Q2 2025 RBL Bank Ltd Earnings Call Transcript
Key Points
- RBL Bank Ltd (BOM:540065) reported a robust growth in secured retail assets, increasing from INR10,000 crores in September 2022 to INR23,000 crores in September 2024.
- The bank's granular deposits grew by 22% year-on-year, with total deposits increasing by 20% over the last year.
- RBL Bank Ltd (BOM:540065) has successfully reimagined its wholesale banking approach, focusing on well-rated clients and mid-sized corporates, leading to a self-funded and derisked business model.
- The bank's branch banking business continues to drive granular deposit growth without compromising on deposit rates, despite a challenging deposit environment.
- RBL Bank Ltd (BOM:540065) has made significant progress in diversifying its revenue streams, with newer secured products like affordable home loans and small business loans reaching 15% of disbursements.
- The bank faced near-term challenges in credit card slippages due to the transition of collection services, impacting credit quality.
- Microfinance business experienced asset quality issues due to borrower over-leverage and multiple lenders, affecting near-term performance.
- RBL Bank Ltd (BOM:540065) reported higher-than-normal provisioning primarily due to slippages in cards and microfinance, leading to increased credit costs.
- The bank's net profit for the quarter was down 24% year-on-year, impacted by increased provisioning and credit costs.
- RBL Bank Ltd (BOM:540065) anticipates continued pressure on microfinance slippages in the near term, with expectations of improvement only by Q4.
Ladies and gentlemen, good day, and welcome to RBL Bank Limited Q2 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. R. Subramaniakumar, Managing Director and CEO of RBL Bank. Thank you and over to you, Mr. Kumar.
Thank you very much, ma'am. Good evening, ladies and gentlemen, and thank you for joining us for a discussion on our bank's financial results for the second quarter and half year of the financial year 2025. We have uploaded the results along with the presentation on our website and I hope you have had the chance to go through it in detail ahead of this call.
I am, as always, joined on this call by Rajeev Ahuja and other members of our management team to address any questions that you have. I will spend the next few minutes talking to our progress on the broad-based parameters, after which Mr. Jaideep will take you through the financial numbers in detail
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