Ratnakar Bank_Corporate Presentation

8/11/2019 Ratnakar Bank_Corporate Presentation

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CorporatePresentation

September 2013


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Contents

About Ratnakar Bank 3-15

A Legacy of 70 Years

2010: The New Beginning

A Strong Management Team & Board of Directors

Our Shareholders

Vision-2015

An Update on Our Journey So Far 16-26Capital Raising

Key Financial Indicators

Geographical Expansion

Acquisition of RBSs Businesses in India

An Update on Technology, Client Segments & Products

Summary 27


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A legacy of 70 years

A bank with roots into pre-independent India (established in

1943)

Established to fulfill the call of self reliance given during Indian

freedom struggle

Concentrated largely in Maharashtra, Karnataka and Goa till

2010

Currently on a transformational journey to become a new age

bank under a new management team

A network of 131 branches and over 225 ATMs which is

expanding continuously

About Ratnakar Bank


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Group of professionals coming together to build an institution focused on value creationfor all its stakeholders.

2010: The New Beginning

Professional

Team of industryprofessionals and stalwartscoming together

Meritocracy Foundation of the new

organization based on merit Reward for performance

Entrepreneurship Concept of Intra-preneur Each employee a co-owner

in the growth story ESOPs an integral part of

compensation

Strong CapitalBase

Significant capital raised frommarquee Investors to fundexpansion and be well abovethe adequacy norms

CorporateGovernance

Independent strong board Board managed bank

GrowthStrategy

Significant increase in branchnetwork and balance sheet

High investments in new ageproducts and services


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Our Goal is to be the Bank of Choice in our selected product,client and geographic segments

To develop a professionally governed and managed platform

based on relationships, knowledge, sector expertise and

technology to :

Build a customer-centric Retail Banking business

Identify and partner with SMEs and Emerging Large

Corporates with outstanding business models, providingthem a full range of financial services so as to enable them to

become world-class enterprises

Deliver robust and cost-effective banking services that

promote Financial Inclusion , catalyze growth and reduce

social inequalities

Our Mission


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Vishwavir AhujaMD & CEO

Ex-CEO, Bank of America India

30+ year long banking career

MBA (IIM-A), MS in Finance (U-Mich)

Rajeev AhujaHead of Strategy

Ex-Head, Investor Sales / Capital Markets, Citibank India

25+ year long career in Banking & Financial Services

MBA (IIM-A), B-Com (University of Delhi)

Nitin ChopraHead, Retail Banking

Ex-Head, Consumer Banking, ABN Amro India

Ex-CEO, Bharti AXA Life Insurance

MBA (IIM-A), B-Tech (IIT-Kanpur) L e a

d e r s

h i p E x p e r i e n c e

, N e t w o r

k

Highly Capable Management Team


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R GurumurthyHead, Corporate &Institutional Banking


Ex-Head FI Strategic Coverage Group at Standard

Chartered Bank

Ex head Corporate Banking, South India, Bank of America

Over 25 years of banking experience in India & Hong Kong

L e a

d e r s


, N e t w o r

k

Sunil GulatiChief Risk Officer

Ex-Group President, Chief Risk Officer, Head of Corporate Development at Yes Bank

MBA (IIM-A), B-Tech (IIT Delhi)

Shanta ValluryHead - Distribution

Ex-Vice President, Partnerships American Express

Was heading Retail Liabilities at ICICI Bank

MBA, Jamnalal Bajaj Institute of Management Studies


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Suhas SahakariHead - Kolhapur, Sangli &Belgaum Region

Ex-Head, SME Business, Axis Bank

Part of initial team at Axis Bank, Ex-SBI

Total banking work experience of over 30 years


Sandeep ThapliyalHead - CommercialBanking Coverage

Ex-Head of SME Business, Citibank India

Over 20 years of experience in Commercial Banking,

Corporate Banking, Project Finance & Investment Banking

MBA from MDI, Gurgaon

Andrew GraciasHead Financial Markets

More than 17 years of experience with MNC Banks

Ex-Head, Sales for Global Markets in India, for UBS. Ex-Bank of America

L e a

d e r s


, N e t w o r

k


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Surinder ChawlaHead Branch Banking

Over 20 years of retail banking experience acrossStandard Chartered, ABN Amro Bank and HDFC Bank.


