TOPIC: RBL BANK

SUBMITTED TO: MR ABDUL RASHID

SUBMITTED BY: PALAK PORWAL
ENROLLMENT NO: 21FMUCHH010916INDEX
 INDEX
1. INTRODUCTION
1.1. Definition

2. GENESIS AND EVOLUTION

2.1. When it all Begin
2.2. Challenges and opportunities
2.3. where is it projected to move in future
2.4. Milestone Achieved

3. REGULATORY ENVIRONMENT
3.1. Scheme for Setting up of Wholly Owned Subsidiaries (WOS) by foreign banks in India
3.2. Branch mode or wholly owned subsidiary
3.3. Raising of Non-equity capital in India

4. FEATURES AND PLAYERS

4.1. Features of RBL Bank
4.2. Players of RBL Bank

5. IMPACT OF TECHNOLOGY
5.1. Passbook kiosks
5.2. RBL mobile App
 INTRODUCTION
1.1.DEFINITION :

• On August 6, 1943, Babgonda Bhujgonda Patil from Sangil and Gangappa Siddappa
Chougule from Kolhapur established Ratnakar Bank as a Regional Bank in Maharastra
with two branches in Kolhapur and Sangli. Formerly known as Ratnakar Bank, RBL
Bank is a private sector Bank with its headquarters in Mumbai that was established in
1943. Today it is providing services service’s to around 3.5 million customers through
its network of 245 branches and 374 ATMs. It offers a wide range of Banking products
and services under six verticals which are as follows:

1. Corporate and Institutional Banking

2. Branch and Business Banking
3. Commercial Banking
4. Agribusiness Banking
5. Development Banking and Financial Inclusion
6. Treasury and Financial Markets Operations

Small and medium-sized businesses (SMEs) and Business merchants in the Kolhapur-
Sangli region were its primary clients. The Reserve Bank of India Act, 1934 designated
the Bank as a scheduled commercial bank in 1959. It was referred to as an NH4 Bank
during this decade. It was granted a banking licence by the Reserve Bank of India in
1970. (RBI)
Vishwavir Ahuja took over as Managing director and CEO of the Bank in July
2010. The name of the bank was changed to RBL Bank Limited in August 2014.
 GENESIS AND EVOLUTION
2.1 WHEN IT ALL BEGIN
The Ratnakar Bank Limited was incorporated under the Indian Companies Act of 1913, and
on June 14, 1943, the Registrar of Joint Stock Companies, Kolhapur State, granted the bank a
certificate of incorporation. On July 5, 1943, the Registrar of Join Stock Companies granted
the bank a certificate of beginning operations. According to a special resolution adopted by the
bank’s shareholders on August 8 and no objection letter from the RBI dated that same day
August 26, 2014 the name of the bank changed to RBL.

2.2. CHALLENGES AND OPPORTUNITIES

STRENGTHS OF RBL BANK : Strengths are the resources and skills that the company can
employ to create, maintain, and grow a competitive edge in the market.
 • Wide geographic presence – RBL Bank has a wide-ranging dealer and associate
network that not only aids in providing customers with efficient services but also aids
in handling competitive issues in the regional banking sector.

• High margins compare to regional industry’s competitors – Even if RBL Bank’s

profitability is under pressure to decline, compared to its rivals, it is still generating
superior profit margins.

• Market leadership position – In the market for regional Banks, RBL Bank holds a
commanding position. It has aided the business in quickly scaling upthe success of new
goods.

• Strong brand recognition – The Regional Banks sector has a high level of brand
recognition for RBL Bank products. Due to this, the business is now able to charge
more than its rivals in the regional banking sector.

• Success of new product mix – RBL Bank offers its clients a wide range of product mix
possibilities. It assists the business in providing services to various consumer groups in
the Regional Banks sector.

• First mover advantage – in the oversaturated marketplace. RBL Bank's market share in
the sector of regional banks is growing quickly as a result of the new offerings.

