1. ECONOMIC OVERVIEW
1.1 Global Economy
The global economy showed remarkable resilience, characterised by consistent growth and a rapid decline in inflation, despite facing significant challenges. Events such as post-pandemic supply chain disruptions, an energy and food crisis due to the Russia-Ukraine war, and a surge in inflation followed by synchronised monetary policy tightening marked this journey.
Global growth, which reached 3.2% in 2023, is forecasted to remain stable through 2024 and 2025 but is likely to fall short of the 3.8% historical average. This moderation is due to ongoing restrictive monetary policies, decreased fiscal support, and sluggish productivity growth. Global headline inflation, which averaged 6.8% in 2023, is projected to fall to 5.9% in 2024 and further to 4.5% in 2025. This decline is primarily seen in advanced economies, where inflation is anticipated to revert to near pre-pandemic levels more quickly than in emerging markets and developing economies.
Advanced economies are expected to see a slight uptick, driven primarily by the Euro areas recovery, with growth rates projected to increase from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025. On the other hand, emerging markets and developing economies are forecasted to maintain stable growth at 4.2% during 2024 and 2025, although regional disparities exist. While growth in Asia may moderate, growth in the Middle East, Central Asia, and sub-Saharan Africa is expected to counterbalance this moderation.
Global Economic Growth
| Estimate | Projections | Year-on-Year | |
| 2023 | 2024 | 2025 | |
| World | 3.2 | 3.2 | 3.2 |
| Advanced Economies | 1.6 | 1.7 | 1.8 |
| Emerging Markets and Developing Economies | 4.3 | 4.2 | 4.2 |
Confidence in a soft landing for the global economy is increasing, supported by better-than-expected economic data in many regions. Investors and central banks anticipate monetary policy easing in the coming quarters, as the cumulative interest rate hikes over the past two years are believed to being sufficiently restrictive to bring inflation back to central banks targets. However, the persistence of global inflation above these targets could challenge this scenario and potentially lead to instability. The recent fluctuations in core inflation in some countries serve as a reminder that the effort to reduce inflation is not yet finished.
As per the IMF Financial Stability Report, during the turmoil in March 2023, the majority of banks demonstrated resilience. Strong capital and liquidity buffers, along with improved profitability, have boosted bank stock prices globally since then. However, looking ahead, certain banks remain vulnerable, according to key risk indicators from the IMF staff. Some Chinese banks are experiencing breaches due to thinning capital ratios and concerns about deteriorating asset quality, while some large regional banks in the United States are facing various pressures.
The global economic environment is currently in a state of equilibrium, but uncertainties persist. Geopolitical tensions, such as those in Ukraine, Gaza, and between Iran and Israel, have the potential to disrupt energy exports from the Middle East, possibly resulting in higher crude oil prices. This, in turn, could increase the probability of higher interest rates and lower asset values. Divergent rates of price decreases in major economies could lead to currency fluctuations, affecting the financial sector. The confluence of high interest rates, household debt levels, and adjustments to fixed-rate mortgages could strain financial stability.
1.2 Indian Economy
Indias economy has demonstrated resilient and consistent growth despite facing global economic challenges in recent years. Stringent policy measures and the gradual recovery of the private sector underpin this strong trajectory. Poised for further economic advancement, the country is propelled by significant investments in emerging sectors, ongoing Government expenditure, and efficiency enhancements through digitalisation and infrastructure upgrades.
In FY 2023-24, Indias economy witnessed robust expansion, estimated to achieve a remarkable 7.6% growth rate, surpassing earlier projections. However, looking ahead to the next fiscal year, there is a cautious outlook,
Indias economic vitality is bolstered by several factors, including increased consumer purchasing power due to lower inflation, expected strong agricultural outputs, and a resurgence in private capital expenditure.
with GDP growth expected to moderate to 6.8%. This anticipated slowdown is attributed to a tight fiscal policy aimed at reducing the deficit to 5.1% of GDP Despite these challenges, Indias economic vitality is bolstered by several factors, including increased consumer purchasing power due to lower inflation, expected strong agricultural outputs, and a resurgence in private capital expenditure. Additionally, government efforts to enhance rural incomes and boost infrastructure spending reaffirm Indias status as the worlds fastest-growing major economy.
Indian Economy Real GDP Growth Rate (in %)
| Year | FY | FY | FY | FY | FY |
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | |
| GDP Growth Rate (%) | 3.7 | (6.6) | 8.7 | 7 | 7.6E |
E: Estimated
India is currently the fifth-largest economy globally and is expected to maintain the highest growth rate among the top five economies in the foreseeable future. Several developments have bolstered foreign investor confidence in the country. Progressive government reforms and growing investor faith in Indias growth story have propelled the Nifty 50 index to a new high, with 16% growth in 2023. As of November 2023, Indias stock market ranked seventh globally, with a market capitalisation of US$ 3.989 trillion.
In the final quarter of 2023, India experienced a notable increase in foreign investments in government bonds, reflecting heightened global confidence in its economic prospects. As of April 5, 2024, Indias foreign exchange reserves reached an all-time high of US$ 648.56 billion, with reserves surging by US$ 2.98 billion.
In FY 2023-24, the Wholesale Price Index (WPI) inflation stood at (0.70)%, significantly lower than the 6.52% WPI
inflation reported in FY 2022-23. This sharp decrease in inflation was a key factor contributing to higher profitability for Indian corporates, as input costs were substantially lower in FY 2023-24. Indias Consumer Price Index (CPI) inflation also eased to 4.85% in March 2024, down from 5.09% in February 2024. The Government aims to moderate CPI inflation and align it with a specified target on a durable basis, ensuring the best interest rate for the economy.
Sectors like financial services, real estate, and professional services are forecasted to grow by 8.9% in FY 2023-24, up from 7.1% in FY 2022-23. These trends indicate a robust economic environment conducive to both domestic and international investments. The manufacturing sectors gross value-added growth accelerated to 6.5% in FY 202324 from 1.3% in FY 2022-23. The construction sectors gross value-added growth is expected to remain strong at 10.7% in FY 2023-24, building upon the 10% increase recorded in FY 2022-23. The services sectors gross value added is anticipated to see a slight moderation in growth, reaching 9.5% in FY 2023-24 compared to 7.7% in FY 2022-23. The largest services component (trade, hotels, transport, and communication) is expected to expand by 6.3% due to a higher base. According to the Index of Industrial Production (IIP), Indias industrial production grew by 5.7% in February 2024, contrasting with the 6% increase recorded in February 2023.
Based on the assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) decided at its meeting on April 5, 2024, to keep the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 6.50%. Additionally, the Standing Deposit Facility (SDF) rate was maintained at 6.25%, and the Marginal Standing Facility (MSF) rate and the Bank Rate was maintained at 6.75%. The MPC has reiterated its focus on withdrawing accommodation to ensure that inflation progressively aligns with the target while still supporting growth. These decisions are aligned with the objective of achieving the medium-term target for Consumer Price Index (CPI) inflation of 4% within a band of +/- 2%.
The Indian economy is poised for significant growth in the coming years, with projections indicating that it could reach the $7 trillion mark by 2031, solidifying its position as the worlds third-largest economy. This growth will be driven by enhancements in capital and productivity, facilitated by the holistic integration of digital and physical infrastructure. The future holds promising growth in capital expenditure, supported by industrial strength and efficient infrastructure development. Additionally, the Governments
Production Linked Incentive (PLI) scheme aims to enhance Indias manufacturing capabilities on the global stage, complemented by a resilient banking sector and innovative financing options. Indias economic journey is reinforced by domestic reforms, competitive advancements, and a commitment to value-added growth, all underpinned by substantial infrastructure enhancements.
2. INDIAN BANKING SECTOR OVERVIEW
As per the Reserve Bank of India (RBI), Indias banking sector is well-capitalised and well-regulated, with financial and economic conditions that are superior to many other countries. Studies on credit, market, and liquidity risks indicate that Indian banks are generally resilient and have weathered the global downturn effectively.
Innovative banking models, such as payments and small finance banks, have been rolled out in Indias banking industry. Additionally, the country has focused on expanding the reach of its banking sector through initiatives like the Pradhan Mantri Jan Dhan Yojana and Post Payment Banks. These schemes, along with significant banking sector reforms like digital payments, the emergence of neo-banks, the growth of Indian Non-Banking Financial Companies (NBFCs), and fintech advancements, have greatly improved financial inclusion in India and fuelled the credit cycle in the country.
2.1 Focus on Retail Growth
In FY 2023-24, the Indian banking sector experienced a marked recovery in the domestic financial market. The 1-year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs moved up from 8.60% in April 2023 to 8.85% in April 2024. This indicates an overall increase in the cost of funds for banks, which has contributed to the higher lending rates observed during the period.
Specifically, the weighted average lending rate (WALR) on fresh rupee loans of Scheduled Commercial Banks (SCBs) increased slightly from 9.32% in March 2023 to 9.37% in March 2024. Similarly, the WALR on outstanding rupee loans of SCBs also rose from 9.72% in March 2023 to 9.85% in March 2024, demonstrating a consistent upward trajectory in lending rates.
On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh rupee-term deposits of SCBs increased from 6.48% after March 2023 to 6.62% in March 2024. Similarly, the WADTDR on outstanding rupee term deposits of SCBs was 6.88% in March 2024, compared to 6.16% in March 2023, indicating a significant rise in deposit rates over the year. These adjustments in deposit rates suggest that banks are offering slightly higher interest rates to attract deposits, possibly to balance their funding needs amidst changing market conditions.
Overall, the focus on retail growth in the banking sector is evident from these trends as banks navigate the evolving economic landscape by adjusting their lending and deposit rates to ensure sustainable growth and profitability.
2.2 A Look at the Major Sectors
Non-food bank credit grew by 16.3% in March 2024 year- on-year, up from 15.4% the previous year. This indicates a general increase in lending activity, suggesting a potentially more confident economic outlook among banks and borrowers. The agriculture and allied activities sector saw a significant jump in credit growth, from 15.4% to 20.1% year- on-year. The robust increase may reflect a targeted focus on bolstering agriculture and related sectors or a response to favourable policies or market conditions that encourage lending to these areas.
The credit growth in the industry was more modest but still showed improvement, increasing from 5.6% to 8.5% year- on-year. Within this sector, certain industries like chemicals, chemical products, food processing, and infrastructure experienced accelerated growth. However, there was a slowdown in credit to basic metal & metal products, indicating possible sector-specific challenges or reduced demand.
Notable increases were seen in credit to transport operators and commercial real estate, suggesting an expansion or increased investment in these areas. However, credit growth to non-banking financial companies (NBFCs) and trade saw a decline, which could be indicative of regulatory changes, market saturation, or shifts in consumer behaviour affecting these sub-sectors.
The slowdown in vehicle loans and other personal loans could be due to a variety of factors, including increased interest rates, tighter lending standards, or shifts in consumer confidence and spending behaviour.
2.3 Key Performance Indicators of the Economy
Key Performance Indicators (KPIs) for the Indian banking sector, particularly regarding asset quality, are showing positive trends, according to CareEdge Ratings. The Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks (SCBs) is projected to improve from an expected 2.5-2.7% in FY 2023-24 to 2.1-2.4% by FY 2024-25. This improvement is attributed to several factors:
• Moderation in Slippages: There has been a moderation in the number of loans turning into non-performing assets (NPAs), which has helped in reducing the overall GNPA ratio.
• Elevated Provision Coverage Ratio (PCR): The
provision coverage ratio, which indicates the extent of provisions held by banks to cover potential losses from bad loans, is at elevated levels. This has resulted in lower incremental credit costs for banks.
• Corporate Deleveraging: Corporate deleveraging has led to improved financials for banks, as companies are reducing their debt burdens, leading to lower defaults.
• Retail Book Slippage: While there is some level of slippage expected from the retail book, the overall impact is expected to be manageable due to sustained retail GNPA levels, even with high levels of unsecured loans.
• Long-Term GNPA Levels: At the projected GNPA levels, the figures would have reached long-term levels prior to the pre-AQR levels, indicating a return to healthier asset quality metrics.
• Benign Credit Costs: Credit costs are estimated to remain benign, indicating that the costs associated with lending are not expected to increase significantly.
Despite these positive trends, there are some downside risks to asset quality, including any material weakening due to elevated interest rates, regulatory changes, a tighter liquidity environment, or global issues. Monitoring unsecured personal loans and restructured accounts remains important for banks to manage these risks effectively. Overall, the improvement in asset quality metrics is a positive sign for the Indian banking sector, indicating a healthier financial system.
3. REVIEW OF BUSINESS SEGMENTS AND OPERATIONS
RBL Banks operations span across various business segments.
These are:
• Corporate banking, comprising corporate banking offerings, financial institutions and government
banking, supply chain, inclusive financial institutions, multinational and new economy relationships
• Commercial Banking (CB)
• Branch Banking & Retail Liabilities (BBRL)
• Retail Assets
• Treasury and Financial Markets Operations
3.1 Corporate Banking
The Banks Corporate Banking segment caters to large corporations with an annual turnover exceeding T1,500 crore. It offers a wide range of services across various industries and geographies, with a primary focus on working capital and transactional businesses.
