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RBL Bank

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RBL Bank
Company typePublic
BSE: 540065
NSE: RBLBANK
IndustryBanking
Financial services
FoundedAugust 1943
Key people
Vishwavir Ahuja, MD and CEO
ProductsCorporate & Institutional Banking
Commercial Banking
Retail Banking
Agri & Development Banking
Financial Markets [1]
₹292 crore (US$35 million) (2016)
Number of employees
4622 (as on October 2016)
Websitewww.rblbank.com

RBL Bank Limited is a scheduled commercial bank, headquartered in the Kolhapur region of Maharashtra, India. Founded in August 1943, RBL is one of the oldest private sector banks in India. The Bank currently services approximately 3.15 million customers [2] and has a total business size of over Rs. 64,000 Crores[3]. It offers a range of banking products and services categorized largely in 5 verticals - Corporate & Institutional Banking, Commercial Banking, Retail Banking, Agri & Development Banking and Financial Markets.[4] As of June 2017, ICRA has reaffirmed the rating of [ICRA] A1+ to the Rs 2,250 Crore (Enhanced from Rs. 1,500 Crore) Certificates of Deposits Programme of RBL Bank. It has also reaffirmed the rating of [ICRA]MAA- with stable outlook on the Fixed Deposit Programme and the rating of [ICRA] A1+ to the Short Term Fixed Deposits Programme of the bank.[5]

History

In August 1943, RBL Bank was incorporated as a small, regional bank in Maharashtra with two branches in Kolhapur and Sangli. It was founded to cater to the needs of small and medium business merchants in the Kolhapur-Sangli belt. In August 1959, the Bank was categorised as a "Scheduled Commercial Bank" within the meaning of the Reserve Bank of India Act, 1934. In the banking circles, RBL Bank was often known as the NH4 Bank,[6] since a majority of its business was sourced from cities in and around the 1,235-kilometer-long National Highway 4 that connected four of the 10 most populous cities in India.

In July 2010, RBL Bank inducted Mr. Vishwavir Ahuja[7] as the Managing Director & CEO to transform the institution. The Bank also revamped the management by inducting professionals from the banking, finance, agriculture and other related fields. Since then, RBL has raised high quality institutional capital from noteworthy investors such HDFC Limited, Gaja Capital, Norwest Ventures, CDC Group Plc, Aditya Birla Private Equity, IDFC SPICE Fund, Ascent Capital among others. The Bank has raised Rs. 700 Cr. 2011, Rs 376 Cr. in 2013,Rs. 328 Cr. in April 2014 and successfully raised Rs. 488 Cr. as Pre-IPO preferential placement from several global and domestic investors augmenting its Tier 1 capital to meet the future capital needs of the Bank[8][9] Today, RBL Bank is one of India’s fastest growing private sector bank within the last 5 years. [10]

Listing

On August 31st, 2016, RBL Bank was listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The IPO received an overwhelming response from investors and was subscribed almost 70 times (QIB -86 times; NIB –nearly 200 times and Retail – 5.6 times).The Bank was listed at Rs 274 on the National Stock Exchange (NSE), a 22% premium against its issue price of Rs 225 per share.

Capital Raising

Over the last few years, RBL Bank has infused capital to the tune of Rs 4,000 Cr, from leading domestic and global investors. The Bank has successfully raised Rs. 700 Cr in 2011, Rs 376 Cr. in 2013, Rs. 328 Cr. 2014[11] and Rs.488 Cr in 2016. In September 2016, RBL Bank raised Rs 330 Crores from the UK-based development finance institution, CDC Group Plc (CDC), through Basel III compliant Tier II capital. 
In July 2017, RBL Bank got the board approval to raise Rs 1680 Cr.[12] from marquee investors such as CDC Group Plc, Multiples Alternate Asset Management, HDFC Standard Life Insurance Company, Global IVY Ventures, ICICI Lombard General Insurance Company and Steadview Capital.

