RBL Bank Ltd IPO Message Board (Page 58)

on portfolio front i have taken position in sonata software

Wow sir good share dividend yealding is V.good

Ty sir will start collecting this share

A big avoid fair value 157
GMP is fake retail will be looted get ready for LT info

Eagle ji your Review for rbl

Bubbly valuation compare to last two financial stream IPO however this will be a big hit given quality of promoters and will list a premium even with a PE of 23 if you look at CARG is 50% plus would love to own a company with 50% CARG is high demand company so I am going to apply one first day .... no need fair value last day subscription just apply and hope u get allotment.... if u do get allotment then buy on listing

Seems very expensive as its NIM is less than 3 and ROA less than 1.Everyone wants to make a quick buck at the cost of investors

atul kumar u r 100% right when u compare indian banks with listed european bank and US banks indian bank on valuation front is very expense

Eagleye
Plz post current gmp of dilip buildcon, SP and RBL and what is your view for listing of DB..........

Hi All,
P/E ratio RBL is around 23
P/E ratio of Yes bank is around 19

NPA''s are very minimal to the yes bank. it has very good track record and lending strategies are too good.. In my opinion it''s better to invest in YES Bank compared to RBL.

100% correct however Imo u should also put application to this IPO FIIs will lap this in no time . Presently majority of private bank is owned by Fiis even this one will be the same

Initial comments :

Good ipo with classy balance sheet(as shown by lokeshji and other members)

My view:
200 price band seems very attrective if it were..but 225 also okay..

Grey mkt kostak 1200 plus milta hai to bech do (assuming min 3.5x in retail)

..otherwise apply...

850 GREY

I have it will be subscribe around 4 to 5 times.

Can anybody guess/idea about what will be the subscription figures in retail (how many times it will be subscribed).

Eagleye plz throw some light.

I think, RBL subscribe in retail around 4 to 5 times.

Good IPO must subscribe

RBL BANK LTD. IPO : Analyst Meet held on 10th August 2016 :

On-the-Spot Takeaways :

RBL Bank Ltd. is the new avatar of the erstwhile Ratnakar Bank Ltd., with a 73 year old history. The current transformation of this bank commenced in 2010, following which RBL Bank Ltd has emerged as one of India''s fastest growing banks.

Business Segments :

● Corporate & Institutional Banking (C&IB)
>> This segment accounts for 38.56% of the total net advances.
>> Focuses on transactional non-fund based business.
● Commercial Banking (CB)
>> This segment accounts for 21.26% of total net advances.
>> Focuses on the finance and business needs of SMEs
● Development Banking and Financial Inclusion (DB&FI)
>> This segment comprises 14.76% of the total net advances.
>> Entering and expanding in this segment through carefully selected partners.
● Agribusiness Banking (AB)
>> This segment accounts for 8.27% of the total net advances.
>> Apart from core farm banking, also entering into rural areas through branchless banking.
● Branch and Business Banking (BBB)
>> This is a new business started in 2015, combining the retail banking and the branch business banking segments.
>> This business comprises 17.15% of total net advances.

Key numbers discussed :

● 1.9 million customers
● 197 branches and 362 ATMs
● 16 states and UTs
● Advances growth of 51% CAGR between FY12 and FY16.
● Total Income grew at a CAGR of 57% in the last 4 years.
● Net Interest Margin (NIM) stood at 2.96% in FY16.
● Return on Assets (ROA) stood at 0.98%
● Capital Adequacy Ratio (CAR) stood at 12.94%
● GNPA stood at 0.98 while NNPA stood at 0.59
● Cost to Income Ratio (CIR) stood at 62.5%

The way forward and outlook :

● Asset quality will be maintained going as the bank follows robust risk management practices.
● All operating level mistakes were committed in the early years so RBL is over with the learning curve. Thus CIR will come down going forward.
● Focus will be more on the high usage of technology, following the "High Tech, High Touch" mantra.
● CI&IB business to focus on working capital driven non-fund based business.
● DB&IF business has 1.5 million customers and will be driven by partners.
● In the BBB vertical customers to be acquired as borrowers and then be converted to full fledged banking customers.
● Although 95 of the 197 branches are in Maharashtra and Karnataka, initially 78% of the business was from these 2 states. Now its around 45%, bringing significant de-risking.