The segment includes specialised sub-segments for financial institutions, government banking, multinational clients, and industries such as gems and jewellery, real estate, and infrastructure. It provides an array of fund-based and non-fund-based products, including current accounts, term deposits, loans, cash management, and treasury risk management solutions.
The Banks corporate banking segment also offers supply chain financing, structured advances, and deposit services. The segments branch in Gift City provides financing services to corporates operating outside India. Additionally, the segment cross-sells retail products and distributes insurance and mutual funds. The Financial Institutions team facilitates inter-bank dealings and trade support, while the Government Banking team focuses on liability building and digital banking channels.
Key highlights of FY 2023-24 include:
• The segment witnessed continuous growth in its client base and onboarded marquee new-to-bank (NTB) clients
• Continued focus on retail cross-selling
• Secured high fee-income transactions with prominent clients
• Managed significant dividend deals for marquee names, generating substantial float income
• Continued focus on increasing granularity in exposure, yield, and cross-selling opportunities
3.1.1 Government Banking Initiatives
• Received authorisation for central tax collection, including direct and indirect taxes and civil pension. Went live for income tax and GST, with customs duty and civil pension in progress
• Bagged and executed dividend mandates totalling over T10,000 crore during the year
• Achieved state empanelment with Goa and West Bengal
• Empanelled as state agency business banker in Madhya Pradesh, Telangana and Karnataka
• Completed Pan India MOU with Stock Holding Corporation for E-Stamping
3.1.2 Financial Institutions Group Initiatives
• Started fund-based limits for top capital market clients along with a significant increase in non-fund book of the segment. Margin FDs also increased significantly
• Achieved significant traction in Escrow Services, which contributed handsomely to the Current account
• Structured ECB transactions through Gift City for NBFC clients
• Continued focus on increasing granularity in exposure, yield, and cross-selling opportunities
3.1.3 New Economy Initiatives
• Liabilities grew by 33% year-on-year
• Went live with 25 digital mandates and a marquee escrow leading to incremental CASA and Forex flows
• Predominant contributor to the Gift liabilities book by active engagement with overseas clients
3.1.4 Inclusive Finance Institutions Initiatives
• Advances grew handsomely in FY 2023-24 while keeping an eye on granularity, yield and cross-sell opportunities
• Consistent growth in other income led by ECB Hedging
• PSL (Priority Sector Lending) assets showed healthy growth by contributing 60% to the total advances in FY 2023-24
3.1.5 Gems & Jewellery Initiatives
The Gems & Jewellery segment serves a diverse clientele across India, with total credit facilities amounting to approximately T2,115 crore distributed across various banking services, including Corporate Finance, C&IB, Commercial Banking, Retail WCF, BBG Supply Chain, and Retail LAP The liability book grew from T200 crore in March 2023 to approximately T300 crore currently, reaching a peak balance of T403 crore. The segment maintains a completely stress-free portfolio, a notable achievement in an industry often considered risky.
3.1.6 IFSC Banking Unit (IBU), GIFT City
The Banks International Financial Service Centre (IFSC) branch located at GIFT City, Gujarat, operates as an overseas branch within an overseas jurisdiction. This setup enables RBL Bank to explore international business opportunities in capital markets and NRI accounts, among others.
Regulated by the International Financial Services Centres Authority (IFSCA), the IFSC branch raises foreign currency deposits and bank borrowings. It uses these funds to provide funding, loans, bank guarantees, and trade finance to overseas corporate customers. The branch adheres to the Banks strict underwriting standards for loans and participates in foreign syndicated loans.
Moreover, the IFSC branch extends credit facilities to customers through External Commercial Borrowings (ECB) and trade credit. It also offers treasury services for currency and interest rate hedging, enhancing its range of services for international clients.
3.2 Commercial Banking
RBL Banks Commercial Banking segment is dedicated to addressing the financing requirements of Small & Medium Enterprises (SMEs) with annual turnovers between T50 crore and T250 crore, and Mid-Market Enterprises (MMEs) with turnovers ranging from T250 crore to T1,500 crore. The focus is on fostering emerging and rapidly expanding enterprises, including newer businesses.
The Segment collaborates closely with MMEs and SMEs, offering them tailored support and flexible solutions designed to elevate their businesses to greater heights.
Key highlights of FY 2023-24:
• Achieved 35% growth in deposits in FY 2023-24
• Improved self-funding ratio from 65% in FY 2022-23 to 78% in FY 2023-24
• Launched 10 new clusters since FY 2022-23
3.2.1 Transaction Banking
The Bank has expanded its Transaction Banking (TB) with strong growth across multiple business segments focusses on growing market share through offerings such as Business Current Accounts, Collection and Payments Solutions, Trade Services, and Trade Remittances. Core fees from transaction banking grew 25% on a year-overyear (YoY) basis, in addition to benefits accruing from upsells and cross-sells.
Key highlights of FY 2023-24:
• Built a gift city import finance book of $100 million, along with LC issuance capability
• Completed the first syndicated factoring deal
• Achieved steady CASA growth by leveraging enhanced CMS, dividend, escrow/TRA, nodal, and customised solutions across digital infrastructure
• Recorded significant new product rollouts, including Direct Taxes, GST, E-Guarantees, e-SCF, BG process automation, supply chain platform, and Trade X upgrade
3.3 Banking as a Service (BaaS)
Amid the rapid disruption in digitalisation of Indias financial sector, RBL Bank has been successful in establishing a place for itself in the digital ecosystem by undertaking innovative technological initiatives. The Bank has a dedicated digital payments unit focused on leveraging the new payment platforms through their nimble APIs. The unit was setup with a focus on building the issuance businesses (prepaid
instruments), acquiring business (which include POS, e-commerce, and collection solutions), channel businesses (including payments businesses, facilitating remittances to the last mile through business correspondents) and open banking architecture for collections and payment services through a platform of various Application Programming Interfaces (APIs).
Over the last few years, RBL Bank has been instrumental in conceptualising industry-specific innovative solutions for businesses in the field of payment APIs, Domestic Money Transfer (DMT), Prepaid (Self Issuance, Partnership Model & Escrow), Merchant Acquiring (Partnership Model), Collection Platforms through Nodal Accounts, Aadhaar- Enabled Payment System (AEPS) and Unified Payments Interface (UPI). RBL Bank has established partnerships with several fintech innovators to create an advanced digital ecosystem for its customers, thus providing tremendous platform support in the B2B space. The major differentiator for the Bank has been designing customised transaction flows to meet client and end-user expectations without compromising on regulatory and information security protocols.
The digital unit of RBL Bank aims to promote an open banking culture where clients can use the Banks systems and data to perform better and faster. The portfolio is further enhanced to provide liability and asset journeys, with a focus on cross-selling to the existing base.
The key pillars of RBL Banks digital channels are Enablement, Experience and Trust. The Banks digital channels provide a safe and secure banking platform for customers to conduct their banking transactions.
The Bank as part of its digital approach, follows the Partnership Model where the Partner (Non-Bank) in association with RBL Bank, provides a software overlay to provide products and services in compliance with the regulatory policies.
3.3.1 Some Notable Digital Initiatives
The Bank processed approx. T~3,000 billion in FY 2023-24 through API payment-based transactions with an overall growth of 20%. API payment transaction processing capability clocked at a high of 1 million transactions per day during the year, with an average daily API hit of 0.6 million.
3.3.2 Transit Revolution in India
Transit is undergoing a major revolution in India. Roughly 903 km of operational routes exist currently and with significant CAPEX investment there is approximately under 1,000 km under construction and consideration. With significant investment in CAPEX, there is a big initiative to digitise transit in India, eventually encompassing other modes of road transport.
RBL Bank, in association with Bengaluru Metro Rail Corporation Ltd. (BMRCL), launched the RuPay National Common Mobility Card (NCMC).
This unique prepaid transit cum multipurpose card is in line with the Government of India and Prime Ministers One Nation One Card initiative. NCMC can be used at all transit locations making all new metro and transit payments interoperable via one card. Apart from travel, the card can be used for fuel payments, shopping, dining, parking and toll payment, among others.
RBL Bank, in association with Bengaluru Metro Rail Corporation Ltd. (BMRCL), launched the RuPay National Common Mobility Card (NCMC).
RBL Bank issued RuPay NCMC will help grow the Bengaluru Metro user base while benefiting the existing 6 lakh+ metro travellers who frequent the Namma Metro stations.
The NCMC Card will also enable inter-operability for travel on other operational public transit systems in the country and can be used for offline contactless transactions for low-value payments.
3.3.3 RBL Bank and Amazon Pay Collaborate to Offer UPI Payment Services
UPI is one of the major contributors in the digital payment space and gaging at its potential, RBL Bank has partnered with one of the online retail giants, e-com Amazon Pay (India) Private Limited, to offer UPI payments services. Amazon Pay will function as TPAP (Third Party Application Provider) to enable UPI as one of the payment options for customers who purchase goods/services on the TPAP platform.
The Bank is offering a UPI handle for users to process their Peer to Peer and Peer to Merchant transactions. Amazon Pay will facilitate online payment services to end users/customers in the UPI ecosystem. A person can download the Amazon Pay app to make their online payment/transfer the funds through their RBL Bank UPI handle.
The impact created because of this project is significant.
3.3.4 RBL Bank - Dream 11 UPI
To further deepen the penetration in the digital payments space, the RBL Bank partnered with Dream 11 (one of the leading entities providing fantasy sports to users in India) to function as their escrow bank. Dream 11 uses RBL Banks UPI collection solution to facilitate payments for users of Dream 11. This is one of the key initiatives undertaken by the Bank to facilitate payments for merchants in the fantasy gaming space, which has evolved into a multi- million-dollar industry within a short span of time. The bank ensured compliance with all the internal as well as external regulatory guidelines, checks, and approvals, among others, before going ahead with this project.
The digital enablement allows RBL Bank to offer ~2000 tps for high-transacting merchants.
3.3.5 Merchant Acquiring
RBL Bank has a significant presence in the merchant acquiring space in the Indian ecosystem. It currently processes a through put of 15 billion dollars annually providing acquiring services to 20 lakh merchants.
3.3.6 Foreign Remittance Corridor Partnerships
The inward remittances to India in 2023 rose 12.3% to US$ 125 billion, accounting for 3.4% of its gross domestic product (GDP), according to estimates released by the World Bank. In 2022, Indias inward remittances stood at US$ 111.22 billion.
RBL Bank collaborates with large Exchange Houses to offer inbound and outbound remittance services. The Banks digital capabilities are well poised for solutioning
and to cater to the burgeoning cross border outward remittances business with these Exchange Houses. The co-created solution is an extremely comprehensive one as it brings together all electronic payment mechanisms to the common benefit, of the customers of Exchange House, through a single-window interface for remittances. The Bank has developed the remittance engine organically and the system now supports a scalable and customisable API- driven solution seamlessly with the partner platforms.
In summary, the Bank is currently enhancing its interface and overall user experience through a comprehensive upgrade of its infrastructure stack. To further support this transformation, a framework has been established that not only offers various integration kits for fintech but also integrates banking-particularly payment services- seamlessly into digital interactions via APIs. The Bank champions the use of technology as a competitive : advantage and strongly advocates for its adoption. At the
i core of its technological philosophy is the commitment to
; building a secure, scalable, and sustainable platform. This
; foundation enables the Bank to launch innovative products
i and improve its service delivery mechanisms to better
serve customers.
3.4 Branch Banking & Retail Liabilities (BBRL)
The Bank offers a complete suite of products through its , BBRL segment, supported by a multi-channel electronic
banking system, including Mobile Banking, Internet Banking, Phone Banking, WhatsApp Banking, and ATM.
The branches now serve as a Universal Bank Branch with multi-product offerings, including retail asset products, liabilities, digital products like debit cards, and QR, among others, whereas earlier branches were only doing liability business.
3.4.1 Deposit Profile & Granularisation
Branches are attuned to improve granular deposit accretion steadily. The Branch Banking now contributes 60% of bank i deposits. The Term Deposit (TD) book of below X2 crore
: grew by an impressive 28% year-over-year. The Bank aims
to expand to new geographies and continue to densify high deposit districts.
3.4.2 Assets & Liabilities Cross-sell as Business
The Bank has achieved remarkable success in asset crossselling within its BBRL unit, which accounts for 25% of disbursements in Home Loans and Loan against Property (LAP). All the branches are active in asset product sales and sourcing, bringing cost efficiency, higher productivity, and customer stickiness.
3.4.3 Digital Engagement Channels
Digital banking represents the fusion of the Banks forwardlooking vision and its capacity to leverage cutting-edge technology as an amplifier for setting new standards in customer satisfaction.
MoBank
• RBL MoBank app enables retail banking customers to avail 200+ products and services. It offers a user- friendly experience and a secure environment. The app now provides enhanced services like marking Positive Pay for cheques, enabling Tap & Pay for debit cards, and access to 21000+ billers to pay bills on the go.
Retail Internet Banking (RIB)
• RIB is the Banks web-based platform that provides a seamless and secure internet banking experience. The platform is now integrated with tax payment portals for direct taxes, GST & custom duty payments.
