(Disclosure:I am market making in the shares of RBL Bank)
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Tag: ratnakarbank
(Disclosure:I am market making in Ratnakar Bank)
How has your transformation journey unfolded so far?
We have been three-and-a-half years now into our transformation journey. In some aspects our transition has been smooth, while on some others we are still working. We aim to grow in the 30-45 per cent range annually. Also, the focus will be more on bottomline as we come closer to the IPO stage (later this fiscal).
How has your bank performed in FY 2014?
In July 2010, when I joined the bank, we inherited a balance sheet (deposits and loans) of ₹2,200-2,300 crore. We will close FY 2014 at about ₹18,000 crore against a balance sheet size of about ₹13,000 crore as on March-end 2013. Our goal is to reach a business size of ₹30,000 crore in three years, and take CASA (current account, savings account) to 22 per cent (from 20 per cent now).
Which areas of lending are you focusing on?
When we look at the large corporates, we don’t look at direct lending. Since my base rate is higher, I am uncompetitive and they need lower interest rates. In the ecosystem of large companies, we lend to their partners, such as vendors or distributors. Their linkage to the large corporates mitigates our losses. We are the bank for the middle class anyways, and that’s how we have managed to keep the NPA levels low.
In the past one year, where has your growth come from?
The corporate book has grown. We have exceeded the priority sector lending (PSL) requirement — all of it was direct lending and no loans were bought out. Our agriculture and SME portfolios, too, have grown.
What are you doing to differentiate your bank from competition?
We are taking a cluster approach. We go to one area, become part of that neighbourhood and add four to five branches there so that there is enough presence and we give everything the customers want. We are seeing retail deposits grow in these areas.
What is your branch expansion plan?
We ended FY 2014 with about 175 branches. We added about 50 last year but now we will slow down as we want to make the existing branches profitable first. This is our DNA, we do not proceed before making money. It should not be a dead investment. It takes 18-22 months for the branch of a big bank like HDFC Bank to break even. We try within the same range, and because we are a small bank, we want to make it profitable first. So, we will add about 20 branches this year; but ATMs, we will add 100 more this year.-from BusinessLine
(Disclosure:I am market making in RBL Bank)
RBL Bank,earlier known as Ratnakar Bank, on Thursday said it had signed an agreement to become the principal sponsorand banking partner for Indian Premier League (IPL) teamDelhi Daredevils. As part of this association, the RBL Bank brand will now be seen on the Delhi Daredevils’ jerseys.
“I am personally excited with this association… This opportunity gives us a fantastic platform to present our new bank brand to the audience. The Delhi team was a natural fit because of our growing presence in the NCR (national capital region),” Vishwavir Ahuja, managing director and chief executive officer, RBL Bank, said in a statement.
The bank and the cricket team plan to do various activities through and after the tournament to leverage this partnership. Some of the initiatives involving cricket fans have been planned by both the partners and will be announced soon.
The seventh edition of IPL started on Wednesday in Abu Dhabi, United Arab Emirates, and will return to India on May 2.
“The new management at the bank is a high energy team, and we feel the great synergies with the Daredevils are bound to take this partnership far. The bank is one of India’s fastest growing, which perfectly complements the fast pace of T20cricket,” Hemant Dua, chief executive officer of Delhi Daredevils, said.
GMR Sports, Delhi Daredevils’ franchise owners, is backed by the GMR Group.-from BS
(Disclosure:I am market making in Ratnakar Bank)
RBL Bank, formerly known as Ratnakar Bank, today said it has raised Rs 328 crore from a group of global investors.
Besides the capital injection by institutional investors, the private lender may hit the market with public offering for shares in 9-12 months, said Rajeev Ahuja, Head of Strategy at RBL Bank.
The capital infusion was led by CDC Group and Asia Capital and Advisors. The bank’s existing investors, including International Finance Corporation (IFC), private sector funding arm of World bank, and Gaja Capital, also participated in this round. This is the third time the private lender has raised money in the last three years.
At present, the Bank has a total business size of over Rs. 21,000 crore and offers its services to over half a million customers. Ahuja said bank has grown business – deposits and advances – by over 40% in 2013-14 and expects to maintain same pace in 2014-15.-from Business Standard
(Disclosure:I am market making in Ratnakar Bank)
Kolhapur-headquartered Ratnakar Bank has drawn up plans to raise about ₹1,000 crore through an initial public offer in the current financial year.
According to Vishwavir Ahuja, MD and CEO, his bank has reached a tipping point, in terms of balance sheet size, profitability and number of branches, with all three parameters seeing robust growth in the last four years.
₹18,000-cr balance sheet
Ahuja said Ratnakar Bank is likely to end FY14 with a balance sheet size of ₹18,000 crore against ₹2,300 crore in July 2010, when the new management took charge.
Further, its profit is expected to be close to the three-digits mark in FY14 against ₹19 crore in 2010-11.
In FY13, the bank reported a net profit of ₹92 crore (₹66 crore in the year-ago period) on a balance sheet size of ₹13,000 crore (₹7,200 crore).
From about 50 branches, predominantly concentrated in Maharashtra and Karnataka, in 2010, the 71-year-old bank, which has been re-branded as RBL Bank, now has 175 branches spread across 12 States.
Pointing out that it has achieved all transformation goals, in terms of balance sheet size, profitability, geographical expansion, technology infrastructure, governance and capital, the new management set out to achieve four years ago, Ahuja said the bank has reached a tipping point whereby the next round of capital raising via an IPO will set the stage for the next three years of growth.
Ahuja said, “We might do it (IPO) in this calendar year or latest in the fourth quarter of this financial year.”
Receives ₹167-cr investment
On Wednesday, the bank received investment amounting to $28 million (₹167 crore) from UK-based CDC Group. In the process, CDC picked up 4.8 per cent stake in the bank.
“The capital will be enough for this year,” said Ahuja.
In the last three years, the bank received investments aggregating ₹1,470 crore in three tranches. Shareholders who invested in the bank include HDFC, Norwest Venture Partners, Cartica Capital, International Finance Corporation, Faering Capital and Gaja Capital Partners.
Ahuja said the bank has managed to raise capital as and when the capital adequacy ratio (CAR) has fallen below 14 per cent. Post the CDC investment, the bank’s CAR has returned to 16-17 per cent.-from BusinessLine