RBL Bank Limited
January 19, 2024
Page 11 of 22
supposed to be slightly higher in QoQ. For Q4, given the dynamics around the deposit cost,
conservatively, we will be able to maintain the NIM at the same stage. I will ask our to add up.
Ramesh Ramanathan: Jai, just to add, while growth has been very, very good, a large part of the growth in the quarter
is also back-ended across some of these products. So, you should see this yield improvement
happen in the next quarter...So, a lot of the translation will flow into Q4.
Jai: Sir, our ROA improvement trajectory in part is predicated on favorable NIM outcomes, right?
So, maybe given your stances in interest rate, maybe fourth quarter could be flattish as you said.
But, how confident are you on improving NIM for FY'25?
R. Subramaniakumar: There are two more pointers which will enable us to achieve this. One is the cost efficiency
which we will be able to achieve it, that is one which will add up to that. The second is the
provisioning part which we are working on. Both will also add up to it. Now, today, the operating
leverage has started and you would have seen that. Just as a pointer, the operating profit for 12
months increased by 33%, whereas my advance grew by 20%. So, the resultant benefit will also
flow into the next quarter which will help us to achieve this number.
Ramesh Ramanathan: And also on NIM, you should see some positive. To be very candid in the near term given the
dynamics of cost of deposits and all of that, we are being conservative, but sustainably as the
mix shifts more to retail this year benefits will come through.
Jai: On your deposit growth, right, so in the framework of FY'26 vision, I mean, we have been doing
fairly well in almost all of them, but the deposit growth is now 13%-odd, which is slightly slower
than loan growth. What are the levers to accelerate the growth from here onwards considering
the competition going to remain competitive? And in that context, do you sense any need to
tweak the deposit rates?
R. Subramaniakumar: We don't find a reason for tweaking with the percentage right now because of the four, five
points. First point is that we are increasing our ability to source the deposit from the current 500
plus branches to 1,300 touch points, which we have just started it with our 800 branches going
to do that liability through our digital journey. Digital journey was hitherto not available, now it
is available, it is already put under pilot in a few 50, 60 odd branches and we will be creating the
liability test at every touch points, that's one. The second, we have started the cross sell in respect
of our customer base off of the credit card, RBA. Already, we have just launched a product
called GO Account, which has been integrated with our LOS of our front end tractor, RBA
Finance and the pilot has been successful. So, we are going to expand it to the asset team, which
is on the sales team. On the floor, we have 1000 plus people working on the respective individual
products like housing loan, LAP loan and RBA and things. All these people will also be sourcing
our savings front. The third would be that the credit card which is that too we were not having a
journey, now the journey for the credit card to co-originate when opening savings fund account
and funding account through that is also going to start. So, there is a team which has been set up