Diplomat App
• RBL Diplomat app is an extension of the MoBank app, tailored for customers in the Diplomatic segment. It facilitates foreign currency transactions and provides related services to meet the specific needs of this customer segment in a highly secure environment.
Corporate Internet Banking (CIB)
• CIB is a web-based platform for the Banks Current Account holders and entities. It enables corporate customers to avail of the maker-checker facility for payments, pay taxes online and avail of Sovereign Gold Bonds too on the platform.
BizBank
• RBL BizBank app is a mobile application for corporate customers to initiate and approve transactions on the go. Beneficiary management is now available on the mobile app.
WhatsApp Banking
• RBL Bank WhatsApp Banking (84335 98888) now enables customers to avail 13 services easily on this platform. Customers can now fetch their CIF (Customer ID) details, credit card reward points and nearest Branch/ATM details on WhatsApp.
• NRI customers have the option to get their internet banking transactions related to OTPs on WhatsApp too.
SMS Banking
• Services like balance enquiry, blocking of debit cards, and resetting the debit card PIN among others, is available via SMS. To avail, send HELP to 92233 66333.
Missed Call Service
• Missed call on 1800 419 0610 fetches the customers account balance.
3.4.4 Additional Services on Digital Channels
National Payments Corporation of India (NPCI) Initiatives
Unified Payment Interface (UPI) payments through the NPCI network, which allows customers to make individual and merchant payments through Mo-Bank by scanning UPI QR codes, are available 24x7. The Bank is certified by NPCI to offer these services, covering all utility payments.
eASBA
The Banks Application Supported by Blocked Amount (ASBA) facility allows customers to submit bid applications for their preferred IPOs/Rights Issues/FPOs/NFOs. They can continue to earn interest on their CASA balances until they receive an allotment in the applied issue. The Bank witnessed the highest number of applications during the year. Approximately 95% of the applications are submitted through eASBA, highlighting the value of the digital experience provided by the Bank.
Tax Payments
Customers can make GST Payments & Direct Tax Payments using RBL Banks Internet Banking & Branches. RBL Bank went live on TIN 2.0 in April 2023 and has processed customers Tax payments worth ~^3500 crore. Subsequently, later in the year, the Bank went live on GST Payment and processed GST payments worth ~^558 crore. Apart from adding an engagement service, Tax payments have added a new revenue line for the Bank.
3.4.5 New Product Initiatives
• ACE Deposits, launched on June 1, 2023, has seen significant success. This product, apart from higher granularisation, also brings sustainability to the deposit profile of the Bank.
• Plus Savings Account is a specialised account for asset customers with a NIL balance facility. This initiative aims to establish RBL Bank as the primary bank for all asset customers.
• Go Account is a subscription-based digital savings account offering a premium debit card, discount vouchers worth ^1,500, cyber fraud cover worth ^1 lakh, free CIBIL report, and unlimited transactions.
• RFC Fixed Deposit is a Resident Foreign Currency Deposit for returning NRIs. This product enhances RBL Banks Non-Resident product suite, ensuring that clients have access to necessary facilities and are encouraged to maintain a significant portion of their financial assets with RBL Bank.
• Gift City FCY Deposit NR is a global banking partner that invests in foreign currency in term deposits.
• The Bank launched 10 new digital onboarding journeys for retail customers, featuring Digital FD, Revamped Digital SA with Video KYC and Payment integration and Womans First Savings Account with curated Debit Card Option. Moreover, it includes Digital GO Savings account, Sachet Insurance such as Vector cover, Hospicash Policy, Cyber Insurance and OPD Insurance.
• Introduced digital functionality for LRS Remittances, enabling non-RBL Bank customers to remit up to $25,000 per day, with an annual maximum of $250,000 under the Liberalised Remittance Scheme (LRS).
3.4.6 Segments & Servicing
The Bank has strategically segmented its customer base to cater to their varied needs through three distinct groups: Insignia, Signature, and Aspire. This segmentation allows for a strong relationship and service model designed explicitly for High-Net-Worth Individuals (HNIs). The Insignia Preferred banking service stands out as the premium option for high-net-worth clients, featuring Dedicated Relationship Managers (RMs) and Service Managers, available across more than 380 branches. This service not only meets personal and business banking requirements
but also includes specialised services such as investments, insurance, forex, trade, and lending.
The programme for each segment is designed to offer a tailored, consultative, and personalised experience. Remarkably, 65% of the Branch Banking book by value is actively managed by RMs, representing the highest proportion in the industry.
3.4.7 Debit Cards
RBL Bank offers a range of debit cards across categories, namely Insignia Preferred Banking, Signature Banking, Aspire Banking, Enterprise, Signature+, Pinnacle, Crest, VISA Platinum, VISA Classic, Business First, Platinum First, Womans First, India Startup Club, GO, Next, Titanium and Rupay debit cards. These card variants are tailored for different customer segments, including High Net Worth Individuals (HNIs), salaried individuals, Small and Medium Enterprises (SMEs), and women customers. The Bank also facilitates a key value-added feature of 0% Markup on Overseas Transactions (Swipe/E-commerce) on Insignia Preferred Banking, Enterprise & Signature+ Debit Card.
During the FY 2023-24, overall spending on debit cards continued to increase by 10%, indicating a growing preference among customers.
The Bank has also introduced:
(i) GO Debit Card, which comes with a bouquet of offers, catering to customer preferences and enhancing the overall experience.
(ii) NEXT Debit Card, which offers a range of exclusive benefits and offers to cater to premium and government corporate salary customers.
RBL Bank stands out as the sole provider in India of foreign-currency debit card services tailored specifically for diplomats. Each card is uniquely designed to meet the particular needs of this distinct customer group.
3.4.8 Specialised Online Digital Remittance Platform under LRS
Under the Liberalised Remittance Scheme (LRS), RBL Bank has introduced a specialised online digital remittance platform for quick remittances. This platform allows money transfers in 16 different currencies with simplified documentation, the lowest cost in the market, competitive foreign exchange rates, and minimal or no bank charges. Additionally, the Bank does not apply extra processing fees for remitting educational funds, making it the preferred partner for the Education Remittance segment. The Bank offers various outward remittance products, including outward remittance, travel cards, demand drafts, and foreign currency.
3.4.9 Insurance
The Bank has collaborated with seven entities to provide a range of insurance products, including HDFC Life Insurance, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, Bajaj Allianz General Insurance, ICICI Lombard General Insurance, Aditya Birla Health Insurance, and Care Health Insurance. RBL Bank has launched the first phase of its Digital Bancassurance Platform, focusing on assisted journeys for customers. This initial phase aims to streamline the process of purchasing insurance through digital means, enhancing customer convenience and accessibility. In addition, the Bank plans to introduce a comprehensive 360-degree Insurance Service Platform shortly, which will provide a more holistic and integrated approach to insurance services, further elevating the customer experience.
3.4.10 Investments
RBL Bank collaborates with leading mutual fund houses to offer investment products such as Mutual Funds, Portfolio Management Services, and Alternative Investment Funds (AIF) through its Invest First++ digital platform. This platform allows customers to access market offerings through a unique 3-in-1 account offering, which includes an RBL Bank account, a trading account with IIFL Securities Limited (enabling trading in various financial instruments, including equity), and an RBL Bank Demat account, holding shares and other assets in dematerialised or digital format. The Bank has successfully migrated its Wealth Management System (WMS) across the entire bank, enhancing operational efficiency and customer experience.
By enabling Sovereign Gold Bond (SGB) subscriptions on Corporate Internet Banking (CIB), the Bank mobilised ^88 crore in SGB and related income. Additionally, the Bank expanded its investment product offerings by partnering with marquee mutual fund houses and portfolio management service (PMS) providers, thereby increasing market penetration and offering a broader range of investment options to its customers.
3.4.11 Important Channels and Client Segments Non-Resident Indians (NRI) Segment
RBL Bank offers a dedicated relationship management model and digital-first platforms to provide NRIs with a seamless and hassle-free banking experience. The Banks NRI customer base continues to grow across regions such as the GCC countries, the USA, the UK, Singapore, Hong Kong, Canada, and Australia. The number of Non-Resident (NR) clients engaging in foreign exchange transactions grew by 53%, surpassing 3,400 clients. Additionally, revenue from the NR segment increased by 40%.
Diplomats
RBL Banks Diplomatic segment includes embassies, high commissions, consulates, divisions (trade, defence, cultural, education, and tourism), UN/International Organisations and Diplomats/UN officials across India. It is the only bank in the country to have a dedicated, experienced team pan India, with an exclusive mobile app and structured product proposition for this segment. The Bank is a significant player in this sector, serving over 90 Diplomatic Missions, 93 Divisions and 73 Consulates/Divisions and approximately 1600+ diplomats from over 148 countries across India - Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bangalore, Thiruvananthapuram, and Pondicherry. The Bank also sourced its first-ever GIFT CITY FCY account from the Diplomatic segment, securing a fixed deposit of $1 million and $2 million Gift City Deposit from NRI customers.
Trusts Associations Societies & Clubs (TASC)
The TASC business is a significant contributor to the Banks growth in overall deposits. The business witnessed a healthy growth of 16% during the FY 2023-24. In the
coming FY 2024-25, the focus will be on catering to NGOs /Family Trust/Local Government bodies and Education institutions. Through the TASC unit, the Bank offers Structured Solutions, Payment Gateways, and CMS-related value-added products.
Startup-Club
This channel proposition is for the start-up ecosystem, offering state-of-the-art tech solutions through API stacks and support through incubators and accelerators.
3.5. Retail Assets
The Retail Assets business segment of the Bank comprises:
• Secured Loan Programmes
• Business Banking Group (BBG)
• Housing Loans
• Credit Cards
• Rural Vehicle Finance
• Microfinance
3.5.1 Secured Loan Programmes
RBL Bank has launched several new business lines, including Two-Wheeler Loans, Used Car Loans, Education Loans, Gold Loans, Affordable Home Loans, and Small LAPs. As part of the strategy, the Bank is focusing on expanding into semi-urban and rural markets with targeted product launches. It has shifted its distribution strategy to leverage the branch network and existing customers, reducing dependence on the DSA channel for secured loan sourcing.
For small and medium businesses, RBL Bank provides secured loans in the form of Loan Against Property (LAP).The Bank collaborates with Non-Banking Financial Companies (NBFCs) for co-lending secured business loans and offers working capital finance to clients through its branch network. In FY 2023-24, the Bank improved its portfolio quality by focusing on customers with higher credit scores and ensuring business is diversified across regions to mitigate concentration risk.
Key Highlights
• Affordable Home Loans and Small and Micro-LAPs reached close to ^100 crore in disbursements, which is likely to scale up considerably in the next year
• Rural Vehicle Finance continued growing with the addition of new states, including Andhra Pradesh and Telangana
• Used Tractor Finance contributed 20% of overall Tractor Finance
• The Bank introduced a new Loan Origination System for Secured Loans in phases, which has improved customer experience and enhanced productivity
3.5.2 Business Banking Group (BBG)
The Bank assists Micro, Small, and Medium Enterprises (MSMEs) in meeting their working capital and capital expenditure needs through sole banking arrangements primarily, provided via its branch network across various cities. The key products of Cash Credit, Overdraft, Term Loans, Export-Import Credit, Bill Discounting, Letter of Credit, Bank Guarantees, and more, with facilities secured through collaterals. Post-pandemic, additional financial support in the form of an Emergency Credit Line is being extended to existing customers to help them overcome challenging times. The Bank employs robust monitoring mechanisms to ensure the asset quality of its portfolio. In FY 2024-25, the Bank will focus on expanding its presence. The Bank successfully reduced NPAs from ^28 crore to ^20.4 crore, ensuring no additional accounts entered the NPA category. Profit growth was almost three times higher than last years ^8 crore. The Bank has built a strong team from scratch with very low attrition rates. The sourcing (around 65%) is primarily from the branch channel.
3.5.3 Housing Loans
RBL Bank provides housing loans with loan amounts ranging from a minimum of T7 lakh to Rs15 crore. The Bank will focus on growing the category with mark to market pricing, exclusive tie-ups with reputed builders, specific targeted campaigns towards the salaried segment, and established channel partners. It is currently sourcing housing loans through select liability branches, builder projects and business correspondent partner.
3.5.4 Credit Cards
RBL Banks credit card business is currently the sixth largest in the country, and the Bank also ranks sixth in terms of card spending. The Banks card portfolio has grown significantly, from 83,000 customers in FY 2015-16 to 5.23 million customers in FY 2023-24. This growth can be attributed to strategic partnerships, a diversified portfolio, and a strong customer experience.
Over the past year, the credit card business acquired approximately 2.27 million customers, holding a market share of 5.1%. The book size of credit cards including personal loans has grown to ^20,848.36 crore. The cards in force increased to 5.19 million in FY 2023-24. The Cards Division also witnessed one of the highest year-on- year growths in spends in the domestic industry during FY 2023-24, with total spends exceeding ^79,428.73 crore.