WEAKNESSES OF RBL BANK: RBL Bank’s weaknesses might either be the absence
of strengths or the lack of resources or talents that the company now lacks. Leaders must be
determined whether the weakness exists as a result of strategic choice or a lack of strategic
preparation.

• Extra cost of building new supply chain and logistics network – The financial industry's
business model has been drastically affected by the internet and artificial intelligence,
and because the dealer network is becoming less important, RBL Bank must create a
new, solid supply chain network. That might be very pricey.
 • Business model – of RBL Bank is simple for rivals in the regional banks sector to copy.
Company name must create a platform model that can combine suppliers, vendors, and
end users in order to overcome these obstacles.

• High turnover of employees – The RBL Bank is likewise concerned about at the lowest
levels. To retain the talent within the company, it may result in greater wages.

• Loyalty among suppliers is low – Given the history of RBL Bank coming up with new
innovations to drive down prices in the supply chain.

• Low investments into RBL Banks customer-oriented services – This may provide
rivals an advantage in the near future. RBL Bank has to spend more money on R&D,
especially for programmes that are focused on customer service.

• Declining per unit revenue for RBL Bank – Profitability is under threat due to industry
competition among regional banks. Assessing the current value propositions of the
various goods with objectivity is a good place to start for company name in managing
this scenario.

OPPORTUNITIES OF RBL BANK: Opportunities are places where a company may

be able to see potential for growth, earnings, and market share.

• Increasing customer base in lower segments – Customers must switch from

unorganised to licenced players in the financial sector. It will give RBL Bank the chance
to enter the entry level market with a straightforward proposition.

• Lowering of the cost of new product launches through third party retail partners and
dedicated social network. RBL Bank can use the emerging trend to start small before
scaling up after initial success of a new product.
 • Opportunities in online space – Customer’s increasing use of online services will also
make it possible for RBL Bank to offer new products to customers in the regional
banking sector.
• Low inflation rate – More market stability is brought about by the low inflation rate,
which also enables RBL Bank customers to obtain loans at reduced interest rates. As a
result, more people will use RBL Bank products.
• Local collaboration – Partnerships with regional players may potentially present the
RBL Bank with chances for expansion into foreign markets. While RBL Bank may
bring global procedures and execution expertise to the table, the local companies only
have local competence.

• Increasing government regulations are making it difficult for un-organized players to

operate in the Regional Banks industry. This can provide RBL Bank an opportunity to
increase the customer base.

THREATS OF RBL BANK: Threats are factors that can be potential dangers to the
firm's business models because of changes in macro-economic factors and changing
consumer perceptions. Threats can be managed but not controlled.

• Changing political environment – with the US and China trade war, Brexit's effects on
the European Union, and general instability in the middle east, RBL Bank's business
could be impacted both locally and internationally.

• Commoditization of the product segment – The greatest difficulty facing RBL Bank
and other participants in the market is the rising commoditization of the products in the
financial sector.

• Shortage of skilled human resources – A shortage of trained human resources may soon
arise due to the high employee turnover rate and growing reliance on creative solutions.

• Competitors catching up with the product development – Even though RBL Bank
currently leads the Regional Banks segment in product innovation. It is up against tough
competition from both domestic and foreign rivals.
 • Changing demographics – As the baby boomers retire, the younger generation is
struggling to fill their place as consumers. RBL Bank may see an increase in short-term
profitability as a result of this, but long-term margins may decline because young
people are less brand loyal and more willing to try new things.

• Competitive pressures – As the financial sector's new product launch times shorten.
Players like RBL Bank have experienced increased competitive pressure as a result.
RBL Bank is unable to quickly adapt to the demands of the narrow markets that
disruptors are concentrating on due to the size of their client base.

