RBL Bank Full Form, Functions, and Latest Financial Details

What is the full form of RBL Bank? – RBL Bank Full Form

The full form of RBL Bank is Ratnakar Bank Limited. It is one of India’s fastest-growing private sector bank established in August 1943. RBL Bank is also referred to as NH4 bank. Since a majority of its business comes from cities in and around the National Highway 4. They have received multiple awards for their exceptional contributions to the banking sector. RBL Bank’s current Managing Director (MD) and Chief Executive Officer (CEO) is Mr. Vishwavir Ahuja. He has close to 36 years of industry experience. Prior to joining RBL Bank, he was Bank of America’s MD & CEO from 2001 to 2009. The bank has a customer base of over 9.63 million customers. It has 429 branches, 1,365 business correspondent branches, and 412 ATMs. RBL Bank Ltd. trades on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE). RBL Bank operates in six verticals :

• Corporate & Institutional Banking
• Commercial Banking
• Branch & Company Banking
• Retail Assets
• Treasury Operations
• Financial Markets Operations

Brief History of RBL Bank 1943 : Ratnakar Bank was founded in August 1943 as a regional bank in Maharashtra. The bank had two branches in Kolhapur and Sangli.It primarily served Small and Medium Enterprises (SMEs) and business merchants. 1959 : Ratnakar Bank became a scheduled commercial bank under the Reserve Bank of India Act, 1934. 1970 : The Reserve Bank of India granted Ratnakar Bank a banking license in 1970. August 2013 : Ratnakar Bank announced the acquisition of Royal Bank of Scotland‘s credit card business. August 2014 : Its name is changed to RBL Bank Limited in August 2014. 2016 : RBL Bank acquires a 9.99% stake in Utkarsh Micro Finance Ltd. November 2017 : RBL Bank increased its stake from 30% to 60.48% in Swadhaar Finserve Pvt. Ltd. (SFPL). It offers services to the financial inclusion segment. It covers micro banking and MSME in rural and semi-urban areas. June 2018 : RBL Bank acquired 100% stake in Swadhaar Finserve Pvt. Ltd. (SFPL). RBL Bank’s Key Personnel :

• Managing director & CEO: Mr. Vishwavir Ahuja
• Executive director: Mr. Rajeev Ahuja
• Independent Director: Ms. Ranjana Agarwal
• Chief Financial Officer: Mr. Amrut Palan
• Company Secretary: Ms. Niti Arya
• Chief Risk Officer: Mr. Depak Kumar[SP1]

RBL Bank’s Subsidiaries : RBL FinServe Ltd. is a subsidiary of RBL Bank. It was previously known as Swadhaar FinServe Pvt. Ltd. RBL FinServe Ltd. is a comprehensive financial services distributor. They provide loans and savings products services to low-income households and micro-entrepreneurs. Their mission is to make financial services accessible to economically vulnerable households and businesses. They aim to provide financial assistance to enable them to attain financial security. Recommended Read: How to analyse a banking stock? A complete guide. Products and Services Offered by RBL Bank :

Accounts

You can open multiple types of accounts with RBL bank:

• Savings Accounts
• Current Accounts
• Doctors Accounts
• Special Institutions Accounts

The bank also offers locker facilities. Signature banking and aspire banking are their product extension. These are offered in domains like wealth management for exclusive customers. Fixed Deposits RBL Bank offers attractive interest rates on various deposit and savings schemes. Here are few types of Fixed Deposits offered by RBL Bank-

• Regular Fixed Deposits

This fixed deposit scheme is for depositors who depend on a regular fixed income. It comes the ones with minimal to no risk and decent returns.

• Flexi Sure Fixed Deposits

A fixed deposit that is linked with your savings or current account. One can earn better returns and also enjoy more liquidity.

• Recurring Fixed Deposits

This is for the fixed income groups to invest small amounts every month rather than investing in lumpsum.

• Tax Saving Fixed Deposit

A flexible scheme with dual benefits of tax exemption under section 80C and attractive returns. Find out which bank has the best tax saving FDs in India.

• Senior Citizen Fixed Deposit

A fixed deposit to facilitate senior citizens with maximum returns over term deposits. The depositors can also avail additional interest of 0.5% p.a. for all tenures. Recommended read: Mutual Funds vs FD (Fixed Deposits) – Which is the Best Option in 2021?

Credit Cards

There are a plethora of credit cards and plans that you can choose from with varying perks. For example, Insignia Preferred Banking World Card, RBL Bank Cookies Credit Card, etc.

Loans 

RBL Bank offers the following types of loans:

•  Personal Loans
• Overdraft Against Property
• Business Loans
• Affordable Housing Loans
• Education Loans
• Car Loans

Visit this page to browse through all the loan options available with RBL Bank. Insurance RBL also offers life insurance, general insurance, and health insurance covers. Visit this page to browse through all the insurance options available with RBL Bank.