Key Product Developments & Process Enhancements
Current Products
• Millennial Products Cookies
• Mass Products Shoprite Platinum Delight
• Mass Affluent Products Platinum Maxima Plus World Safari
ICON
• Co-Branded Products BookMyShow Play PaizaBazaar Duet+
BankBazaar Save Max Pro LazyPay
PaizaBazaar Duet BankBazaar Save Max Super Card Multiple Variants
• Affluent Products Insignia
Co-Brand Partnership Update
RBL Bank is strengthening its market presence and delivering tailored financial solutions through strategic co-brand partnerships in the Credit Card segment. These partnerships leverage the combined strengths of the Bank and its partners to offer credit cards that meet the diverse needs of various customer segments.
Under the NBFC vertical, the Bank has partnered with Bajaj Finserv, while in the fintech space the RBL Bank has entered into partnerships with, LazyPay, Paisabazaar, Bankbazaar. com, and BookmyShow in the consumer space.
Commercial Card Programme
In FY 2023-24, RBL Bank launched its Commercial Cards Programme to meet the rising demand for digital solutions and efficient expense management in the corporate sector. This initiative is tailored to serve the diverse needs of mid to large corporates, startups, and SMEs. The programme features two distinct product variants:
• Corporate T&E Cards: Designed to streamline business travel and entertainment expenses, enhancing efficiency and control over corporate expenditure management.
• Corporate Purchase Cards: Engineered to simplify the digital procurement process, facilitate online subscriptions, and streamline utility payments, capturing digital spends across various business units within a corporate.
The Banks Commercial Cards Programme exemplifies innovation and adaptability, empowering businesses of all sizes to optimise their financial management and operational efficiency.
The Bank has crafted a phased channel expansion strategy to grow its commercial card business, segmented into three distinct phases:
• Phase 1: Targeting existing mid to large corporates
• Phase 2: Leveraging branch and other sales channels to source secured-card business
• Phase 3: Expanding unsecured business to new-to- bank (NTB) corporates through various channels, including co-brand and partnership opportunities
The Indian commercial card market, valued between $3040 billion, stands against the vast commercial payments landscape of $5-10 trillion, indicating significant underpenetration. Key opportunities include:
• Corporate Travel Market: Estimated at ~$32 billion, growing at 15% per annum
• Large Mid-Market Opportunity: Over 100,000
corporates, startups, and SMEs remain largely untapped, with low card penetration even among large corporates
• Digitisation of Recurring Payments: Digital ad spends have surpassed $4 billion, GSTN payment acceptance via cards is rising, and B2B utility payments are estimated at ~$80 billion
3.5.5 Rural Vehicle Finance
With farm mechanisation expanding consistently at a CAGR of over 255%, RBL Bank launched the Rural Vehicle Finance vertical in FY 2020-21 dedicated to funding farm equipment. In FY 2023-24, the Bank disbursed fresh loans amounting to ^1,322 crore to 27,910 customers, marking a growth of 52% over the previous year. As of March 2024, the existing book size was worth ^1,938 crore with an active customer base of 51,800, with most falling under the ambit of priority sector lending.
Product Offerings: This business focuses on funding new tractors, used tractors, harvesters, and farm equipment.
Customer Segment & Coverage: The Bank services small and medium farmers by assessing their incomes and bureau scores, covering all major tractor and farm equipment selling areas.
Channel Partners: Sourcing is done through a network of approximately 4000+ channel partners across 12 states, including new tractor dealers, Direct Selling Agents (DSAs), online partners, and local influencers. Plans are underway to extend these services to 1 more states during FY 2024-25.
Digital Lending Platform: Rural customers of the Bank experience digital services that match those of urban customers, with minimal documentation, transparency in transactions, and loan approvals and disbursements within 24 hours of application.
3.5.6 Microfinance
The Bank provides microfinance services in rural/semi-rural areas, focusing on segments that lack access to traditional banking.
These services encompass credit facilities for women borrowers, along with savings accounts and life and general insurance products to facilitate financial inclusion.
The Bank promotes financial inclusion by extending credit to female borrowers and organising financial education programmes to enhance financial literacy. These activities are aimed towards improving the quality of life of poor women folk by honing their entrepreneurial skills.
• During FY 2023-24, the Banks training partner Arunodaya Sarveshwari Lok Kalyan Samiti in Madhya Pradesh, conducted 266 training sessions in all, benefitting 3,138 individuals.
3.6. Treasury & Markets
The Treasury and Markets function includes various components such as domestic markets, treasury sales, debt capital market, and bullion sales.
Domestic Markets
The Domestic Markets Group is responsible for managing the Banks funds on a daily basis, which includes maintaining key regulatory ratios such as the net stable funding ratio (NSFR), liquidity coverage ratio (LCR), statutory liquidity ratio (SLR), and cash reserve ratio (CRR). This group strategically invests the Banks liquidity in high-quality securities to maximise earnings. It takes proprietary positions in rates, equities, and currency trading based on the investment and risk framework set by the Board of the Bank. In FY 2023-24, the Bank ventured into investments in SME IPOs and has been able to generate healthy trading profits.
Securities Trading
The Bank operates a proprietary desk that specialises in interest rate trading. This desk is involved in trading government bonds, corporate bonds, and interest rate swaps. Throughout FY 2023-24, although the RBI kept policy rates on hold, the rates market experienced increased volatility due to fluctuations in CPI inflation data, crude oil prices, and geopolitical tensions, among others. The year commenced with a bullish sentiment in bond markets, as the IGB 10-year bond yield softened by 36 bps to 6.95%
in the initial weeks. However, macro-economic and global conditions led to a subsequent rise in yields, peaking at 7.40%. Eventually, yields softened and closed at 7.05% by year-end, driven by positive developments such as the inclusion of IGB in global bond indices, easing CPI inflation, pausing of rate hikes by the US Federal Reserve, and a reduction in budgeted fiscal deficit for FY 2024-25. The Banks trading desk took advantage of the volatility in fixed- income markets, robust listings in equity primary markets and managed proprietary positions appropriately, which led to healthy trading profits.
Liquidity Management
The Bank remains committed to maintaining adequate levels of liquidity and contingency buffers in the light of relatively tighter liquidity conditions prevailing in the banking system. During FY 2023-24, the overnight rates remained elevated, well above the policy repo rate, keeping the overall funding market challenging. Throughout the year, the Bank successfully secured funding from various sources through strategic selection of liabilities. The Bank consistently maintained a healthy liquidity coverage ratio (LCR), achieved through a judicious mix of longterm granular deposit mobilisation and rupee borrowings via refinancing from various financial institutions. These measures contributed to increasing the strength and stability of the Banks balance sheet. The Bank continued the use of derivatives to hedge the interest rate risk associated with assets and liabilities.
Capital Markets
The Capital Markets team is responsible for delivering services across Debt Capital Markets (DCM), Loan Syndication, and Structured Finance (SF) distribution businesses. They collaborate closely with asset managers, insurance companies, other banks, and investors to comprehend their needs. The team originates transactions and facilitates the sell-down of underwritten transactions.
Debt Capital Markets (DCM)
The Debt Capital Markets (DCM) desk is engaged in advisory services to large and mid-sized corporate issuers looking to raise debt finance through the capital markets route. In FY 2023-24, the Bank successfully closed transactions, providing tailored solutions to clients, generating fee income for the Bank. The activities undertaken by the team include structuring, underwriting, and distributing bonds, loans, asset-backed securities, and other financial products to a
diverse range of investors, including Non-Banking Financial Companies (NBFCs), mutual funds, insurance companies, banks, wealth clients, and others.
Structured Finance & Debt Syndication
The debt syndications and structured finance business has established a strong reputation for its loan distribution capabilities. In FY 2023-24, the team effectively managed several debt issuances for its mid-sized corporate clients, with diverse product offerings, including working capital, greenfield and brownfield projects, structured term loans, and infrastructure finance. The team has relationships across financial markets, particularly with other public and private sector Banks, Non-Banking Financial Companies (NBFCs), Developmental Financial Institutions (DFIs), Infrastructure Debt Funds (IDFs), and other key players. Throughout the year, the team has also made substantial contributions to the foreign currency loan book housed at the GIFT City branch.
Foreign Exchange, Derivatives and Bullion Business
Foreign exchange and Derivatives desk offers various hedging products, including interest rate swaps, currency swaps, options and currency derivatives on both Deliverable and Non-Deliverable basis to facilitate effective risk management for foreign currency and interest rate
exposures faced by clients. A team of seasoned Treasury professionals provide advisory services to corporate, institutional, commercial banking, and consumer banking customers, including individuals, residents, and nonresidents. The desk earns a fee income generated from transactions that customers undertake with the Bank while managing their foreign exchange and interest rate risks. While the Treasury dealing room is in Mumbai, Treasury Sales professionals are present across all prominent metro locations in the country to cater to the clients needs.
In FY 2023-24, the Bank continued to grow its client derivative business through market products like lurrency swaps, Long tenor FX options, single currency interest rate swaps, and many more. The Bank could also leverage its IBU Balance Sheet for certain client loans and allied hedges. Given the turn in the rate cycle, the Bank witnessed heightened activity in Interest Rate Derivatives from clients especially to protect their borrowing costs in USD or EUROs. The Bank managed to handle some large marquee deals in FY 2023-24, with the largest being a $500 ECB loan hedge for an infrastructure company, amongst others.
All derivatives concluded with the clients are backed by appropriate credit limits set up in the Treasury systems after a thorough credit profiling of the clients. All customer deals are covered in the interbank market on a back-to-back basis.
The Bank is among the authorised banks licensed by the Reserve Bank of India to Import Gold and Silver. It has been undertaking this business on a consignment basis for its bullion clients and is a significant supplier of bullion in the domestic market. The imports are typically on a back-to- back basis and are priced to the customer based on the price quoted by the supplier and the local levies related to the consignment like custom duty. The Bank earns income on such wholesale bullion transactions, which is recognised on a settlement basis.
The Bank also deals in bullion on a borrowing and lending basis, and the interest paid/received thereon is classified as interest expense/income, respectively. The bullion business involves importing gold on metal loans for domestic manufacturers as well as Exporters of Gold Jewellery. In FY 2023 -24, the Bank continued to grow its Gold Metal Loan book by supporting domestic jewellery manufacturers.
4. RBL BANKS FINANCIAL OVERVIEW
| Particulars | FY 2023-24 | FY 2022-23 | % Change |
| Net Interest Income | 6,043 | 4,998 | 20.9% |
| Non-Interest Income | 3,043 | 2,490 | 22.2% |
| Operating Revenue | 9,086 | 7,488 | 21.3% |
| Operating Expenses | 6,055 | 5,285 | 14.6% |
| Operating Profit | 3,031 | 2,203 | 37.6% |
| Provisions and Contingencies | 1,779 | 1,022 | 74.1% |
| Profit before Tax | 1,252 | 1,181 | 6.0% |
| Taxes | 84 | 298 | (71.8%) |
| Profit after Tax | 1,168 | 883 | 32.3% |
Note - The Bank has been historically netting off charges paid to BCs from Interest Income. For better presentation, the Bank reclassed charges paid to BCs from the Interest Income line to Operating Expenses in FY 2023-24. Accordingly, FY 2022-23 numbers have also been reclassed for comparison.
Operating Revenue increased by 21.3% year-over-year, rising from ^7,488 crore to ^9,086 crore in FY 2023-24. Similarly, Net Interest Income (NII) saw a 20.9% year- over-year increase, moving from ^4,998 crore to ^6,043 crore during the same period. Non-interest income, which includes fee income, trading income, and other income, grew by 22.2% year-over-year from ^2,490 crore to ^3,043 crore in FY 2023-24.
Operating expenses rose by 14.6% year-over-year to ^6,055 crore in FY 2023-24, as the Bank continued to invest in expanding its distribution network, enhancing technology, and scaling up existing retail products along with launching new secured retail products.
Operating Profit grew 37.6% to ^3,031 crore from ^2,203 crore in FY 2022-23.
Provisions and contingencies, reflecting normal business operations, increased by 35.3% year-over-year, from
Rs1,022 crore in FY 2022-23 to n,383 crore in FY 202324. Additionally, in FY 2023-24, the Bank set aside a contingency buffer for credit cards, microfinance, and personal loans at 100 basis points, totaling ^282 crore, and a contingent provision for AIF investments as mandated by RBI guidelines, amounting to Rs114 crore. Including these amounts, total provisions and contingencies saw a 74.1% year-over-year increase from ^1,022 crore in FY 2022-23 to n,779 crore in FY 2023-24.
The Bank reported a Profit after Tax of ^1,168 crore for the year as compared to ^883 crore in FY 2022-23.