2.3. WHERE IS IT PROJECTED TO MOVE IN FUTURE:

RBL Bank is seeking Buyers for its Rs 105-crore loan exposure to future corporate resources
PVT Ltd (FCRPL) which holds a majority stake in Future Coupon, a 51:49 joint venture with
Amazon, said people with knowledge of matter.

RBL is looking for proposals for 25 business loans, according to the sources, including FCRPL.
Following a protracted two-stage merger of 19 Future Group firms with Future Enterprises and
a slump sale to Reliance Group entities, the decision to sell it was made.

The first private bank to solicit bids for a Future firm is RBL. The Kishore Biyani-promoted
group of firms are the subject of loans from over a dozen lenders totaling more than Rs 25,000
crore.

2.4. MILESTONE ACHIEVED:

o 1943
The bank was incorporated as “The Ratnakar Bank Limited” in Kolhapur State, India.

o 1959
The Bank’s name was entered in the second schedule to the Reserve Bank of India Act, 1934,
by the Reserve Bank of India.
 o 1970
The Bank received a licence to carry on banking Business in India from the Reserve Bank of
India.

o 2011

The Bank was granted a license to operate as an authorised dealer category-1 and deal in
Foreign Exchange, by the RBI

o 2014
The Bank received a certificate of registration to act as a merchant Banker from SEBI

AWARDS AND ACCREDITATIONS:

o 2012
“Best Core Banking Project Award for India” by the Asian Banker Technology Implementation
Awards.

Business Today – KPMG study deemed the bank the winner in “Growth (Mid-sized bank)”
Category.

o 2013
Chosen as “India’s Best Bank – Growth (Mid-sized bank)” by Business Today.

“The Best India Banker (Small Sized)” by Sunday Standards Best Bankers Award.

o 2014
“The Fastest Growing Small Bank” by Business World Magna Awards.

Selected as a “World Economic Forum Global Growth Company, 2014” by the World
Economic Forum.

Selected as “Best Bank – Priority Sector Lending (Private Sector)” at the Dun & Bradstreet -
Polaris Financial Technology Banking Awards, 2014, by Dun & Bradstreet India.
 o 2015
Business Today – KPMG study recognized the Bank as the “Best Overall Bank (Small)”, the
“Best Bank (Growth)” and the “Best Bank (Quality of Assets)”.

“The Fastest Growing Small Bank” by Business World & PWC Best Bank Study.

Selected as “Best Private Sector Bank – Priority Sector Lending” at the Dun & Bradstreet
Banking Awards, 2015.

Received the “IDRBT Banking Technology Excellence Award” for the year 2014-2015 for
“Use of Technology in Financial Inclusion” among small banks

“Innovation Award” presented for the Bank’s Co Brand Program and Credit Card Program by
MasterCard.

o 2016

Best Corporate Payment Project at The Asian Banker Technology Innovation Awards.

Innovation Award for The Debit Card Program by Mastercard.

RBL Bank Ltd are listed and admitted to dealings on the Exchange in the list of 'B' Group
Securities.

"RBL Bank acquires 9.99% stake in Utkarsh Micro Finance Ltd".

"RBL Bank, Neo Growth and OPIC Sign Commitment for SME Financing to Retail Businesses
in India".

RBL Bank enters into agreement for co-branded credit cards.

"RBL Bank becomes the first Indian bank to launch Aadhaar Payment Bridge System for small
ticket micro-finance loan disbursements".
 REGULATORY ENVIRONMENT
3.1. Scheme for Setting up of Wholly Owned Subsidiaries
(WOS) by foreign banks in India:
The Reserve Bank of India ("RBI") published a scheme on November 6, 2013 ("Scheme")
enabling the establishment of wholly owned subsidiaries ("WOS") by international banks in
India. The Scheme permits international banks with branches in India to conduct business there,
as well as through the establishment of a WOS that would receive close to national treatment.