Investment

You can create wealth with the RBL Bank through the various Investment Services they have, their e-ASBA portal, and the National Pension System. 

Listing and Shareholding at RBL Bank :

%	Mar 2018	Mar 2019	Mar 2020	Mar 2021
FIIs	18.93	22.15	28.35	34.25
DIIs	13.54	21.27	27.22	22.74
Government	0.03	0.15	0.43	0.36
Public	67.5	56.42	44.01	42.64

Promoters do not hold any shares in RBL. 57% is held by financial institutions. A significant amount of FII holdings indicates increased confidence in the firm. This shows the confidence that RBL bank enjoys and therefore the stability in its share prices. The public share has been decreasing over the years but it’s still a healthy 42%.

Financial Overview :

Market Cap (Cr): 11,581	Face Value (₹): 10	EPS (₹): 10.75
Book Value (₹): 177	ROCE (%): 6.91	Debt to Equity: 7.08
Stock P/E: 20.4	ROE (%): 5.53	Dividend Yield (%): 0.77
Revenue (Cr): 8,678	Earnings (Cr): 0	Cash (Cr): 8,859
Total Debt (Cr): 74,819	Promoter’s Holdings (%): 0

RBL Bank’s Balance Sheet :(Figures in Rs. Crores)

 

	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Share Capital	375	420	427	509
Reserves	3,961	6,261	7,108	10,056
Borrowings	42,568	53,145	70,190	74,819
Other Liabilities	1,771	2,052	2,673	3,600
Total Liabilities	48,676	61,877	80,398	88,983
Fixed Assets	224	327	416	471
Capital Work in Progress	35	31	40	62
Investments	13,482	15,397	16,745	18,055
Other Assets	34,934	46,122	63,196	70,396
Total Assets	48,676	61,877	80,398	88,983
Inventories	0	0	0	0
Trade Receivables	0	0	0	0
Cash & Bank	4,194	4,310	6,649	8,859
Loans and Advances	1,306	1,550	2,245	3,532
Trade Payables	0	0	0	0

Recommended Read: How to Analyse a Balance Sheet of a Company

RBL Bank’s Annual Profit & Loss: (Figures in Rs. Crores)

	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	3,713	4,561	6,302	8,779
Expenses	1,234	1,827	2,559	4,919
Financing Profit	-12	-6	-17	-1025
Financing Margin	0	0	0	-12
Other Income	755	1,069	1,441	1,918
Interest	2,492	2,741	3,761	4,885
Depreciation	62	89	126	146
Profit before tax	681	974	1,298	747
Tax	35	34	34	33
Net Profit	447	632	858	500

Recommended Read: Learn to Analyse Income Statement of a Company 

Mutual fund holdings and trends of RBL Bank Ltd

 

Schemes	Quantity	As on	Prev. Qty
HDFC MID-CAP OPPORTUNITIES FUND – GROWTH OPTION	28,101	31-05-2021	24,368
KOTAK FLEXICAP FUND – GROWTH	19,278	31-05-2021	16,718
NIPPON INDIA MULTI CAP FUND – GROWTH PLAN-INSURED	12,852	31-05-2021	12,446
FRANKLIN INDIA PRIMA FUND-GROWTH	11,212	31-05-2021	9,723
INVESCO INDIA CONTRA FUND – GROWTH	9,133	31-05-2021	7,920
DSP EQUITY OPPORTUNITIES FUND – REGULAR PLAN – GROWTH	7,214	31-05-2021	6,256
KOTAK EMERGING EQUITY FUND – GROWTH	6,501	31-05-2021	5,638
ICICI PRUDENTIAL BANKING AND FINANCIAL SERVICES FUND – GROWTH	6,054	31-05-2021	537
NIPPON INDIA BANKING FUND- GROWTH PLAN- GROWTH OPTION-INSURED	5,118	31-05-2021	4,438
IDFC STERLING VALUE FUND-REGULAR PLAN-GROWTH	4,713	31-05-2021	4,087

Samco’s Ratings for RBL Bank 

  RBL Bank Share Price: 0.5 out of 5 stars (Stock Rating Date: 17th Aug 2021) Check current rating of RBL Bank Share Price : https://www.samco.in/share-price/rbl-bank-ltd/RBLBANK/INE976G01028

Valuation Analysis :

 

From the investor’s perspective –

If the market price is significantly lower than the stock’s intrinsic value, the stock has a high margin of safety. It is a buy signal.

From a seller’s point of view –

If the market price is significantly higher than the intrinsic value, it a short sell opportunity. RBL Bank has a high margin of safety. Visit Samco’s share pages for to check the star ratings for everylisted company. Search for stocks to get live prices, ratings, valuation and analysis. Open a FREE Demat account with Samco and experience world class trading. Watch Best Banking Stocks to Buy in 2021 – How to Analyse Best Banking Stocks