4.1 Net Interest Income
| Particulars | FY 2023-24 | FY 2022-23 | % Change |
| Interest Earned | 12,394 | 9,677 | 28.1% |
| Interest/Discount on Advances/Bills | 9,978 | 7,679 | 29.9% |
| Income on Investments | 2,034 | 1,626 | 25.1% |
| Other Interest Income | 382 | 372 | 2.7% |
| Interest Expended | 6,351 | 4,679 | 35.7% |
| Interest on Deposit | 5,344 | 4,006 | 33.4% |
| Other Interest Expense | 1,007 | 673 | 49.6% |
| Net Interest Income | 6,043 | 4,998 | 20.9% |
| Particulars | FY 2023-24 | FY 2022-23 |
| Average Interest Earning Assets (Rs in crore) | 110,020 | 95,395 |
| Average Interest Earning Advances (Rs in crore) | 71,431 | 60,281 |
| CASA (Rs in crore) | 36,449 | 31,717 |
| Yield on Interest Earning Assets (%) | 11.3 | 10.1 |
| Yield on Advances (%) | 14.0 | 12.7 |
| Yield on Investments (%) | 6.7 | 6.2 |
| Cost of Funds (%) | 6.4 | 5.4 |
| Cost of Deposits (%) | 6.2 | 5.3 |
| Net Interest Margin (%) | 5.5 | 5.2 |
| Average LCR for the Year (%) | 135 | 144 |
Net Interest Income (NII) experienced a year-over-year increase of 20.9%, growing from ^4,998 crore in FY 2022-23 to ^6,043 crore in FY 2023-24. In FY 2023-24, NII accounted for 66.5% of the total Operating Revenue, slightly down from 66.7% in the previous fiscal year.
During this period, the yield on interest-earning assets rose from 10.1% to 11.3%. Specifically, the yield on advances
surged by 123 basis points from 12.7% in FY 2022-23 to 14.0% in FY 2023-24, while the yield on investments increased by 46 basis points.
The cost of funds also saw an increase, rising by 98 basis points from 5.4% in FY 2022-23 to 6.4% in FY 2023-24. The Bank remained focused on enhancing the contribution of retail deposits, improving the granularity and tenure of deposits, and maintaining robust liquidity levels. Consequently, the cost of deposits rose from 5.3% to 6.2% over the FY 2023-24.
CASA deposits witnessed a 14.9% increase, climbing from ^31,717 crore in FY 2022-23 to ^36,449 crore in FY 2023-24.
Cash and balances with the Reserve Bank of India were higher, as the Bank needed to maintain an increased CRR balance due to a rise in deposit balances. Additionally, the Bank managed excess liquidity from higher inflows of wholesale deposits by deploying it with the RBI in Reverse Repo.
Advances
| Particulars | As of March 31, 2024 | As of March 31, 2023 | YoY | % of Advances |
| Wholesale Banking | ||||
| Corporate Banking | 25,725 | 24,643 | 4.4% | 30.6% |
| Commercial Banking (Mid Corporates & SME) | 9,115 | 7,788 | 17.0% | 10.9% |
| Wholesale Banking Total | 34,840 | 32,431 | 7.4% | 41.5% |
| Retail Banking | ||||
| Credit Cards | 17,038 | 13,311 | 28.0% | 20.3% |
| Personal Loans | 3,888 | 3,419 | 13.7% | 4.6% |
| Microfinance | 7,511 | 5,962 | 26.0% | 8.9% |
| Business Loans | 8,161 | 7,225 | 13.0% | 9.7% |
| Housing Loan | 6,260 | 4,501 | 39.1% | 7.5% |
| Rural Vehicle finance | 2,221 | 1,029 | 115.8% | 2.6% |
| Others incl. Gold Loans, OD etc. | 2,347 | 974 | 141.0% | 2.8% |
| Retail Agri | 1,721 | 1,357 | 26.8% | 2.0% |
| Retail Banking Total | 49,147 | 37,778 | 30.1% | 58.5% |
| Total | 83,987 | 70,209 | 19.6% | 100% |
Total advances of the Bank as on March 31, 2024, increased 19.6% to t83,987 crore from t70,209 crore as on March 31,2024, largely driven by growth in the Commercial Banking segment within Wholesale Banking and Credit Card, Microfinance, Housing, Business Loans, Rural Vehicle Finance and Gold Loan segments within Retail Banking.
Retail advances comprised 58.5% of total advances and grew 30.1% to t49,147 crore, Wholesale Advances comprised 41.5% of total advances and grew by 7.4% to t34,840 crore.
Credit cards remained the largest Retail Banking segment and accounted for 20.3% of total advances, Personal Loans 4.6%, Microfinance 8.9%, Business Loans 9.7%, Housing Loans 7.5%, Rural Vehicle Finance at 2.6%, Retail Agri 2.0%, and others (incl. Gold Loans, and OD, among others) accounted for 2.8%.
Investments
| Particulars | As of March 31, 2024 | As of March 31,2023 | % Change |
| Government Securities | 28,519 | 26,296 | 8.5% |
| Debentures & Bonds | 550 | 1,037 | (47.0%) |
| Money Market/ Equities/Mutual Funds | 272 | 1,119 | (75.7%) |
| Subsidiaries | 145 | 145 | - |
| Others | 90 | 278 | (67.6%) |
| Total | 29,576 | 28,875 | 2.4% |
The investment portfolio of the Bank grew 2.4% to t29,576 crore. Investments in government securities, increased 8.5% to t28,519 crore.
Money Market/Equities/Mutual Fund investments decreased 75.7% to t272 crore in FY 2023-24. As on March 31, 2024, the Bank classified 78.3% of the total government securities in the Held To Maturity category, and Bonds and Debentures portfolio was classified in the Available For Sale category.
4.2 Other Assets
Other assets of the Bank as on March 31, 2024 increased from t7,698 crore to t9,920 crore as on March 31, 2023, primarily on account of increase in RIDF Deposits.
4.3 Liabilities and Shareholders Funds
| Particulars | As of March 31, 2024 | As of March 31,2023 | % Change |
| Capital | 605 | 600 | 0.8% |
| Reserves and Surplus | 14,191 | 12,977 | 9.4% |
| Total Shareholders Funds | 14,796 | 13,577 | 9.0% |
| Deposits | 103,494 | 84,887 | 21.9% |
| Current Account Deposits | 18,393 | 14,795 | 24.3% |
| Saving Account Deposits | 18,056 | 16,922 | 6.7% |
| CASA | 36,449 | 31,717 | 14.9% |
| Term Deposits | 67,045 | 53,170 | 26.1% |
| Borrowings | 14,184 | 13,331 | 6.4% |
| Other Liabilities and Provisions | 5,958 | 4,081 | 46.0% |
| Total | 138,432 | 115,876 | 19.5% |
4.4 Shareholders Funds
Shareholders funds of the Bank increased from t13,577 crore as on March 31, 2023 to t14,796 crore as on March 31, 2024, primarily on account of the profit reported by the Bank in FY 2023-24.
4.5 Deposits
The total deposits of the Bank increased by 21.9% to t103,494 crore against t84,887 crore last year. Savings Bank deposits reported a growth of 6.7% to t18,056 crore, while Current Account deposits reported an increase of 24.3% to t18,393 crore. Overall, CASA deposits increased to t36,449 crore, and constituted 35.2% of total deposits as compared to 37.4% last year.
4.6 Borrowings
The total borrowings of the Bank increased 6.4% from t13,331 crore in FY 2022-23 to t14,184 crore in FY 2023-24, primarily on account of an increase in refinance borrowings from EXIM & SIDBI, an increase in long-term FCY borrowings partially offset by decrease in overnight Repo borrowings.
4.7 Capital Management
The Bank ended FY 2023-24 with a robust capital position. The Banks overall capital adequacy ratio (CAR) under Basel III stood at 16.18% at the end of the year, well above the benchmark requirement of 11.50% stipulated by the Reserve Bank of India (RBI). Of this, the Common Equity Tier I (CET I) CAR was 14.38% [against minimum regulatory 8.00%] and Tier I CAR was 14.38% [against the regulatory requirement of 9.50%]. As on March 31, 2024, the Banks Tier II CAR under Basel III stood at 1.80%.
The following table sets forth the capital, risk-weighted assets and capital adequacy ratios computed as on March 31, 2024 and March 31, 2023, in accordance with the applicable RBI guidelines under Basel III.
| Particulars | As of March 31, 2024 | As of March 31,2023 |
| Total Risk-Weighted Assets And Contingencies (t in crore) | 98,630 | 85,138 |
| Total Capital Adequacy Ratio (%) | 16.18% | 16.92% |
| Of which | ||
| Common Equity Tier I Capital Ratio (%) | 14.38% | 15.25% |
| Tier I Capital Ratio (%) | 14.38% | 15.25% |
| Tier II Capital Ratio (%) | 1.80% | 1.67% |
The movement in capital position for FY 2023-24 was as below:
| Particulars | As of March 31, 2024 (t crore) | CRAR (%) |
| Capital Position as of March 31, 2023 | 14,408 | 16.92 |
| Increase due to Profit in FY 2023-24 | 1,168 | 1.18 |
| Others | 382 | 0.39 |
| Decrease on Account of Consumption in FY 2023-24 | 2.31 | |
| Capital Position as of March 31, 2024 | 15,958 | 16.18 |
5. RISK MANAGEMENT FRAMEWORK
5.1 Risk Report
Effective risk management is crucial for the Bank to achieve sustainable growth. The Banks Risk Management Framework is built on a robust risk culture and a commitment to total compliance. It ensures that all risks to the Banks business sustainability are thoroughly understood and appropriate measures are in place to monitor, mitigate, and control these risks. The Framework encompasses key elements such as a) risk taxonomy, b) risk appetite, c) risk culture, and d) risk governance.
5.2 Risk Taxonomy
The Banks risk taxonomy categorises the types of risk that the Banks business may encounter. This classification considers external factors such as the macroeconomic environment, disruptive technologies, environmental, social, and governance (ESG) factors, climate risks, legislation, and regulations. It also considers internal factors such as people, processes, systems, balance sheet, products, clients, reputation, and behaviour, among others. The Bank has implemented various processes to identify emerging risks, which are then analysed and classified accordingly.
Three Lines of Defence Model
The Bank adheres to the industry-standard three lines of defence model for risk management, which helps clearly delineate responsibilities between risk takers and different internal control functions. The first line of defence is management within each business or function, which operates its business within a set risk appetite. The second line consists of dedicated departments that provide the Framework for this risk appetite. The third line of defence is the Internal Audit authority, which evaluates
the effectiveness of governance processes and outcomes, compliance with internal policies and regulatory guidelines, as well as management and control processes. The Internal Audit Authority also coordinates with external auditors and regulators.
5.3 Risk Appetite
Risk appetite refers to the level of risk that a bank is willing to accept in its pursuit of business growth. The Bank is committed to maintaining a moderate risk profile, which is regularly assessed. At the highest level, the Banks Board of Directors approves the risk appetite statement, which sets acceptable risk boundaries and drives the Banks business strategy.
The Chief Risk Officer (CRO) assists and reports to the Risk Management Committee of the Board (RMCB), a Board sub-committee, in fulfilling their risk oversight responsibilities. The CRO establishes ongoing risk management practices suitable for the size and scale of the Bank and escalates identified or emerging risk exposures to the Management and the Board. However, the CRO does not have discretionary authority to approve any transaction.
The adherence to the risk appetite, breaches, corrective actions, outlook, and glide path are discussed by the Executive Risk Committee, the Risk Management Committee of the Board, and the Board on a quarterly basis through the Enterprise Risk Management report.
5.4 Risk Culture
The Bank has established an institutional framework to ensure that all employees understand the importance of prioritising risk and compliance as integral elements of its risk culture. The Bank utilises a Target Operating Model Framework to manage credit concentration risks and transition towards a risk-based approach (linked to internal credit rating) for credit origination, underwriting, and exposure management. This framework is designed to achieve the Banks desired/target risk profile and includes risk appetite thresholds/tolerance levels, Key Risk Indicators (KRIs) for various businesses, segments, products, and more. These are supported by continuous communication, awareness, education, and training initiatives. Management Key Performance Indicators (KPIs) guide these efforts to instil the broader objective that risk mitigation is a shared responsibility for everyone.
5.5 Risk Governance
5.5.1 Risk Management Committees
The Risk Management Committee of the Board (RMCB) oversees the risk management function of the Bank. It formulates policies, processes, systems, and strategies for monitoring and managing various risks, including credit risk, market risk, concentration risk, liquidity risk, interest rate risk, operational risks, regulatory and compliance risks, third-party risk, reputation risk, cyber risk, and others. The RMCB is supported by several executive committees, including:
• Executive Risk Committee (ERC)
• Management Credit Committee (MCC)
• Asset Liability Management Committee (ALCO)
• Product Approval Committee (PAC)
• Operational Risk Management Committee (ORMC)
• Retail Risk Management Committee (RRMC)
• Business Operations & Technology Steering Committee (BOT)
• Compliance Implementation Committee (CIC)
• Environmental & Social Risk Governance Committee (ESGC)
• The Information Security Steering Committee (ISSC)
The ORMC and RRMC report to the ERC, which oversees the overall risk management framework and ensures alignment with the Banks risk appetite and strategy.
The Board Investment and Credit Committee (BICC) oversee the Banks treasury investment performance and approves credit and investment proposals in line with the Banks credit policy. The IT Strategy Committee of the Board oversees the overall IT strategy of the Bank, including cybersecurity risk. It establishes policies and procedures related to cyber security and is supported by the Information Security Steering Committee (ISSC), an executive committee. Details and brief terms of reference of the various executive committees:
• The Executive Risk Committee (ERC) is tasked with identifying, monitoring, and managing current and emerging risks at the enterprise level. It also plays a key role in developing the Banks risk appetite statement. The ERC assesses the adequacy of the enterprise risk management framework, policies, and procedures and makes recommendations on various aspects, such as standards for presenting credit proposals, financial covenants, ratings, prudential limits on large credit exposures, and collateral standards for loans.