3.2. Branch mode or wholly owned subsidiary:

It has a network of 502 branches and 414 ATMs spread throughout 28 states and union
territories as of March 2022. It employs 9,257 people. The Bank also maintains a network of
1418 business correspondent branches, of which RBL Finserve Limited, a fully owned business
correspondent of the Bank, oversees 870 of them.

3.3. Raising of Non-Equity capital in India:

RBL Bank, a tiny private sector lender, announced on Friday that it has obtained Rs 1,566 crore
in new capital through the preferential sale of shares to a group of investors headed by Baring
Private Equity Asia. The bank plans to invest in additional products including affordable
housing loans after the fund-raise to boost its position. According to managing director and
chief executive Vishwavir Ahuja, the semi-urban and rural markets are served.
 FEATURES AND PLAYERS
4.1. FEATURES OF RBL BANK
• Welcome benefits: When a cardholder first joins the RBL Credit Card programme, they
are given welcome benefits. These might come in the shape of extra Reward Points,
gift cards, or other kinds of advantages. Generally, in order to receive welcome benefits,
cardholders must pay the joining charge.
• Reward Programs: Different RBL Bank Cards provide various rewards schemes.
Customers of some cards receive rewards in the form of points, while those of others
receive cashback. Additionally, the reward rate can range for certain cards and
categories.
• Travel Benefits: With an RBL Credit Card, you might receive free access to domestic
and international airport lounges, deals on purchasing flights and hotels, and more
travel perks.
• Dining & Movie Benefits: The RBL Bank also provides some fantastic dining and
entertainment privileges like buy one get one free (BOGO) offers on movies, discount
offers on dining, etc., bearing in mind that many people enjoy watching movies and
dining out.
• Other Benefits: In addition to the mentioned features and advantages, RBL Bank credit
cards also come with a number of privileges, such as waivers of yearly fees based on
spending and fuel surcharges.
4.2. PLAYERS OF RBL BANK:

Since January 25, 2016, Prakash Chandra has

been a member of the Bank's board. He graduated from the University of Allahabad with a
Bachelor of Science (B.Sc.) and a Bachelor of Laws (LL.B.). He also has a Development Policy
diploma from the University of Glasgow in the United Kingdom.

Prakash is currently a member of the Supreme Court and High Court Bar Associations and a
practising advocate.

He has also provided advice to the Indian government's Department of Personnel and Union
Public Service Commission.

He worked for the Indian Revenue Service (IRS) of the Indian Government for 38 years as an
Indian Revenue Officer.
 R Subramaniakumar is the Managing Director &
CEO at RBL Bank. He has 40 years of experience working in the banking sector.

Subramania kumar holds a PGDCA (Post Graduate Diploma in Computer Application) and a
degree in physics. He has qualifications from ISACA, USA, in CISA (Certified Information
System Audit) and CISM (Certified Information Security Manager). He holds an Advanced
Banking Certificate from the University of Maryland in the United States and is a banker with
the CAIIB (Certified Associate of Indian Institute of Bankers).

He led the transition across domains while serving as the Managing Director, CEO, and Board
Chairman of Indian Overseas Bank before joining RBL Bank. Additionally, he has worked as
an executive director for Indian Overseas Bank and Indian Bank.

When the pandemic hit, he was hired as an Administrator at Dewan Housing Finance
Corporation Limited (DHFL), where he successfully settled a debt in a first for the nation.
 Rajeev Ahuja is the Executive Director of RBL
Bank and has over 30 years of experience in the financial services industry.

Rajeev has a Master of Business Administration from the IIM, Ahmedabad, and a Bachelor of
Commerce from the University of Delhi. He went to New Delhi's St. Xavier's School.

Rajeev has had significant positions in investment banking and the financial markets during
the course of his career. He oversaw Citigroup's investor sales unit in South Asia before joining
RBL Bank. He also spent a considerable amount of time working for Deutsche Bank in Asia's
capital markets and investment banking departments.