Financial Performance

Over the last three years, RBL has infused capital of over Rs. 2,000 Cr, from leading domestic and global investors. In the year 2015-16, RBL registered a profit of INR 292 Cr, up 40% & paid a dividend of 15%. As per the results declared in the fiscal year 2014-15, RBL had a balance sheet growth of 49% and a 4-year CAGR of 70%.[13][14]

Operations

RBL Bank has grown to a network of 244 branches and 387 ATMs[11] across 20 Indian states and Union Territories as of June 2017.[15] [16]

Sectors

As a full service bank, RBL services large corporations, small and medium enterprises (SMEs), agricultural customers, retail customers and development banking & financial inclusion (low income) customers.[17]

Products & Services

  • Accounts
  • Fixed Deposits
  • Credit Cards
  • Loans
  • Insurance
  • Internet Banking
  • Mobile Banking
  • Investment Services
  • Demat
  • Agri Business Banking
  • Micro Banking
  • Small Business Banking
  • NRI Banking
  • Insignia Preferred Banking
  • Development Banking & Financial Inclusion

Initiatives

  • India's first credit card for Golf Enthusiasts in association with Indian Golf Union
  • Shmart e-Wallet[18]
  • India Startup Club - With the Indian Government’s campaigns like Make in India and Startup India, RBL Bank launched the India Startup Club, to service the end-to-end banking needs of the emerging entrepreneurial community.[19]RBL Bank was one of the first private sector Bank’s to open a dedicated branch for startups in Bangalore.[20]
  • Saksham - A financial literacy programme in collaboration with CDC to provide education to 25,000 individuals and 300 villages in four districts of Madhya Pradesh.[21] Another Saksham programme was run in Ahmedabad in 2013.[22]
  • Swadhaar FinAccess (SFA) - In collaboration with Swadhaar Information and Management Services, RBL Bank started a financial literacy programme in Gujarat and Mumbai, which held a classroom based financial literacy course for women from low income communities.
  • Banking Partner for Delhi Daredevils [23]

Corporate Social Responsibility

  • Promoting Education
  • Preventive Healthcare
  • Women Empowerment
  • Sustainable Livelihood
  • ‘Umeed 1000’ Cyclathon - RBL Bank has organised 'Umeed 1000' Cyclathon, a fundraiser, since 2014. Cycling enthusiast Jasmeet Singh cycled with few bank employees for 1000 kms, every year to raise funds and spread awareness about grave issues prevailing in India. In 2014, The Mumbai to Bangalore route raised Rs.23 Lakhs for children suffering from Retinoblastoma - a deadly form of eye cancer. In 2015, the Mumbai to Delhi route raised Rs.37 Lakhs for providing primary education to empower young village girls in India.[24][25][26][27]. In 2016, the Mumbai to Hyderabad route raised Rs 81 Lakhs to spread awareness for the education of underprivileged young girls.[28]

Awards & Recognition

  • 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
  • Awarded the MasterCard Innovation Awards – 2016 for the best Debit Card innovation for the India Startup Club Debit Card
  • Awarded the Best Corporate Payment Project at the Asian Banker Technology Innovation Awards 2016
  • Received the IDRBT(Institute for Development and Research in Banking Technology) Banking Technology Excellence Award 2014-15 for ‘Use of Technology for Financial Inclusion.’
  • Featured at the 31st position in the Fortune Next 500 list of Indian companies, 2015. Other companies included MakeMyTrip, IRCTC and Redington.[29]
  • Recognised as a Global Growth Company, 2014 by World Economic Forum[30][31]
  • Rated as India’s Best Bank (Growth) in the mid-sized bank segment - A Business Today and KPMG study in 2012, 2013, 2014 & 2015.[32]Also rated Best Bank (Small) and Best Bank (Quality of Assets) 2015
  • Rated as the Fastest Growing Small Bank according to Business World-PWC Best Bank Survey 2013, 2014 & 2015.[33]
  • Ranked as the Best Bank in the Priority Sector Lending (Private Sector), Dun & Bradstreet Banking Awards, 2014 & 2015.[34]
  • World Economic Forum Recognizes RBL Bank as a Global Growth Company.[35]
  • Rated as the Best Indian Banker (Small-Sized), Sunday Standards Best Bankers Award, 2013[citation needed]
  • Winner of the Best Core Banking Project, India, 2012, Asian Banker Technology Implementation Award[36]
  • Financial Services Company of the Year award by VCCircle.[37]

Acquisitions

  • RBL Bank bought certain businesses of the Royal Bank of Scotland (RBS), India in 2013. The deal included business such as Business Banking, and Credit Cards and the mortgage portfolio, leading to 1.2 lakh customers of RBS, moving to RBL Bank[38][39][40]
  • RBL Bank acquired a 30% stake in Swadhar Finserve Pvt Ltd in May 2016.[41]
  • RBL Bank acquired a 9.99% stake in Utkarsh Micro Finance in Oct 2016.[41]