• The Management Credit Committee (MCC) is responsible for implementing the credit policy and credit framework approved by the Board and the Risk Management Committee of the Board (RMCB) for both retail and wholesale banking businesses.
• The Banks Asset Liability Management Committee (ALCO) is responsible for managing market risks, liquidity risk, interest rate risk in the banking book, currency risk, funding policy, and the pricing of deposits and advances.
• The Product Approval Committee (PAC) is a cross-functional committee consisting of senior management members. It is responsible for reviewing and approving all new products and service offerings, as well as periodically reviewing existing products.
• The Operational Risk Management Committee (ORMC) is a cross-functional committee of senior management responsible for overseeing operational risk management across the Bank. It establishes an appropriate operational risk management framework.
• The Retail Risk Management Committee (RRMC) is responsible for overseeing the risks associated with the retail credit portfolios of the Bank. It reports to the Executive Risk Committee (ERC).
• The Business Operations & Technology Committee (BOT) is responsible for approving and overseeing strategic and new operations and technology projects. It ensures that these projects are aligned with the Banks strategy and manages IT-related risks.
• The Compliance Implementation Committee (CIC) oversees regulatory compliance within the Bank.
• The Environmental & Social Risk Governance Committee (ESGC) oversees the implementation of the environmental and social risk management system across the Bank.
• The Information Security Steering Committee (ISSC) ensures the adequacy of information security policies, standards, and procedures. It also ensures that the Bank is fully prepared to address all types of technology threats.
5.5.2 Risk Management Policies
The Banks Enterprise Risk Management (ERM) policy is based on best practices and outlines its principles regarding risk-taking and risk management. The Risk Appetite Framework, Internal Capital Adequacy Assessment Process (ICAAP), and Stress Testing framework are key components of this policy.
Additionally, the Bank has various other policies that govern different aspects of its operations, including:
• Liquidity Risk & Asset Liability Management (ALM) Policy
• Credit Policy
• Investment Policy
• Liquidity and Contingency Plan
• Market Risk Policy
• FX & Derivatives Policy
• Customer Suitability and Appropriateness Policy
• Internal Control Policy
• Recovery Policy
• KYC and AML Policy
• Operational Risk Management Policy
• Risk-based Internal Audit Policy
• Sustainability Policy
• Cyber Security Policy
• Information Security Management Policy
These policies collectively ensure that the Bank adheres to regulatory requirements, manages its risks effectively, and operates in a sustainable and secure manner.
5.5.3 Risk Management System
The Bank has a robust framework for communicating risk Management Information System (MIS) to its
senior executives and risk committees. This is done through dashboards and reports that provide portfolio- level risk aggregates covering credit risk, market risk, operational risk, liquidity risk, and interest rate risk, among others. These reports are reviewed by the Board, Risk Management Committee of the Board (RMCB), other risk committees, and senior management on an ongoing basis.
5.6 Risk and Mitigation
5.6.1 Capital Adequacy Risk
The Bank maintains a strong capital position with capital ratios well above the thresholds defined by the regulator.
5.6.2 Credit Risk
In a banks portfolio, losses can occur due to outright default or the inability or unwillingness of a customer or counterparty to meet commitments regarding repayments, trading settlements, or other financial transactions. Losses can also arise from a reduction in collateral value. The Banks credit policies outline the sanction and monitoring procedures for various categories of loans, with separate credit origination and appraisal processes for Wholesale and Retail segments.
In the Wholesale segment, the Bank has a well-defined system of delegation of financial powers duly approved by the Board of the Bank, to sanction/approve credit facilities. All credit facilities are duly sanctioned by the designated sanctioning authority/committee. Additionally, the Bank has implemented the Target Operating Model (TOM) to manage concentration risks such as counterparty, borrower group, and tenor risks. TOM is defined for different client segments based on internal risk ratings and other risk parameters. The Independent Credit Rating (ICR) function conducts internal ratings for the Wholesale segment independently of the credit and business functions. The ICR facilitates informed credit decision-making by quantifying credit risk consistently, reliably, and validly, making it easier for credit- approving authorities to evaluate the creditworthiness of borrowers.
The Retail segment primarily relies on standardised product programmes for credit risk assessment and approvals. The Bank also monitors credit concentration in exposures to single borrowers, groups of borrowers, sensitive industry exposures, geography, and product types, among other factors. Portfolio reviews for both Wholesale and Retail segments are conducted regularly.
5.6.3 Market Risk
The Bank manages market risk in line with its Board- approved policies, including the investment policy, market risk management policy, foreign exchange and derivatives policy, and customer suitability and appropriateness policy. The Market Risk Policy identifies all risk factors arising from Treasury activities and defines limits at both the position/ product and portfolio levels, in line with the Boards risk appetite.
The investment policy specifies the instruments permitted for investment and sets prudential limits for different categories of instruments. The Bank has established the necessary infrastructure in terms of systems and risk management processes.
5.6.4 Liquidity Risk
The Bank places significant emphasis on managing funding liquidity risk, considering it the most critical risk. It has a comprehensive Liquidity Risk & Asset-Liability Management (ALM) policy that incorporates RBI guidelines and industry best practices. The Bank maintains a Liquidity Coverage Ratio (LCR) as per RBI guidelines and has established a mechanism for short-term dynamic liquidity and contingency planning as part of its liquidity risk management. The Contingency Funding Plan (CFP), approved by the Board, outlines the process for addressing crises in the event of a liquidity crunch or a run on the Bank.
5.6.5 Compliance Risk
The Bank has an independent Compliance function dedicated to effectively managing compliance risk. The Chief Compliance Officer reports directly to the Board of Directors. The Bank maintains a zero-tolerance approach to compliance breaches and has incorporated adherence to regulatory and internal guidelines into its Code of Conduct, which all employees are required to sign during enrolment. The Bank has also adopted a code for the prevention of insider trading, applicable to its Board members and employees, as well as their dependent family members. The Company Secretary, under the supervision of the Managing Director and CEO, is responsible for establishing policies and procedures and monitoring compliance with rules related to the disclosure of price-sensitive information.
5.6.6 Cyber Security Risk
The Bank has strong policies, procedures, controls, and monitoring tools in place to handle and reduce cybersecurity risks. This framework addresses personnel, processes, and technology. The Bank has a cybersecurity policy and
an information security management policy approved by the board. Additionally, the Bank has a solid cyber crisis management plan to set out a strategic framework and actions for preparing for, responding to, and recovering from a cyber incident if one were to occur.
5.6.7 Digital Risk
The Bank has a separate Digital Risk function to manage and mitigate risks related to the unintended consequences of digital transformation. The Digital Risk team reviews PAC notes, SOPs, BRDs, loss data, fraud data, new business partnerships, provisions, customer complaints, internal audit reports, and more. Additionally, it is responsible for transaction monitoring for payment products.
5.6.8 Environment & Social Risk Management (E&S)
RBL Bank has made a strategic commitment to sustainable development, integrating it into its business practices, including risk management. Oversight and updates on environmental and social risks are provided by the Environmental and Social Risk Governance (ESG) Committee to the Board. The Bank has established a comprehensive ESG framework with several key objectives:
• Establishing strategic environmental and social objectives, such as developing new offerings that promote environmental and social sustainability
• Integrating environmental and social risk
considerations into all financing activities and raising client awareness on this topic
• Excluding clients whose business activities do not align with the Banks principles, utilising the IFC Exclusion List
• Communicating environmental and social expectations to all employees, clients, and external stakeholders
• Continuously improving employees ability to identify environmental and social risks
• Creating and offering financial products and services that support more sustainable agricultural practices and contribute to resource conservation and efficiency
• Implementing microbanking programmes for marginalised and economically weaker sections in various states across the country
Environmental and social risk assessment is an integral part of the credit appraisal and sanction process. All transactions undergo screening against an exclusion list, which includes activities such as weapons and munitions production or trade, production or trade in alcoholic beverages excluding beer and wine, production or trade in tobacco, and activities related to gambling and casinos, among others.
These activities are screened for environmental and social (E&S) risks according to the Banks Environmental and Social Management System, which is based on the International Finance Corporations (IFC) Performance Standards (PS). The Bank engages with clients to conduct thorough E&S due diligence, which includes identifying, assessing, and mitigating potential E&S risks, including those related to climate change. If significant unmitigated
risks are identified, the Bank requires the client to address them within a specified timeframe through a Corrective Action Plan (CAP), which is mutually discussed and agreed upon. These actions are also incorporated into the legal documentation with the client, and the CAPs are tracked and monitored by the Bank.
5.6.9 Climate Risk
As a part of E&S Risk assessment, the Bank assesses climate-related risks and runs it through a mandatory probabilistic tool to identify and evaluate any physical climate change risks. It covers extreme weather-related events like floods, draughts, storms, landslides, and more. A risk score is generated, and relevant business and credit teams flag all high-risk cases. The Bank also focusses on transition risks by identifying Borrowers that are: (a) Overly dependent on water or energy for operations; (b) Sectors facing market pressure towards transitions; and (c) Sectors with supply chains that could be adversely affected due to climate-related transition risks.
In August 2022, the Bank had joined the Task Force on Climate-related Financial Disclosures (TCFD) as a supporter. The TCFDs recommendations are based on four pillars: governance, strategy, risk management, and metrics and targets. Mandated by the Financial Stability Board, the TCFD aims to enhance market transparency. The Reserve Bank of India (RBI) has also developed a Draft Disclosure Framework on Climate-related Financial Risks, 2024 based on these four pillars.
The Bank has a dedicated Environmental and Social (E&S) expert group within the risk team. This group provides tools and templates to assist transaction teams in conducting E&S due diligence. It also reviews E&S due diligence reports prepared by transaction teams to ensure quality standards. The Group provides Senior Management and the Board with updates on E&S risks at regular intervals.
RBL Bank has successfully implemented a Coal Policy after extensive consultations with stakeholders and securing Board approval. Under the policy, the Bank has implemented an exposure cap for financing coal-based thermal power generation with a target to reduce it to zero by FY 203334. Additionally, the Bank has rolled out tighter portfolio caps for high carbon-emitting sectors, also following Board approval. In FY 2023-24, the Bank has implemented exposure limits for carbon-intensive sectors including: Thermal Power Generation (coal and gas); Oil and Gas; Iron and Steel; Cement; Aluminium; Coal Mining; and Lime.
The Bank has finalised a Carbon Neutrality Plan, aiming to achieve carbon-neutral status from its operations by FY 2033-34.
RBL Bank received a CDP rating of B- (Management Band), indicating that the Bank is taking coordinated action on climate issues. This rating is higher than the global average (C) and the average for the Asia region (C) in the Financial Services sector.
For more details on E&S Risk Assessment, please refer to the Natural Capital section of this report.
5.6.10 Operational Risk
Operational Risk arises from insufficient or malfunctioning internal processes, personnel, and systems or from external occurrences, including legal risks. The Banks reliance on technology exposes it to potential errors, fraud, or unforeseen events that could lead to unexpected losses. The Bank has an Operational Risk Management Policy approved by the Board. The Operational Risk Management Committee (ORMC) establishes the Operational Risk Management (ORM) framework in accordance with the ORM Policy and oversees the Banks operational risk activities. The operational risk management process includes several components, such as:
• New Product Approval Process
• Risk and Control Self-Assessment (RCSA/RCM)
• Key Risk Indicators (KRIs)
• Operational Loss Events (Loss & Near Miss cases)
• Control Issues & Actions
The Bank has also implemented a Third-Party Risk Management Governance Framework for screening third parties, which may be referred to as vendors, suppliers, partners, contractors, or service providers. Key metrics used for measuring operational risk include:
• Operational Losses
• Total Gross Operational Loss
• As a Percentage of Capital
• As a Percentage of Revenues
• Key Risk Indicators (KRIs)
• High-Risk Open Actions Ageing
These metrics are monitored at the individual business/ support unit level, aggregated at the Bank level, and compared against the Banks established risk appetite.
5.6.11 Model Risk
The Bank maintains an inventory of retail and non-retail models, outlined in the Enterprise Risk Management (ERM) Policy, which are increasingly used across the banking sector for strategic decision-making. The success of financial models relies significantly on judgment and expertise, as their aim is to replicate real-life situations. The Bank ensures the sanctity of model risk through initial and periodic validation, enhancing its reliability.
While the Bank has been externally validating certain models, such as credit rating and ICAAP, it has also established a model validation forum to oversee the Model Validation framework. This forum reviews validation exercises before reporting to the Enterprise Risk Committee (ERC) and the Risk Management Committee of the Board (RMCB). The Banks existing retail validation forum, which is responsible for validating retail models, has been incorporated into the Bank-level Model Validation forum.
