALUE
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Upgraded the CBS to Finacle Bestowed with the honour of Recognised as India’s Best Bank Recognised as a Global Growth Successfully raised ` 488 crore as
(managed by Infosys), which holds being India’s Best Bank (Growth) (Growth) in the mid-sized banks Company by the World Economic pre-IPO preferential placement
market leadership in this segment in the mid-sized banks segment segment by Business Today and Forum from global and domestic investors
by Business Today and KPMG, and KPMG for the year 2013 (second- augmenting our Tier 1 capital to meet
Made significant investments also ranked 5th overall for the year year in a row) Awarded India’s Best Bank the future capital needs of the Bank
in IT infrastructure, to integrate (Growth) in the mid-sized bank
2012
operations and enhance security Completed third round of capital segment by Business Today and Launched the first dedicated startup
standards Awarded as winner of the Best Core infusion to the tune of ` 328 crore KPMG for the year 2014 (third-year branch in Kormangala, Bangalore.
Banking Project, India for the year from leading global investors, in a row) RBL Bank is one of the first private
Established call centre services 2012 at the seventh Asian Banker including CDC and Asia Capital sector bank’s to open a specialised
to enhance the customer service Technology Implementation Awarded the Best Bank – Priority branch for startups
experience Sector Lending (Private Sector),
Awards Acquired Business Banking, Credit
Dun & Bradstreet Banking Received the IDRBT (Institute
Launched Debit Cards Raised Tier-I capital of over ` 376 Card and Mortgage businesses of Awards, 2014 For Development And Research
the Royal Bank of Scotland (RBS)
Added Corporate Internet Banking crore from International Finance in Banking Technology) Banking
to the internet banking suite Corporation, Ascent Capital, Aditya in India Awarded “Best ESB (Enterprise Technology Excellence Award 2014-
Birla Private Equity, Faering Launched new identity for the State Bus) Deployment” by 15 for ‘Use of Technology for Financial
Finnoviti 2015 Inclusion’
Capital, IDFC SPICE Fund and ICICI’s Bank under the name ‘RBL Bank’
Emerging India Fund Launched India’s First Credit Card Awarded the Best Corporate
Launched ‘Saksham’, the start
Partnered the Asian Development of RBL Bank’s financial literacy for Golf enthusiasts in association Payment Project at The Asian Banker
Bank (ADB) to provide a Partial programme for the underserved with the Indian Golf Union – the Technology Innovation Awards 2016
Guarantee Programme for Micro markets apex body for golf in India Awarded the MasterCard Innovation
Financial Institutions (MFIs) - a Awards - 2016 for the best Debit Card
Launched Project Sparkles – a bank
first in India Launched premium banking innovations for the India Startup Club
wide service initiative that realigns
vertical - Insignia Preferred
Debit Card
Opened the Bank’s first branch in Banking for HNI Customers the Bank’s existing processes to
Hyderabad and Chennai enhance service standards for its Awarded the Business Today - KPMG
Partnered with the Delhi customers
Best Bank (Small) Best Bank (Growth)
Opened a Regional Processing
Daredevils T20 Cricket team as and Best Bank (Quality of Assets),
Centre (RPC) in Okhla, New Delhi Launched the Bank’s first ever
their official sponsors 2015
for centralised processing and to Currency Chest in Kolhapur
achieve cost effectiveness We are registered with SEBI as
Launched the Bank’s Learning
Bankers to Issue (BTI). We have
Academy in Kolhapur
also become an SCSB (Self Certified
Syndicate Bank) from March 31, 2016
Launched the ‘India Startup
and 21 of our branches are ASBA
Club’ to cater to the needs of the
enabled
entrepreneurial ecosystem
Ranked 1st amongst 47 banks in the
Banking Codes and Standard Board
of India (BCSBI) survey 2014-15 on
Commitment to Customers and
Micro & Small Enterprises
USAID issued a Development Credit
Authority (DCA) loan guarantee
to RBL Bank to provide loans
totalling $9 million to a private
healthcare provider
6 APNO KA BANK Annual Report 2015-16 7
CORPORATE OVERVIEW FINANCIAL AND OPERATIONAL HIGHLIGHTS
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
Deposits ` in crore Advances (Net) ` in crore Net Profit ` in crore Total Assets ` in crore Networth ` in crore Capital Adequacy Ratio %
24,349 21,229 292.48 39,161 2,960 23.20
2,224 17.11
14,450 207.17 27,105 2,012
17,099 14.64
1,594 13.13 12.94
9,835 18,198
11,599 1,131
6,376 92.47 92.67 12,963
8,341 65.73
4,132 7,205
4,739
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Return on Equity % Gross NPA to Gross Advance % Net NPA to Net Advance % Net Interest Income ` in crore Net Interest Margin % EPS `
11.21 0.98 0.59 819.21 4.34 9.60
9.76
0.80 0.79 0.77
3.32 7.23
3.14 3.10
556.36
2.84
6.73
5.91 0.31
5.12 0.40 0.27 341.63 4.19
3.63
0.20 257.55 3.06
186.79
0.11
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
FY12 ` FY13 ` FY14 ` FY15 ` FY16 `
BV PER SHARE 52.62 BV PER SHARE 63.03 BV PER SHARE 71.30 BV PER SHARE 75.77 BV PER SHARE 91.17
8 APNO KA BANK Annual Report 2015-16 9
CORPORATE OVERVIEW MESSAGE FROM THE MANAGING DIRECTOR & CEO
MESSAGE FROM THE
MANAGING DIRECTOR & CEO
We have expanded our branch and ATM network
to reach 201 branches and 365 ATMs across
16 Indian States and Union Territories. We are
continuously upgrading our traditional delivery
channels with modern technology like API
Banking, Micro ATMs and Mobile Banking. We
‘Navigating for Success’ are also proactively partnering with innovative
digital payment companies to efficiently service
our 1.9 million customers.