Additionally, he is in charge of the Bank's duties related to investor relations, business

development, and capital raising.
 Ishan Raina is on the Board of the Bank since April 30,
2016.

Ishan has a B.Com (Honors) in business administration from the Sriram College of Commerce
(SRCC), New Delhi, a diploma in international law and diplomacy from the Indian Academy
of International Law & Diplomacy, New Delhi, and a postgraduate management diploma
(PGDM) from the Indian Institute of Management (IIM), Calcutta. He is also a Boston-based
Harvard University Advanced Leadership Initiative Fellow for 2016.

Ishan is the founder and current chairman of Raina Advisory and a consultant to the National
Skills Development Corporation. He provides guidance and support to top management teams
across a range of industries to help individuals find employment and a means of subsisting.

Ishan has worked in media and advertising for 35 years. He was on the Global Management
Board of Havas Global, which has offices in Paris and New York, and was the founder,
chairman, and joint venture partner of Havas in India (Euro RSCG Advertising and MPG
Media). In India, he founded and served as Chairman of Out of Home Media (OOH Media)
Pvt. Ltd. and Ignitee Digital Solutions.
 Veena Mankar is on the Board of the Bank since
October 22, 2019. Veena graduated with a Bachelor of Arts in Economics from Lady Shree
Ram College in the University of Delhi. She also holds a Post-Graduate Diploma in Business
Administration from the Indian Institute of Management in Ahmedabad.

Veena sits on the board of the IDFC Foundation and is the non-executive chair of RBL
FinServe Ltd. She formerly held positions on the Governing Board of Sa-Dhan, as an
Independent Director for Liberty General Insurance Limited, as the Independent Non-
Executive Chairperson of IDFC First Bank Limited, and on the Boards of Factoring JVs in
India, Egypt, and Dubai.

She founded two companies under the Swadhaar name and has been actively involved in
financial inclusion for more than ten years. Swadhaar FinServe Pvt. Ltd. and Swadhaar
FinAccess (now RBL FinServe Ltd., a subsidiary of RBL Bank) (SFA).
 Ranjana Agarwal is on the Board of the Bank

since November 30, 2019. Ranjana received her economics degree from Delhi University's
Lady Shri Ram College and completed her training as a certified public accountant at Price
Waterhouse Coopers.

She now serves on the boards of UGRO Capital Limited, ICRA Online Limited, Shubham
Housing Development Finance Company Limited, Joyville Shapoorji Housing Private
Limited, KDDL Limited, and Indo Rama Synthetics (India) Limited.

She established Vaish & Associates, Chartered Accountants and serves as its managing partner.
She has more than 30 years of experience in audit, tax, and associated services, such as
succession planning and business appraisals. Up until 2000, she was a partner in both CC
Chokshi & Co. and Deloitte Haskins & Sells.
 IMPACT OF TECHNOLOGY:

5.1. PASSBOOK KIOSKS:

To enhance customer experience, RBL has introduced Self-Service Kiosk in our branches.
Customers can now print their own passbooks at this Self-Service Kiosk without having to
stand in line at a branch.

Salient features:
• Avoid waiting in queues at branch
• Print Saving account and recurring Deposit Passbook
• User friendly screens, making it easier to use
• Customer identification is done through bar code. Hence there is no need to insert the
account details manually.

5.2. RBL MOBILE APP:

RBL Bank MoBank App Access your RBL Bank account anytime, anywhere. RBL
MoBank – the best mobile banking app that helps you do most of your online banking
transactions on your smartphone.
What’s new in RBL MoBank App :
1. Customer Experience: One touch call to the contact-centre in the pre-login section. In the
post log-in section you can request a call-back and we will get in touch with you.
2. Manage your debit card: Now block/unblock your Debit Card, set transaction limit and get
transaction history through the app.
3. Loans and Credit Cards: Apply for RBL loans and RBL credit cards through RBL Mobank
app.
4. Customized Account Statements: Download and email customized account statements as
per your requirement.