MOSL: THE CORNER OFFICE (RBL BANK) — ROA improvement on track
THE CORNER OFFICE (RBL BAnk) — ROA improvement on track
Mr. Rajeev Ahuja, Executive Director
Mr. Rajeev Ahuja, ED at RBL Bank, brings over 28 years of experience in the financial services industry. He is responsible for building the overall strategy of the Bank while managing the Retail Banking, Transaction Banking and Financial Inclusion businesses of the Bank. In the course of his tenure in the banking industry, he has held key positions in investment banking and financial markets in India, Singapore and Hong Kong. Prior to joining RBL Bank, Rajeev was MD - Investor Sales Business (South Asia) with Citigroup, India. Rajeev has also had a 7 year stint as a Director in the capital markets and investment banking divisions of Bankers Trust/Deutsche Bank in Singapore and Hong Kong.
Rajeev holds a Masters in Business Administration from IIM-A and a Bachelor's degree in Commerce from the University of Delhi. He attended St. Xavier’s School in New Delhi.
We met Mr. Rajeev Ahuja, ED of RBL Bank Ltd. He spoke at length on the bank’s key asset products and the strategy that the bank will follow to build its liability franchise and the branch network. Key takeaways:
- He believes there is re-intermediation of credit from the bond markets, which should drive credit growth for the banking system going forward
- RBL bank is very much on track to achieve 35%+ loan CAGR over FY18-FY20E on back of growth across asset products. The momentum in credit card and micro finance institution (MFI) business remains strong while management sounded a bit cautious on SME exposure owing to inadequate collateralization levels and yet to return normalcy post the impact of demon and GST
- Margin improvement for RBL Bank would primarily be driven by changing its loan mix towards higher yielding loans, thus, resulting in higher yields. The cost of funds will remain elevated in near term however the increased pricing power is helping banks to completely pass through the costs. RBL has increased its 6m/12m MCLR by 40bp/55bp since Apr’18.
RBL Bank Limited is a banking company. The Bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, agriculture finance and financial inclusion, treasury operations and other banking related activities. The Bank's segments include Corporate/Wholesale Banking, which includes lending, deposits and other banking services provided to corporate customers of the Bank; Retail Banking, which includes lending, deposits and other banking services provided to retail customers of the Bank through branch network or other approved delivery channels; Treasury, which includes investments, all financial markets activities undertaken on behalf of the Bank's customers, trading, maintenance of reserve requirements and resource mobilization from other Banks and financial Institutions, and Other Banking Operations segment, which includes para banking activities, such as Bancassurance and credit cards.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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