In FY16, the Bank’s Net Total Income
Dear Stakeholders, bigger challenges and often create an
surged by 36% to ` 1,310 crore from
opportunity for smaller, more focused
` 960 crore in FY15. Net Profit for the
It is said that “Intelligence is the ability to and nimble players like us to come to
year was ` 292 crore representing a
adapt to change.” the fore. Being an agile and committed
41% increase over the previous year.
player, are we, therefore, well poised
Both Advances and Deposits increased
The banking landscape in India has been to leverage this opportunity? Indeed, by 47% and 42% Y-O-Y to ` 21,229 and ` 45,577 Cr.
going through a challenging phase over we are!
` 24,349 crore, respectively.
the past year or so led by game changing
Business size as on March 31, 2016
announcements on the regulatory side, To leap forward as an organisation par
disruptive technologies and business excellence, we have prepared our 'Vision
50.55%
models and emergence of significant 2020' strategy. We are using different
competition from new banks and non- lenses to discover new operating (AEPS), Direct Money Transfer (DMT)
CAGR over four years
banks (Telcos, Fin-tech and E-commerce models to tackle a fast-changing market among others.
entities to mention a few). The pressure where technology and competition
of bad loans and significantly impaired keep redefining industry boundaries India’s rapidly growing set of start-ups
Vishwavir Ahuja
balance-sheets of several large banks is and customer expectations. Instead of demand innovative services to meet
Managing Director & CEO
providing limited growth opportunities for plotted maps, our vision is to ‘Navigate their evolving needs. Recognising the
Corporate India even as the economy is for Success.’ challenges faced by start-ups to acquire
only gradually coming out of recent years their first customer, we also launched
of slowdown. If that’s not all, the recent At RBL Bank, we stand at the intersection the Entrepreneur-in-Residence (EIR)
‘Brexit’ vote in the United Kingdom will not of entrepreneurs, ideas, technology programme. Through this programme, fulfils evolving aspirations of the new- the market. We continued to strengthen surged by 36% to ` 1,310 crore from ` 960
make it any easier. and banking services. To support the start-ups can test their ideas, products or generation customers. our service architecture and successfully crore in FY15. Net Profit for the year was
entrepreneurial community, we became solutions on our platform, with us as their launched a dedicated Wholesale Client ` 292 crore representing a 41% increase
We are indeed living in the VUCA world one of the first banks to open a dedicated first customer. We also plan to run joint We have expanded our branch and ATM Services (WCS) desk at select locations over the previous year. Both Advances and
of Volatility, Uncertainty, Complexity and branch for startups in Koramangala, pilots with these start-ups and get into network to reach 201 branches and to cater to the service needs of the Deposits increased by 47% and 42% Y-O-Y
Ambiguity. Bangalore which is the epicentre of India's long-term partnerships with them. 365 ATMs across 16 Indian States and corporate and commercial banking to ` 21,229 and ` 24,349 crore, respectively.
startup revolution. This branch supports Union Territories. We are continuously segment, including trade and foreign Our asset quality, reflected by a 0.98% Gross
In this context, in order to respond to these early-stage companies with a basket of Over the years, we have created a strong upgrading our traditional delivery exchange lending. This desk also has the NPA, continued to remain satisfactory.
challenges and exploit the opportunities, banking services. This specialised branch culture of innovation and have developed channels with modern technology like functionality and capability to handle
how should we position ourselves? How also offers a host of value-added services quality products and services to address API Banking, Micro ATMs and Mobile specialised and niche trade services for Our growth story has been recognised
should we 'change gears' so as to emerge for customers such as Application the evolving needs of customers. For Banking. We are also proactively the Bank’s Branch and Business Banking by various industry bodies, which has
as a highly-responsive organisation yet Program Interface (API) banking, large instance, during the year, we launched partnering with innovative digital clients. stimulated us to move forward with more
strongly rooted to its core spine? volume electronic payments (IMPS/ the Fun+ Credit Card in association with payment companies to efficiently confidence. We have been awarded India’s
NEFT/RTGS) and receivables, prepaid Bookmyshow and YUM Brands. This card service our 1.9 million customers. Despite India’s slow economic recovery, Best Bank (Small), Best Bank (Growth)
Part of the answer lies in the belief card-based solutions, escrow services, enrols users to a world of delicious treats we have witnessed robust growth across and Best Bank (Quality of Assets) by
that in such a scenario, sometimes Universal Payment Interface (UPI), and blockbuster movies. It is a perfect As a bank, we are committed to creating all our business engines during the year. the Business Today – KPMG Best Bank
larger organisations tend to have Aadhaar Enabled Payment System example of product innovation that service excellence as a differentiator in In FY16, the Bank’s Net Total Income Survey in 2015.
