Asset Quality, NPAs, and Provisioning:
- Slippages during '21 almost 80% in retail owing to the impact of the COVID pandemic.
- Gross and Net NPA stood at 4.34% & 2.12% respectively as of March 2021. The same is down against the proforma numbers 4.57% & 2.52% respectively.
- There is an improvement in Asset Quality in the last quarter of FY21.
- Bank seeks to further improve the prudential ratios including PCR to well beyond 80% including write-offs and over 60% excluding write-offs respectively. Currently, PCR including technical write-offs improved to 72.2% from 64% in March '20.
- Wholesale advances in GNPA and net NPA were Rs.1,100 crores and Rs.545 crores respectively.
- Of the net NPA of the bank in the wholesale of approximately Rs.545 crores, around Rs.100 crores is from the retail group and Rs.200 crores from the corporate group.
- In Credit Card, Micro Banking, and MSME segments, the Bank has followed a very conservative policy of accelerated provisioning for all the unsecured retail loans.
- Fee income grew 8% year-on-year to Rs.2,058 crores.
- For Q4'21 core fee income grew 40% year-on-year and 33% quarter-on-quarter to Rs.660 crores, higher than the pre-COVID levels.
- Bank’s Granular retail businesses, led by credit cards accounted for 80% of the core fee income, it was 77% in Q4 FY'21.
- Credit card fees grew 25% year-on-year and general banking income grew 30% year-on-year in Q4'21.
- Net Interest Margin of the bank in Q4FY21 was 4.17%, same was flat in a sequential manner.
- The Pre-Provisioning Operating Profit of the company was Rs. 877 Cr. in Q4FY21 up by 17% YoY and 9% QoQ.
- Total deposits grew 26% year-on-year and 9% sequentially to Rs.73,121 crores.
- On an incremental basis, retail LCR deposits constituted 54% of the Banks’ total deposits raised in FY'21.
- CASA deposits growth was strong at 36% year-on-year and 11% sequentially/
Bank’s Achievements- FY21:
- Onboarded 190 wholesale banking clients in the last year, contributing to current account balance.
- The bank's AEPS service is ranked fifth in terms of transactions processed in the country. Bank processes around 30 lakh transactions per month.
- The bank has achieved over 25% market share of disbursements in the MFI payments segment.
- During FY'21, API has increased from 30,000 API transactions to 5 lakh API transactions per day.
Other Performance Metrics:
- Advances grew 4% sequentially and 1% year-on-year.
- Retail advances grew 13% year-on-year and 4% sequentially whereas wholesale advances grew 3% sequentially.
- PAT for the quarter was 75 crores, down because of the accelerated additional provisioning.
- For the full year, PAT was Rs.508 crores, just about the same level as last year.
- The capital adequacy ratio of the bank as of March 31, '21 was at 17.5% with a CET-1 of 16.6%.
- The bank is gradually accelerating retail businesses with a stronger focus on secured retail businesses, while at the same time maintaining our market share in credit cards and microfinance.
- In rural markets, Bank is taking initial steps to build a tractor finance book.
- In the micro banking business, Bank is introducing secured products such as loans against gold, home improvement, and two-wheeler loans as cross-sell products to the large customer base.
- Bank will continue to invest in credit card franchises through better cross-sell and customer value proposition and are prepared to take advantage of the current market opportunities.
- In micro banking, outside of the three, four impacted states, the businesses on the ground are doing well with overall collection efficiencies at 97%.
- Spends are higher than the pre-COVID level run rate, March '21 versus March '20 is higher by 28%. Spends for active cards are also up by 8%.
- Bank-issued 3.82 lakh new cards in Q4 versus 3.5 lakhs in the previous quarter. Overall, in the year the new card issuance was at 9.8 lakhs versus 14.5 lakhs in FY'20.
- RBL Bank is the fifth largest card player in the industry and is confident that Bank would continue to grow in this business prudently and maintain or grow our market share.
- The micro banking book saw a growth of 6% over the previous quarter and 11% year-on-year. This was despite negligible disbursal in the four impacted states of Assam, West Bengal, Maharashtra, and Punjab.
- Bank ended the quarter with 429 bank branches, up from 386 in the Q3FY21, 1,365 BC branches, up from 1,245 in the previous quarter, and 412 ATMs, up from 389 in the previous quarter.
- The focus on expanding the distribution franchise will continue as one of the key channels to add a relevant customer base to the bank's growing franchise.