References

  1. ^ "RBL Products". VC Circle. Retrieved 11 April 2016.
  2. ^ "RBL Bank customers" (PDF). Business Standard. Retrieved 18 September 2017.
  3. ^ "RBL Bank hits record high". Business Standard. Retrieved 18 September 2017.
  4. ^ "RBL Bank files DRHP to raise up to $173M in IPO". VC Circle. Retrieved 11 April 2016.
  5. ^ "RBL Bank Credit Rating" (PDF). RBL Bank. Retrieved 11 April 2016.
  6. ^ "NH4 Bank". Business Standard. Retrieved 11 April 2016.
  7. ^ "About Mr Vishwavir Ahuja - MD and CEO". Bloomberg. Retrieved 11 April 2016.
  8. ^ "Pre-IPO Preferential Placement". Economic Times. Retrieved 11 April 2016.
  9. ^ "Pre-IPO Preferential Placement". Business Standard. Retrieved 11 April 2016.
  10. ^ "RBL Bank has broken quite a few records in the last 5 years". Business Today.
  11. ^ . Bussiness Standard https://www.business-standard.com%2Farticle%2Ffinance%2Frbl-bank-raises-rs-328-cr-from-global-investors-114041000524_1.html. {{cite web}}: Check |url= value (help); Missing or empty |title= (help); Unknown parameter |access date= ignored (|access-date= suggested) (help)
  12. ^ . Business Standard https://www.business-standard.com%2Farticle%2Fcompanies%2Frbl-bank-to-raise-rs-1-680-cr-from-institutional-investors-117070800046_1.html. {{cite web}}: Check |url= value (help); Missing or empty |title= (help); Unknown parameter |access date= ignored (|access-date= suggested) (help)
  13. ^ "RBL Bank Q4 Results". Live Mint. Retrieved 11 April 2016.
  14. ^ "Annual Report 2014-15" (PDF).
  15. ^ Sonavane, Ravindra N. (10 April 2017). "RBL Bank now among India's 10 most valuable banks". http://www.livemint.com/. Retrieved 27 June 2017. {{cite news}}: External link in |work= (help)
  16. ^ "RBL on Linkedin".
  17. ^ . Money Control http://www.moneycontrol.com/ipo/rbl-bank_RB02.html. {{cite news}}: Missing or empty |title= (help)
  18. ^ "Eko Wallet Launch". Medianama. Retrieved 11 April 2016.
  19. ^ "India Startup Club". The Hindu. Retrieved 11 April 2016.
  20. ^ "RBL Bank opens dedicated branch for start-ups in Bengaluru". The Hindu Business Line. Retrieved 20 April 2016.
  21. ^ "RBL Saksham in Madhya Pradesh". Telegraph India. Retrieved 11 April 2016.
  22. ^ "Saksham in Ahmedabad". Times Of India. Retrieved 11 April 2016.
  23. ^ "RBL Partners With Delhi Daredevils". Times Of India. Retrieved 11 April 2016.
  24. ^ "Umeed 1000 Cyclathon". Times Of India. Retrieved 11 April 2016.
  25. ^ "Umeed 1000 Cyclathon". Business Standard. Retrieved 11 April 2016.
  26. ^ "Umeed 1000 Cyclathon". Ahmedabad Mirror. Retrieved 11 April 2016.
  27. ^ "Umeed 1000 Cyclathon". DNA. Retrieved 11 April 2016.
  28. ^ "Cycling for a cause". The Week.
  29. ^ "Fortune Next 500 Indian Companies". Economic Times. Retrieved 11 April 2016.
  30. ^ "WEF Recognises RBL". Telegraph India. Retrieved 11 April 2016.
  31. ^ "WEF Recognises RBL". Business Wire India. Retrieved 11 April 2016.
  32. ^ "India's Best Banks". Business Today. Retrieved 11 April 2016.
  33. ^ "Business World-PWC Best Bank Survey". Business World. Retrieved 11 April 2016.
  34. ^ "RBL Certifications" (PDF).
  35. ^ "Global Growth Company" (GGC) 2014".
  36. ^ "Best Core Banking Project Awardee". Information Week. Retrieved 11 April 2016.
  37. ^ R, Bruhadeeswaran. "RBL Bank is financial services company of the year: VCCircle Awards". Retrieved 24 March 2017.
  38. ^ "RBS Sells Business To RBL". India Times. Retrieved 11 April 2016.
  39. ^ "RBL Acquires Business From RBS". Economic Times. Retrieved 11 April 2016.
  40. ^ "RBL-RBS Acquisition". Reuters. Retrieved 11 April 2016.
  41. ^ a b "RBL investments" (PDF).
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