10 APNO KA BANK Annual Report 2015-16 11
CORPORATE OVERVIEW MESSAGE FROM THE MANAGING DIRECTOR & CEO | BOARD OF DIRECTORS
BOARD OF DIRECTORS
Over the last five years, we have ‘Apno Ka Bank’ is a simple, yet powerful
been consistently raising high quality tagline, which at the core, communicates
institutional capital to grow our business and evokes a sense of belonging. It also
and strengthen our prominence. This resonates well with the philosophy of Our growth story has been recognised
year too, we managed to raise ` 488 crore our bank which revolves around building by various industry bodies, which
through a pre-IPO preferential placement strong relationships with each stakeholder has stimulated us to move forward
from global investors including the Asian even as we attempt to do that by being with more confidence. We have been
Development Bank and CDC Group Plc. responsive and responsible. It is entirely awarded India’s Best Bank (Small), Best
This fresh capital will help in augmenting consistent with the Banks internal values Bank (Growth) and Best Bank (Quality
our tier 1 capital base to meet the future of ‘PREET’. In short, ‘Apno Ka Bank’ is the of Assets) by the Business Today –
Narayan Ramachandran Vishwavir Ahuja Rama Bijapurkar
capital needs of the Bank. essence or the personality that we are KPMG Best Bank Survey in 2015.
attempting to create as a Bank which Non-Executive Chairman Managing Director & CEO Independent Director
At RBL Bank, our 3,872 employees are is akin to building an institution ‘of the
integral to our consistent growth and people, by the people and for the people.’ I
success. Their experience and valuable hope each one of you takes pride in being a
inputs have always played a vital role in part of this new brand personality.
ensuring the Bank’s holistic development.
By 2020, we aim to be one of the ‘top 10 I need your cooperation, support and
Great Places to Work’ in India among encouragement to stay true to our vision
all sectors. To reach this goal, we are and make our journey more remarkable
constantly raising the bar through training, and promising.
culture-building and team engagement
Vimal Bhandari Jairaj Purandare Girish Godbole
initiatives to promote our philosophy of Together, we can navigate this Bank to
‘One Bank’. Our learning and development greater success! Independent Director Independent Director Independent Director
activities are specially targeted to build the
future leadership pipeline of the Bank. Best Regards,
As part of our transformational effort,
we have been attempting to build an
institution that represents the best
in banking, governance and service Vishwavir Ahuja
standards and one which our customers, Managing Director & CEO
employees and partners can call their
‘own’. This is exactly what we are trying
P. Sudhir Rao D. Sivanandhan Prakash Chandra
to communicate through our new brand
promise ‘Apno Ka Bank’ which is also the Independent Director Independent Director Additional Director
theme of our Annual Report this year.
Ishan Raina Rajesh Kumar Rajeev Ahuja
Additional Director RBI - Additional Director Executive Director (subject to
RBI & shareholders approval)
12 APNO KA BANK Annual Report 2015-16 13
CORPORATE OVERVIEW SENIOR MANAGEMENT TEAM
SENIOR MANAGEMENT TEAM
Rana Vikram Anand Surinder Chawla Harjeet Toor
Head - Segments and Products, Head - Geography, Branch Head - Cards, Retail & MSME Loans
Branch and Business Banking and Business Banking and Financial Inclusion
Vishwavir Ahuja Naresh Karia Manoj Rawat Bhaskar Niyogi
Managing Director & CEO Chief Financial Officer Head - Agri Business Head – Enterprise Risk & Policy
Rajeev Ahuja R. Gurumurthy Shanta Vallury Gandhi Neeta Mukerjee Joginder Singh Rana Sunny Uberai
Head - Strategy, Retail Head - Risk and Head - HR, CSR and Internal Chief Credit Officer Chief Operations Officer Chief of Staff and Head - Change
and Financial Inclusion Governance Branding Management and Service Delivery
Andrew Gracias Sandeep Thapliyal Brijesh Mehra Sanjay Sharma Satish Dhawan Rajeev Dewal
Head - Financial Markets Head - Commercial Banking Head – Corporate, Institutional & Head - Technology, Innovation Chief Infrastructure and Head - Legal
Transaction Banking and Customer Fulfilment Administration Officer
14 APNO KA BANK Annual Report 2015-16 15