Quick Outlook :

At the Price Band of 224-225, RBL comes at a P/E of around 28, slightly higher than its larger peer Yes Bank (20.86) and its other smaller peers. The ROA of 0.99 is also lower than its peers. So though we believe the valuation is rich , prima facie the stock is a "Subscribe" from a long term perspective, with possibility of some listing gains.

** P/E of around 23

Few mistakes
1.We should not value a Bank with PE multiple
2. comparison with Yesbank is also not fair.

My view
It is comparable with CUB which have close to 525 branches. by considering growth rate its look attractive but what about RBL''s profitability ratio which is not at par with its private peer. At 225 RBL would available at 2.45X of FY16 book value and so CUB also available at same multiple but with better financial ratio. So wise investor can take there own call weather want to go with Issue or not.

Any idea about gross not performing asset

Brought 2000 shars of RBL at Rs.10 In 2006 :) :)

Hi Sandeeps, how did you buy in 2006?

directly from bank... 2006 uss waqt bank ko capital ki jarurat thi so jin ka bhi The Ratnakar Bank limited ( now RBL) me saving account tha aur jinko shars chahye the unhe Rs.10 me allot kiye gaye. bad me 2010 me Vishwavir Ahuja ki entry huyi aur bank ke aur shareholders ke din badal gaye.

Kostak?????? Pls

Highlights during the period : 
(Rs in Cr)
                  
       FY2012       FY2016       CAGR (%)
Total Income          532.22       3,234.85       57.02%
Other Income            67.13          490.54       64.42%
Net Profit after Tax           65.10          292.48       45.59%
Other Deposits       4,739.33      24,348.65      50.55%
Advances       4,132.27      21,229.08      50.54%

Background – Company & Promoters

Company and promoters :-
Incorporated on June 14, 1943, RBL Bank Limited (“RBL”) a small Regional Bank in Maharashtra commenced their operation with 2 Branches in Kolhapur and Sangli. In August 1959, they were categorized as a “Scheduled Commercial Bank” within the meaning of the Reserve Bank of India Act, 1934. Though RBL has a 73-year operating history, they have transformed themselves in the past 6 years from a traditional Bank into a ‘New Age’ Bank while harnessing their heritage, relationships with customers and domain strengths.

- Mr. Narayan Ramachandran is a non-Executive, non-Independent Director and the part-time Chairman of the Bank. He has wide experience in the field of Finance and Banking.
- Mr. Vishwavir Ahuja is the Managing Director & CEO of the Bank. He has about 35 years of experience in the Banking and Financial Services sector.
- Mr. Rajeev Ahuja is the Head – Strategy, Retail, Transaction Banking and Financial Inclusion, of the Bank. He has about 30 years of experience in Investment Banking and Financial Markets.

Business Overview

RBL Bank Ltd (“RBL”) is one of India’s fastest growing private sector banks in the last six years. It offers a comprehensive range of banking products and services customized to cater to the needs of Large Corporations, Small and Medium Enterprises (“SMEs”), Agricultural customers, Retail customers and Development Banking & Financial inclusion (low income) customers.

As of March 31, 2016, RBL has 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories serving over 1.9 million customers.

As part of the growth strategy, RBL acquired certain Indian businesses of the Royal Bank of Scotland (“RBS”), including the RBS’s Business Banking, Credit Card and Mortgage Portfolio Businesses, in Fiscal 2014.

As On March 2016 (Rs. In Crs)

Share Capital      324.73
Reserves      2,663.51
Net Worth       2,988.24
Interest Earned      2,744.31
Other Income      490.54
Total Income      3,234.85
Total Income Growth (%)      37.27%
Profit  Before Tax      428.01
Net Profit after Tax      292.48
PAT as % to revenue      9.04%
EPS (Rs.)      9.6
RoNW (%)      9.79%
NAV (Rs. per share)      92.02
CAR (Capital Adequacy Ratio)(%)      12.94%
ROE  (Return on Equity )(%)      11.32%
ROA ( Return on Assets) (%)      0.98%
NIM (Net Interest Margin) (%)      2.96%

what is book value and roe of rbl bank ?