Aseem GandhiHead DevelopmentBanking & FinancialInclusion

Ex-Head Microfinance Institutions Group, Project Lead -

Yes Sampann - Yes Bank

Manoj RawatHead Agri Business

18 Years of experience in Agribusiness

Worked with NABARD and Fullerton

L e a

d e r s


, N e t w o r

k


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Naresh KariaChief Financial Officer

Ex-Country Controller, Citibank NA India

Chartered Accountant

O p e r a t i o n a

l , C o r e

E x p e r i e n c e


Tajinder KumarHead Human Resources

Ex-HR Director of Asia Pacific Regional Group Tech & Ops

organization of Deutsche Bank AG in Singapore Over 22 years of HR Management experience in India &

Singapore

Joginder Singh Rana,

Chief Operations Officer

Has held senior leadership roles in Operations &

Technology, Sales, Collections, Risk, Compliance / Controland BPO at Citigroup

Over 21 years of Banking experience in India & overseas


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Sanjay SharmaHead Technology,

Innovation & CustomerFulfilment

Ex-MD & CEO, IDBI InTech Ltd Over 25 years of experience in technology

O p e r a t i o n a

l , C o r e

E x p e r i e n c e


Satish DhawanChief Infrastructure and

Administration Officer

Over 30 years of experience across Infrastructure andAdmin management

Ex-Citibank

Sanjit ChowdhryHead Wholesale Risk

Ex-Director- Barclays Bank Over 16 years of credit expertise


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Board of Directors

Subhash KutteChairman Non Executive Chairman 30+ year long career in the Bank

Vishwavir AhujaManaging Director & CEO Ex CEO, Bank of America India 30+ year long banking career MBA (IIM-A), MS in Finance

(U-Mich)

Girish Godbole Wide experience in the area of

micro-finance & co-operativesector

MBA (IIM-A), MA in Social Work -TISS

Bahubali Arwade Director since September, 2006 Wide experience in agriculture &

rural banking

Sudhir Rao Founder Director- Karvy Investor

Services

Jairaj Purandare Former Regional Managing

Partner- PWC

Kiran Patil MD - Ghatge Patil Industries

Limited Mechanical Engineer, MS

(Industrial Engineering) and MBA

Over 40 years of experience

Narayan Ramchandran Ex CEO & Country Head-Morgan

Stanley 23+ years finance and banking

career B.Tech (IIT, M), MS (U-Mich) &

CFA.

Vimal Bhandari MD & CEO of Indostar Capital

Finance Pvt Ltd.

D Sivanandhan Ex Director General of Police-

Maharashtra

Ajay Michyari GM with RBI


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FAERING CAPITAL

Global & Indian Institutions:

Global Private Equity Firms:

Indian Private Equity Firms:

Strong Shareholders


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Branches 89 Branches - 130 Branches 225

ATMs - 13 ATMs - 184 ATMS - 500

~300,000 ~450,000 ~900,000

700 ~1900 ~3300

Branches/ ATMs

No. of Clients

States

Mar10 Mar13 Mar15 Plan

Maharashtra,Karnataka, Goa

Maharashtra,Karnataka, GoaNCR, UP, TN, AP,MP, Gujarat

Maharashtra,Karnataka, Goa, NCR, UPTN, AP, MP, WB, Gujarat,Raj, Chhattisgarh, Punjab

Employees

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Our Vision-2015


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Employee Snapshot

565704

907

1328

1859

0200400

600800

100012001400160018002000

FY 09 FY 10 FY 11 FY 12 FY 13

Y-o-Y Headcount

1000

3000

5500

0

1000

2000

3000

4000

5000

6000

FY 11 FY 12 FY 13

Training Person Days

37%

46%

10% 7%

Age Classification

Less than 30 years

30 - 40 years

40 - 50 years

Above 50 years

Median Age of employees is 29 years

Gender Diversity


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An Update on

Our Journey So Far


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2010Asset

2013 OnwardsScale up2010-12Transformation

Governance Strengthen Board diverse

expertise Bring in highly reputed action

leadersOld Age Private Sector

Bank (since 1943) Low growth rate Strong rural and semi-

urban presence butunderutilized

Fragmented shareholderbase

Underinvested in moderntechnology, products etc.

Management Bring best-in-class talent fortop management roles

Attract highly trained mid-management

Shareholding + FinancialStrength

Consolidate fragmentedshareholding

Further institutional capitalraising

New Age Private Bank(2013)

Building scale Broaden client/ geographic

profile Leverage technology and

platform Expand products and

services Strong human capital Strengthen risk

management

8

Journey So Far


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Capital Raising

2014 /15Planned IPO

Jan11

INR 703 Cr investmentat price of INR 67 per

share

Mar13

INR 324 Cr investmentat price of ~ INR 110

per share

2009

Capital base of ~INR275 Cr


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Key Financial Indicators

0.97

0.360.2

0.110.00

0.20

0.40

0.60

0.80

1.00

1.20

FY 10 FY 11 FY 12 FY 13

349

10741130

1615

0

200

400

600

800

1000

1200

14001600

1800

FY 10 FY 11 FY 12 FY 13

19.11

12.33

65.73

92.47

0

10

20

30

40

50

60

70

80

90

100

FY 10 FY 11 FY 12 FY 13

11701905

4132

6376

15852042

4739

8341

FY 10 FY 11 FY 12 FY 13

Deposits

Advances

Deposits & Advances Net Worth

(in Rs Cr)

