(Disclosure:I am market making in the shares of RBL Bank)
Attended the RBL Bank AGM yesterday in Kolhapur.
Here is what I heard and saw:
- The hall was packed with shareholders.The Bank certainly enjoys a strong emotional connect with its local shareholders (see pic)
- The MD & CEO Vishwavir Ahuja addressed the shareholders.He spoke in Hindi so that the audience was comfortable
- In his speech, he mentioned the following:
- That the Bank has grown considerably in the last four years
- That on some parameters like NPAs etc, it is the best bank in the country
- That the RBS acquisition was a success and the positive impact will be felt in this years results
- That the fund raising in March was successful and RBL Bank is the only bank in the country to be backed by marquee investors IFC and CDC
- That the Board has initiated the IPO process and there would be an EGM in the near future to take shareholder approval for the same
- The New Chairman Narayan Ramachandran then addressed the shareholders.He made a very strong statement “The Board of Directors of this Bank will ensure that this Bank will not only grow but we will hold our head high about how we grow“. I found this very reassuring
- The floor then was left open for Questions
- One shareholder asked about the falling NIM(2.84 for FY2014). The MD explained that the desirable NIM for a growing bank is 3. The NIM of the Bank had fallen due to fresh capital infusion in March 2014 and would increase this year
- One shareholder wanted to know the branch expansion strategy of the Bank.The MD explained that there are 20/25 important financial centers in the country that every National Bank needs to have a presence.He also mentioned that RBL Bank will cross 200 branches this year.He mentioned that on average it takes a branch to 2-2.5 years to break even and they want to grow slowly but steadily on this front
- Some shareholders had an issue with the Bank being renamed from The Ratnakar Bank to The RBL Bank.The MD explained that this was necessary from a branding perspective and for the future growth of the bank.By renaming it RBL Bank instead of a completely new name, the link with the past and the legacy is maintained
- Then the Agenda was taken up.The resolutions were passed unanimously by the shareholders
- The resolutions were:
- Adoption of Accounts
- Approval of Dividend of Rs.0.90
- Reappointing of auditors Batliboi and appointing of Branch Auditors
- Appointment of Vimal Bhandari,Sudhir Rao,Jairaj Purandhare,Kiran Patil,Narayan Ramachandran,Girish Godbole,D Sivanandhan and Rama Bijapurkar as Independent Directors
- Approval in remuneration of the MD
- Approval in increase in borrowing powers of the Bank
- Changing the name of the Bank from ‘The Ratnakar Bank’ to ‘RBL Bank Ltd’
This concluded the proceedings of the AGM.