5.6.12 Stress Testing
The Bank conducts stress tests for various risks, including Credit Risk, Credit Concentration Risk, Market Risk, Interest Rate Risk in the Banking Book, Operational Risk, Counterparty Credit Risk, Liquidity Risk, and Intra Day Liquidity Risk. These tests are designed to assess the potential vulnerability to severe but plausible adverse events. The results of these stress tests are reviewed by the Enterprise Risk Committee (ERC) Sub-Committee and are subsequently presented to the Risk Management Committee of the Board (RMCB) on a quarterly basis.
5.7 Technology Adaption to Aid Risk Management
The Bank utilises various digital platforms to enhance its risk management capabilities across functions such as Regulatory Capital (RWA), Market Risk, Operational Risk, and Fraud Risk. Some of these initiatives include:
• Data analytics for retail business: This helps in sourcing, credit decisions, and credit monitoring. All models are validated by an independent model validation team under the Chief Risk Officers vertical or by a Forum/Committee.
• Early Warning System: This system uses publicly available information from external databases, stock markets, disclosures, and news, among others, to highlight potential red flags. It aids in better credit decisions and credit monitoring.
• Machine Learning-Based Models: These models predict stress based on transactional data with the Bank, such as Current accounts, CC-OD transactions, LCs, BGs and cheque bounces, among others. They help with real-time fraud prevention by monitoring multiple transaction channels such as ATMs, mobile banking, and net banking, among others.
• Market Intelligence Unit (MIU): In line with the Malegam Committee recommendations on large- value loan exposures, the Bank has established a dedicated Market Intelligence Unit. This unit conducts both pre- and post-onboarding checks on borrowers of the Wholesale Banking group.
6. TECHNOLOGY
Technology has been and continues to be a major pillar in driving RBL Banks strategy. The Bank has shown significant growth over the past two years, specifically in strengthening its IT infrastructure and architecture.
Building on these efforts, in FY 2023-24, RBL Bank invested in cutting-edge technologies, strengthening cybersecurity measures, and expanding its digital banking offerings. It continues to stay invested in creating a seamless digital and customer experience across digital touchpoints and also ensures resilience through a robust disaster recovery mechanism. Moreover, the technology team aligns with business needs to provide effective and timely solutions to business problems.
Simplification
• Customer facing initiatives launched to improve customer service like Tax Collection, GST Payment
• Developed inhouse UPI Switch
• Developed inhouse eSign and eStamp
• 201 Operations processes automated
• 24*7 Monitoring of Applications
• eBank Guarantee (eBG) product launched on TradePro to enable digitally stamped and signed Bank Guarantee
Key Highlights of FY 2023-24:
• Successfully launched 10 new customer onboarding journeys for retail customers
• Introduced Digital Fixed Deposits (FDs), revamped Digital Savings Account (SA), and Womens First Account with Video KYC and Payment Gateway Integration
• Launched Digital GO Savings account, Sachet Insurance with Vector and OPD Insurance for DIY and ETB customers
• Implemented WhatsApp Retargeting, Savings Account (SA) on Credit Card (CC), and SA with Recurring Value Facility (RVF)
• Introduced OTP on WhatsApp for NRI customers for digital transactions
• Enabled upload of service requests for NRI customers through RBL Banks Internet Banking (RIB)
• Facilitated digital remittance of money overseas under LRS through RBL Bank for non-RBL Bank customers
7. OPERATIONS
For RBL Bank, operations have played a vital role in 2024 owing to dedicated efforts towards building more efficiencies through automation and incorporating and using Robotics/Artificial Intelligence/Machine Learning, Process Re-engineering, and a dedicated focus on cost. Additionally, emphasis has been on improving user productivity, process efficiency, customer TAT and First time right percentage across various products and services.
The Bank has ensured high consistency and synergy between Operations and Technology roadmaps, which will help lay down the path for the next leap. The Bank has also remained focussed on compliance and providing a secure environment for financial transactions. The Bank continued to re-engineer and improve operational flexibility through simplification of several internal processes and realignment of various functions.
Significant steps have been initiated to ensure a complete focus on Financial Planning and Analysis, in addition to reviewing costs, resorting to vast data analytics on the underlining transaction volumes and trends to have better control over expenses with the ultimate vision to rationalise the cost-to-income ratio. This has further led to the identification of opportunities for augmenting and a dedicated focus on productivity both at central and branch operations. With such a dedicated focus on automation and straight-through processing, the human ability to think is being put to higher-level challenges in improving Quality Control (QC), higher first-time rights (FTRs) and customer satisfaction. Some noteworthy initiatives include:
• Straight through Processing for Identified Credit Card Processes
• Integration of Finacle as the Loan Management System (LMS) for all Retail Asset Products
• Consolidated its Customer Relationship Management to a Single platform, CRMNxt
• Automation of various Reconciliation Modules across Operations Touching various Products
• Increased Penetration of Tab-based Account Opening for CASA
• Adoption of robotics across various Business Operations
Branch Operations
The Bank continued its focus on automating various control and branch reports to smoothen branch operations. Branch scorecards, which define and measure the efficiency of branch operations, were revamped and oriented to capturing customer end-to-end TATs. Digitisation and automation across various service requests through effective adoption and implementation of CRM and workflows have freed up branch operations time, which is now dedicated to enhancing customer relationships. With the increased usage of digital modes of payments, branches are now playing a catalysts role in mobile app adoptions.
Retail operations
The Bank saw a significant increase in different asset product offerings, especially in the retail segment. Strong and automation-focused operations team, ensured the support of the launch of products and variants such as Vehicle, Home and Education Loans. Automation of internal processes like welcome kit generation, statement generation, and bureau data submissions helped improve overall efficiency. On the liability side, efforts continued towards the adoption of TAB-based account opening and the enhancement of controls and processes.
Transaction Banking , Digital Payment & Acquiring Operations
Transaction Banking operations remained focused on the automation of various processes like UPI/IMPS/BBPS
reconciliations. The Bank, with its robust system process and IT infrastructure, was able to navigate and support 100% growth in UPI smoothly, 75% growth in IMPS volumes and 25% increase in NACH mandate registrations and consistently delivering in line with the NPCI roadmap on the rollout of payment products. Additionally, the Bank geared up for integrations and solution implementations towards the end of FY 2023-24 as Large Partners like Paytm and PhonePe, among others, were onboarded. This is expected to result in a significant increase in the number of clients onboarding on acquiring, payment and settlement businesses. Positive Pay system guided by the regulators has been successfully implemented.
Credit Card Operations
The Bank has embarked on significant progress in this space and is getting ready to support the launch of Rupay cards to its customers by building several process and system enhancements to support scale-up. In this regard, service requests across the credit card life cycles were automated in FY 2023-24, leading to efficiency and faster TATs. Centralisation of various servicing activities were taken up to integrate Credit Card and Debit Card operations for better synergy and consistency across processes within the Bank. NPA process control strengthening continued with the successful implementation of system reports and automation in FY 2023-24.
Treasury Operations and Global Trade Services
Across treasury products, controls were improved by routing INR Payment generated directly from the system for domestic and forex operations with systemic control over capturing of LEI. Automation also helped tighten controls like NPI, which accounts for the reversal of income. For trade products, there was a continuous focus on enhancing Straight-through Processing where possible. In other cases, the automation of maker functionality helps in the speed and accuracy of the processing and shifts the User focus towards the Checker functionality, resulting in more controlled and secure processing of transactions.
The Bank has partnered with National E-Governance Services Ltd (NeSL) to issue an E-Bank Guarantee. The NeSL E-Bank Guarantee is a digital solution designed to replace conventional paper-based guarantees. This offering allows the Bank guarantees to be stored in electronic form at a central repository that is visible to both the beneficiary and applicant. The beneficiary also has the option to request amendments and invocation, among others, through NeSL, thus providing the Bank authenticated requests.
Wealth Management and Depository Participant Operations
503 IPOs successfully handled with ~4.23 lacs ASBA applications processed in FY 2023-24. Vast automation initiatives were taken up to ensure sufficient controls through reconciliation and facilitate scalability in processing various activities related to AMFI guidelines, SP (Insurance Selling Person) Certification and National Pension scheme, among others.
Other Supporting Functions - Corporate Services, Product Approval Committee Conveyor, Vendor Governance
The Bank adopted an enhanced product approval framework, which ensures products and processes are now defined in parallel for a faster time to market for new products and, efficient maintenance within regulatory guidelines and enhancing governance of existing products and services. To enhance security, in addition to all branches, offsite ATMs were brought under the purview of e-surveillance. Record Management Policy and Framework were revised for incorporating changes in new products introduced in FY 2023-24. In addition, the Bank instituted a continuous process of reviewing and strengthening the outsourcing framework with a complete focus on the financial outsourcing aspects as defined by the regulators.
8. HUMAN RESOURCES (HR)
The Human Resources function at RBL Bank is a force dedicated to nurturing a culture of growth, engagement, development and excellence. Driven by a commitment to empowering its workforce, the Bank has implemented several initiatives to streamline processes, foster talent development, and cultivate a sense of belonging. From launching a mobile-based HRMS to creating career progression journeys and nurturing new talent through comprehensive onboarding programmes, the Banks efforts are focused on providing a seamless employee experience. The Bank prioritises self-sourcing and campus hiring, ensuring a steady influx of fresh perspectives.
This holistic approach, encompassing professional growth, personal well-being, and a shared sense of purpose,
ultimately shapes a workplace where individuals thrive and contribute to the organisations success.
Learning & Development (L&D)
Learning is integral to the culture at the Bank, and it has hence established a comprehensive Learning & Development programme for its employees. The Bank embarked on a Learning Mission to ensure that employees complete a minimum of one learning programme each year.
The programme features role-specific learning journeys, which were enhanced by adding more roles and business units for Retail & Wholesale Banking during FY 2023-24. There was a focus on building a Risk & Compliance Culture, with emphasis on areas such as Know Your Customer (KYC), Anti-Money Laundering (AML), Counter-Terrorist Financing, Cybersecurity, Digital Risk, Emerging Technologies, Ethical Leadership, and Early Warning Signals.
The Bank also introduced new developmental programmes across grades, which aimed at enhancing leadership and management competencies. It collaborated with best-inclass learning partners such as NIIT, CRISIL, CAB, CAFRAL, NIBM, Euro Finance, IDRBT, FEDAI, FIMMDA and Simplilearn, among others.
Talent and Succession Planning
The Bank operates a formal talent management and succession planning process through its Talent Management Council (TMC) to identify, build, and nurture leaders. The talent review involves a comprehensive assessment and analysis process for senior leaders in the organisation, followed by integrated leadership development programmes.
Employee Reward Management
The Bank has implemented best practices in hiring, promotions, and general remuneration budget planning. It continues to align its compensation policy with the latest guidelines published by the Reserve Bank of India to attract, retain, and motivate employees.
CEO Awards
The Bank has been consistently encouraging a performance-based reward culture. Its flagship annual rewards and recognition (R&R) event celebrates excellence within the organisation. A Rewards & Recognition process leading up to a grand Awards Ceremony was organised in
August 2023, which recognised employees in the following categories.
• CEO Supreme League - PREET Exemplars and Achievers Award
• PREET Exemplars (Professionalism, Respect, Excellence, Entrepreneurial, and Teamwork) Awards for embodying the Banks values
• Achievers Award for accomplishments with organisation-wide impact
The Bank has also institutionalised Loyalty Awards for employees who have crossed the 5 & 10-year milestones in service, fostering a culture of recognition.
Diversity & Inclusion
The Bank aims to develop a truly diverse workforce and realises that embracing diversity is vital for its long-term success. Focusing on enhancing gender diversity within its ranks, the Bank undertook several key steps:
• Conducted six diversity drives to advance the gender diversity agenda
• Strengthened the hiring programme for returnee women through its second career programme - RETAKE
• Conducted gender sensitisation workshops for campus hires and employees of the Bank
• Tracked the career progression of women employees within the Bank, especially during appraisal and other review cycles
• Adhered to Performance Management System (PMS) guidelines for all maternity cases, protecting the ratings of women who were on maternity leave
• Introduced a Womens Leadership Development Programme to help women employees get adequate developmental opportunities to build their careers in the Bank
9. CORPORATE SOCIAL RESPONSIBILITY (CSR)
RBL Banks business philosophy is underpinned by its commitment to act as a responsible corporate citizen, fostering sustainable communities through meaningful programmes for the welfare and development of people from economically and socially disadvantaged backgrounds. Under its CSR Policy, the Banks key focus areas are health, education, and livelihood opportunities. An estimated 0.47 lakh people benefited directly from the various programmes under the CSR mandate during FY 2023-24. Since 2014, RBL Bank has impacted more than 3 lakh beneficiaries directly and indirectly, benefitting more than a million others.
The Banks CSR agenda is driven by the Board-led CSR Committee, under which the CSR Executive Committee and the CSR Team facilitate the implementation of CSR programmes. Monitoring & Evaluation (M&E) is carried out by the internal CSR Compliance team. The Bank does direct implementation and partners with several nongovernmental organisations (NGOs) to fulfill its social responsibilities.