Net NPA(%)

Net Profit(in Rs Cr)

( i n

R s C r

)


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High Growth in Financial Parameters

Financial Metrics (INR Cr) FY 10 FY 11 FY 12 FY13 CAGR

Advances (Net) 1,170 1,905 4,132 6,376 76%

Deposits 1,585 2,042 4,739 8,341 74%

NII 59 95 187 257 64%

Non-Interest Income 13 19 67 126 113%

PBT 29 19 96 136 67%

Gross NPA / Gross Advances 2.3% 1.1% 0.8% 0.4%

Net Worth 350 1,077 1,131 1615

RoA 1.1% 0.5% 1.4% 1.1%

Other Income / Total income 18.3% 16.3% 26.4% 32.9%

Cost to income (%) 53.6% 83.1% 54.8% 59.2%

CAR (%) 36.0% 59.4% 22.7% 17.1%

Ratings from ICRA(An associate of Moodys Investor services)

:- Certificate of Deposits Program: ICRA A1+ Short Term Fixed Deposit Program: ICRA A1+ Medium Term Fixed Deposit Programs: MAA- with stable outlook


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Geographical Expansion

ExistingBranches

BranchesLaunched in

FY12

ProposedBranchesFY 13-14

131 Branches and over 225 ATMs

Strong presence along the NH-4 Belt National

Highway that runs from Mumbai to Chennai

along Maharashtra, Karnataka and Tamil Nadu

NH-4 belt is estimated to be one of Indias richest

per-capita income regions with strengths across

agriculture, industry and services Developing presence on NH 8 Belt- National

Highway that runs from Delhi to Mumbai via

Gujarat & Rajasthan.

Well diversified branch presence across metros,

urban, semi-urban and rural areas Significant ability to leverage franchise in rural

and semi-urban areasPlaces with

FI & AgriPotential


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Announced acquisition of RBSs Business Banking, Credit Cards & Mortgage

businesses in India

Good fit into our own organic growth plans

Accelerates the achievement of strategic objectives

Business diversification

Acquiring a profitable and healthy business, client fit

Gives us a high degree of CASA

Gives us a wider platform to compete with larger banks andimpending new licensees

Ready and able to consummate the acquisition

Strong Capital base

Organisational capability in place

Complementarity, No Overlap

Complementary lines of business with least conflict of customerrelated policies

Branch locations are in line with our expansion strategy

Acquisition of RBSs Businesses in India


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Finacle and Other Strategic ProjectsTechnology

Implemented Finacle 10. 3 (A new-age CBS platform fromInfosys)

Ganseva (a scalable platform for rural markets)

Innovation through strategic partnerships with NTT, IBM etc.

Awarded the Asian Banker Technology Implementation Award

for Best Core Banking ProjectOperations Set up a 400-seater National Operating Centre in Mumbai

ISO 9001:2008 QMS Certification achieved for NOC

Risk Management Systems (RMS)

Strengthen RMS through technology IMACs Scaled up human aspects through stronger teams,

specialization etc .


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ExperiencedManagement Team

Strong Systems,Processes & Risk Control

Product, DeliveryInnovation change gameto play to strengths

Wrap the Bank around thecustomer meet all needs

Commercial BankingExpansion into new

industry and tradesegments

Specific relationship teamsLaunching schematic SME

products

Agri and FinancialInclusion Group

Semi-urban and ruralunderserved; MSMEs,

AgriDeveloping expertiseinternally and forging

new alliances

Consumer/RetailBanking

Densify and expand branchnetwork

Revamp product suite &customer experience

Corporate &Institutional BankingWinners of the Future

Businesses which form partof the eco-system of largeMNCs / Indian corporates

Client Segments & Common Building Blocks


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Small BusinessAssociates

Employees

Personal BusinessOwner & Key

Decision MakersFamily

Wealth

Employees Salary Accounts .

Payroll cards Investments Offering Car / HL Loans Offerings Select personal Loans

Personal Wallet Home loan / Car loan Investments ,Online trading & MF GI & LI Savings account Fixed deposits LAP / LAS / LAG DEMAT Account

Business Associated Online Payments / CMS solutions Loan Against

receivable s

Family Wealth Trust deposits Family savings Accounts Online transfers in case

emergency Wealth Management

Business Wallet Loans & Advances . LC / BG CC / OD, Working capital Cash Management Merchant services Lease Rent discounting LAP Forex

Large Corporates &SME

Products & Services Business Convergence


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RatnakarBank

70 Years

Heritage

Robust Governance

ExperiencedManagement which

has Delivered

High QualityInvestors make up aStrong Capital Base

Healthy Financials,Low NPAs, High CARand Strong Growth

Summary


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28Presentation updated as on September 2013

Ratnakar Bank_Corporate Presentation

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