RBL Bank Limited is a scheduled commercial bank, headquartered in the Mumbai 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 and has a total business size of over Rs. 64,000 Crores. 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.
As of June 2017, ICRA has rated the Bank as A1+ (Rs.3,000 Cr) for the Certificates of Deposits Program, MAA- with a positive outlook on the Fixed (Term) Deposit Program and A+ (Hyb) for the Basel III compliant Tier II subordinate debt program.
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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, 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 as the Managing Director & CEO and underwent a radical transformation from an old private sector bank into a vibrant, professionally governed and managed new-age bank with a high degree of professionalism, competitiveness, size and scale. 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, ICICI Lombard General Insurance, 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 Today, RBL Bank is one of India's fastest growing private sector bank within the last 5 years.
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Listing
On 31 August 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. in 2014 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. 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%.
In the year 2016-17, RBL Bank's registered a Net Total Income of Rs. 1,977 crore from Rs. 1,310 crore in the previous year, registering an increase of 51%. Moreover, Advances and Deposits increased by 39 % and 42 % Y-O- Y to Rs. 29,449 crore and Rs. 34,588 crore, respectively. The Net Profit for the year grew by 53% to Rs. 446 crore and its CAGR over five years stood at 48.49%. Key metrics such as its Capital Adequacy Ratio and Net Worth also improved, which are representative of a strong balance sheet. The Bank's Cost to Income ratio improved from 58.6% in FY 16 to 53.4% in FY17. At the same time, its Return on Assets (RoA) and Return on Equity (RoE) improved from 0.98% and 11.32% in FY 16 to 1.08% and 11.67% in FY 17 respectively. The Bank's asset quality reflected by a 1.20% Gross NPA and 0.64 Net NPA, continued to remain satisfactory.
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.
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.
Products & services
- Accounts
- Fixed Deposits
- Credit Cards
- Loans
- Abacus Account
- 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
- 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.RBL Bank was one of the first private sector Bank's to open a dedicated branch for startups in Bangalore.
- 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. Another Saksham programme was run in Ahmedabad in 2013.
- 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
- 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 1,000 km 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.. In 2016, the Mumbai to Hyderabad route raised Rs 81 Lakhs to spread awareness for the education of underprivileged young girls.
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.
- Recognised as a Global Growth Company, 2014 by World Economic Forum
- Rated as India's Best Bank (Growth) in the mid-sized bank segment - A Business Today and KPMG study in 2012, 2013, 2014 & 2015.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.
- Ranked as the Best Bank in the Priority Sector Lending (Private Sector), Dun & Bradstreet Banking Awards, 2014 & 2015.
- World Economic Forum Recognizes RBL Bank as a Global Growth Company.
- Rated as the Best Indian Banker (Small-Sized), Sunday Standards Best Bankers Award, 2013
- Winner of the Best Core Banking Project, India, 2012, Asian Banker Technology Implementation Award
- Financial Services Company of the Year award by VCCircle.
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
- RBL Bank acquired a 30% stake in Swadhar Finserve Pvt Ltd in May 2016.
- RBL Bank acquired a 9.99% stake in Utkarsh Micro Finance in October 2016.
Source of the article : Wikipedia
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