RBL Banks Flagship Community Programmes
1. UMEED: The Bank distributed over 2,000 bicycles and school kits across India to school-going girls, enabling sustained access to education. This was a direct implementation project by the Bank with the support of the Government departments of the respective states.
2. Stimulating Tribal and Rural Transformation (START): The Project START initiative by PRADAN (NGO) and RBL Bank aims to create women-centric
socio-technical models for agricultural development and related activities in select regions. It engages communities to enhance food security for rural populations by encouraging participation in MGNREGA and supporting the establishment of Farmer Producer Organisations (FPOs) to rejuvenate the agricultural sector. The Project also promotes self-employment opportunities through micro and agricultural enterprises in Odisha, Bihar, Jharkhand, and West Bengal, contributing to the economic empowerment of rural communities.
3. Light House Project: The collaboration between the GTT Foundation and the Lighthouse Communities Foundation, supported by RBL Bank, focuses on empowering youth through education, skill enhancement, job opportunities, and sustainable livelihoods. The Project aims to benefit approximately 5,000 young individuals from diverse communities by building their capacities and providing them with the tools to secure their futures.
4. ‘Hear A Million: Hear a Million is a pioneering programme led by Enable India and supported by RBL Bank. It focuses on integrating individuals with hearing impairments into mainstream society through education, policy advocacy, skill development, training, and job placement initiatives. The Programmes ambitious goal is to cultivate 10,000 deaf leaders across the country, empowering them to contribute meaningfully to society.
5. Asha Kiran: Nudge Life Skills Foundation, through its project Asha Kiran is targetting poverty alleviation for 2.5 million people residing in rural areas within the state of Uttar Pradesh. It will facilitate welfare access and remunerative, sustainable, and resilient livelihoods. Launched in association with RBL Bank, the Programme aims to help 50,000 households (landless, marginal farmers, SC/ST and vulnerable households) with sustainable rural livelihoods: Goatery, backyard poultry, and agriculture as well as providing welfare scheme access like MGNREGA to rural families, migrant and construction workers.
Other CSR Programmes in the Thrust Areas of H.E.LO. (Health, Education and Livelihood Opportunities)
Healthcare
• Khwaish: Khwaish is a noble initiative aimed at funding solid tumour cancer surgeries for young girls under the age of 18. Launched in FY 2023-24 on Founders Day, the Programme has impacted 211 girls. Khwaish has partnered with the top 3 cancer treatment hospitals pan India to provide treatment specifically for solid tumours in girls. This initiative aims to maximise social value returns by saving human lives and reducing the burden on low-income caregivers.
• Dhanvantri: Dhanvantri is a transformative initiative that provides doorstep health check-ups through mobile medical vans to individuals who lack access to quality healthcare. The Project addresses the healthcare needs of domestic help, housekeeping staff, security guards, and other support staff who often face barriers to healthcare. The Project focused on large residential populations in housing societies in Mumbai, Delhi, Bengaluru and Kolkata, benefiting 6,000+ underprivileged individuals who otherwise could not afford such services. It has been well- received by 60,000+ residents in these areas.
• Sanjeevani: Sanjeevani is a visionary initiative aimed at supporting service-oriented hospitals by providing fully equipped ambulances/vehicles to expand healthcare access and reach. The Programme has partnered with five hospitals across India. These hospitals are responsible for the operation and maintenance costs of the ambulances. Each hospital is mapped to a local branch for continued supervision and monitoring to ensure the efficient utilisation of the ambulances. As part of the initiative, these ambulances will be made available to the Bank on Founders Day every year. This collaboration aims to enhance healthcare accessibility and provide critical support to communities in need.
Education
• Shiksha: Shiksha is a transformative initiative aimed at preparing deserving, underprivileged students for livelihoods through scholarships. The Programme has partnered with organisations such as the Lila Poonawalla Foundation and the Nargis Dutt Foundation, among others, after evaluating seven potential partners based on their expertise, experience, credibility, and willingness to work according to the Programmes design. The Programme ensures a maximum support cap of ^60,000 per annum per student, covering their entire course duration. Scholarships are awarded based on merit, and rigorous monitoring of students progress is conducted by the Bank and its partners to ensure continued support for deserving students.
• In-Service Teacher Training: RBL Banks partnership with The Muktangan Trusts In-Service Teacher Training Programme is a valuable initiative. By providing on- the-job training to educated youth, the Programme not only helps them become teachers in English Medium Schools but also contributes to improving the quality of education in these schools. This effort is crucial in enhancing the overall educational ecosystem and empowering youth with valuable skills.
• Suryoday RBL School: The Bank supports operating expenses of a school for special children in a semiurban area. This school is located in a vicinity where there are no other schools for differently abled. The programme covers the cost of teachers salary and the operational therapy.
• Support for rehabilitation program for 4 differently abled individuals: The Bank has witnessed significant improvement in the children who were imparted life , vocational and educational skills.
Livelihood Opportunities
• Upkaran: Project Upkaran is a comprehensive initiative aimed at supporting livelihoods through skill development programmes and interventions. The Bank collaborated with Govt of Andhras non-profit society - Connect to Andhra. 50 women beneficiaries received automatic sewing machines through this programme.
10. CUSTOMER SERVICE
Customer Services Unit - Vision 2026
RBL Banks customer-first vision 2024-26 reflects the Banks commitment towards placing its customers at the forefront of all its activities. Its primary focus is on understanding the unique needs and expectations of its customers and delivering personalised solutions to meet those needs. It seeks to foster long-term relationships with its customers by providing them with innovative products, exceptional service, and seamless banking experience.
The Banks customer-first philosophy resides on three pillars of being Receptive, Responsive and Responsible
towards its customers. These pillars represent the various focus areas and actionable which the Bank will undertake towards delivering a better service experience of its customers.
The three pillars of RBL Banks customer first vision 202426 can be explained as follows:
a) Receptive: The Bank believes that being receptive to customers needs, concerns and feedback is of paramount importance for providing exceptional customer experience. This will be achieved by: •
• Ensuring easy accessibility: Simplification of reaching the Bank through phone, email, chat, and social media. Clearly defined levels for addressing customer grievances.
• Listening to the voice of customers: Regularly listen and analyse feedback from customers to identify areas of improvement.
• Investing in customer analytics: For better customer experience and enabling a customer friendly grievance redressal mechanism led by empathy.
b) Responsive: The Bank recognises the need to respond the customer in an effective and timely manner. This will be ensured by:
• Continuously improving customer experience:
By building digital capabilities, adding product features, answering queries quickly and resolving complaints within TATs.
• Sustained process improvements: Towards making RBL Bank easy and simple to deal with, thereby improving experience around onboarding, transaction processing & client servicing
• Leveraging technology: Use technology such as CRM, APIs, STPs, Chatbots and Contextual AI, among others, to provide quick and efficient customer support.
c) Responsible: The Bank believes in acting responsibly in all interactions, upholding the high standards of
ethical and professional conduct and contributing to the ethos of responsible corporate behaviour. This is achieved by:
• Farz Banta Hai: A commitment to deal fairly with customers by fostering trust and upholding ethical standards.
• First time right: Strive to resolve customer issues at the first instance.
• Maintaining transparency: Provide customers with clear communication regarding policies, products, and services.
• Fostering a culture of responsibility: Act
in the best interests of customers and take responsibility for its actions.
Commitment to Customer-Centric Service Excellence
The Banks Customer Service unit is dedicated to fostering a service culture that prioritises customer centricity in every engagement. Key elements of RBL Banks Customer Service and experience philosophy are detailed below:
1. Mission: RBL Bank is committed to delivering a seamless customer experience by addressing customer needs promptly and effectively, thereby ensuring trust, loyalty, and accessibility.
2. Design: All products and processes at RBL Bank are designed with a customer-first philosophy, ensuring that customer needs and satisfaction are always at the forefront of product offerings and associated operations.
3. Execution: RBL Bank strives to provide high-quality customer service by ensuring accessibility through multiple channels, including in-person service at branches, support via contact centres, email, chatbot,
mobile application, and WhatsApp banking. The Banks competent and trained staff are equipped with the necessary skills and resources to deliver exceptional customer service. This is further reinforced by continuous feedback from customers to enhance satisfaction.
The customer service unit, aligned with the Banks overall strategic and financial objectives, strives towards the following objectives:
1. Effective Grievance Redressal: RBL Bank ensures fair treatment of its customers with an effective grievance redressal mechanism, featuring clearly defined turnaround times (TAT) for resolutions. The Bank has made significant improvements in addressing grievances across all channels, including the Business Correspondent (BC) channel. As part of effective grievance Redressal, the Bank aims for the following:
a. Reduction in Complaints: Conducting Root Cause Analysis (RCA) to identify gaps in people, processes, and technology, and implementing remedial actions to reduce complaints.
b. Resolution Within TAT: Focusing on prompt resolution within defined TAT, with continuous improvements in this area.
c. Referral to Internal Ombudsman (IO): Ensuring that all rejected or partially rejected complaints are automatically referred to the IO through the CRM system.
d. Quality Control: Enhancing quality control functions to ensure high standards across parameters such as resolution quality, response quality, and adherence to TAT.
e. System Enhancements: Continuously improving the CRM system to enable agents to correctly log customer interactions and provide solutions, including ticket and TAT rationalisation.
2. Enhancing Customer Experience: RBL Bank aims to provide an efficient and seamless customer experience through:
a. Voice of Customer (VOC): Gathering customer feedback on complaints and request resolutions through Digital VOC and QR codes at branches
to drive improvements in systems, processes, people, and technology.
b. Leveraging Technology: Utilising technology to increase chatbot coverage and usage, enhance straight-through processing (STP), enable selfhelp options for customers, provide tools for customer-facing teams, ensure first-time-right accuracy, deliver an omnichannel experience, and leverage artificial intelligence to simplify and optimise customer service.
c. Training: Regularly training customer-facing staff on products, processes, operations, service orientation, and compliance through various programmes, including need-based training, knowledge series, online assessments, and process maps. These programs are continuously enhanced to address current customer issues identified through RCA and feedback mechanisms.
3. Improving Compliance and Governance: The
Customer Service department ensures compliance with all regulatory and internal directives and maintains governance over compliance matters. This includes:
a. Policy Reviews: Reviewing all policies as per defined timelines and obtaining Board approval.
b. Standard Operating Procedures (SOPs): Clearly defining and adhering to SOPs.
c. Regulatory Reporting: Ensuring timely regulatory reporting and submissions.
d. Governance Meetings: Managing Customer Service Committee meetings and ensuring compliance sustainability.
4. Customer Awareness and Protection: RBL Bank emphasises the importance of customer awareness around important issues. To address emerging trends, the Bank has launched Fraud Awareness Customer Campaigns across various channels, including branches, social media platforms, the Banks website, SMS, and email. Additionally, Financial Literacy Camps are organised at rural branches to promote financial literacy. The #farzbantahai
campaign and #ApnoKiBaat meetings address critical topics such as nomination, fraud prevention, and safe banking practices, driving transparency and accountability.
RBL Bank remains dedicated to continuously enhancing customer service and ensuring a customer-centric approach in all its engagements.
11. MARKETING & COMMUNICATIONS Apno Ka Bank, RBL Bank!
RBL Bank believes in a grounds-up approach to marketing and communications that ensures consistent and impactful brand messaging across all channels. Its 360-degree strategy encompasses a comprehensive nationwide brand development effort, consistent PR and media engagement, internal and external communications, product marketing, digital marketing, branch marketing, and client engagement initiatives. These efforts align with its core value proposition of demonstrating Relationships with Responsibility with customers and aligns with the Banks brand slogan Apno Ka Bank.
Brand Development: The Banks brand development initiatives focus on creating a strong and recognizable brand identity that resonates with its core values. Through a combination of strategic as well as tactical branding efforts, it reinforces the commitment to fostering responsible relationships with customers.
PR & Media Engagement: The Bank engages with the media proactively, ensuring that its achievements, innovations,
and community initiatives are highlighted. The PR efforts help build a positive image and strengthen its reputation in the industry.
Internal & External Communications: The Bank prioritizes clear and effective communication with employees and customers. Internal communications keep the team informed and motivated, while external communications ensures that customers are aware of the latest products, services, and updates from RBL Bank.
Product Marketing: The product marketing strategies are designed to showcase the unique benefits of the Banks offerings. By understanding customer needs and preferences, the Bank tailors its marketing campaigns to highlight how its products and services add value to their lives.
Digital Marketing: In the digital age, the Banks digital marketing efforts play a crucial role in reaching and engaging with the audience. The Bank leverages social media, email marketing, search engine optimization, and online advertising to connect with customers and provide them with relevant information and updates.
Branch Marketing: The branch marketing initiatives focus on comprehensive community engagement within RBL Banks branch catchment areas. It conducts a variety of outreach activities to build strong local connections, ensuring that its not just a bank but an integral part of the community. It also focusses on creating a welcoming and informative environment for the customers. By enhancing
the in-branch experience, the Bank ensures that customers feel valued and supported in their banking journey.
Client Engagement: Building strong relationships with clients is essential to the Banks success. Through a yearlong comprehensive engagement calendar, it ensures to remain well connected with clients while they receive high quality service and tailored solutions that meet their unique needs.
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