Rbl bank a unique model – on a fast lane

9/23/2021 RBL Bank: A unique model – on a fast lane – Detailed Report
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Initiating Coverage | 10 November 2016
Sector: Financials
RBL Bank
Improving
return profile
Strong growth
Investment phase
A unique model - on a fast lane
Sohail Halai (Sohail.Halai@MotilalOswal.com); +91 22 3982 5505
Alpesh Mehta (Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
RBL Bank
Contents

A unique model – on a fast lane ............................................................................ 3
Story in charts ...................................................................................................... 5
Story in charts ...................................................................................................... 6
Pedigreed leadership; pristine governance ............................................................ 8
On the highway to accelerated earnings growth .................................................. 14
Corporate and Institutional Banking.................................................................... 16
Commercial Banking (CB) .................................................................................... 18
Branch and Business Banking (BBB)..................................................................... 19
Development Banking and Financial Inclusion (DB&FI) ........................................ 21
Agribusiness Banking (AB) .................................................................................. 22
Poised for operating leverage benefits ................................................................ 23
Financial performance ........................................................................................ 26
Initiating with Buy .............................................................................................. 33
Key risks ............................................................................................................. 36
Bull & Bear case ................................................................................................. 37
Financials and valuations .................................................................................... 38
10 November 2016 2
RBL Bank
Initiating Coverage | Sector: Financials - Banks
RBL Bank
Buy
BSE Sensex
27,253
S&P CNX
8,432
CMP: INR376 TP: INR450 (20%)
A unique model – on a fast lane
Stock Info
Bloomberg RBL IN
RoA improvement of 40bp, EPS CAGR of 40%+ over FY16-19E
 RBL has been in existence since past 73 years; the bank underwent the

Equity Shares (m)
52-Week Range (INR)
M.Cap. (INR b)
M.Cap. (USD b)
361.7
274/405
134.9
2.1

Financial Snapshot (INR b)
2016 2017E 2018E
Y/E March
NII 8.2 12.5 16.3
OP 5.4 9.0 12.2
NP 2.9 4.5 6.5
NIM (%) 2.7 3.0 3.1
EPS (INR) 9.0 12.5 18.1
EPS Gr. (%) 27.6 38.4 45.1
BV/Sh. (INR) 92.0 114.4 129.0
RoE (%) 11.2 12.6 14.9
RoA (%) 0.9 1.0 1.2
P/E(X) 42.2 30.5 21.0
P/BV (X) 4.1 3.3 2.9
P/ABV (X) 4.2 3.3 3.0
Div. Yield (%) 0.4 0.5 0.8
Shareholding pattern (%)
Sep-16
Promoter
Public
Others
-
100
-


transformation as new management took control in FY10. RBL has turned around
the corners in key operating parameters (loan CAGR of 62% over FY10-16,
earnings CAGR of 58% FY10-16, RoA of 0.9% v/s 0.2% in FY11 and Tier I of 12.5%).
RBL has adopted a unique business model whereby a) the bank has adopted a
linkages based approach to agricultural lending, b) has used large corporate
accounts as an entry strategy to gain access to their supply chain ecosystem, and
c) has strategically acquired business banking clients in the emerging sectors
(primary bankers to gain lion’s share of their wallet).
We strongly believe RBL has a potential to generate significant returns in the
next three years led by (1) pedigreed leadership team, which is driving high-
quality loan growth (CAGR of 37% over FY16-19E), (2) niche business model, (3)
improvement in core income, driving down cost-to-income (C/I) ratio by ~7%,
We expect robust EPS CAGR of 40%, with RoA improving by ~40bp and RoE by
670bp. Steady asset quality, structural change in balance sheet and Strong
improvement in profitability to continue to drive re-rating. We initiate with a Buy
and a TP of Rs450 (3x FY19 BV).
A Unique business model
RBL has created a niche for itself in the agri-lending space, whereby, it caters to
the entire supply chain in this segment (following a needs based approach –
tractor, irrigation loans, warehousing facilities). We believe the bank has
cracked the right business model in a difficult (yet rewarding) segment,
evidenced by agri NPAs of just 0.6% (as against banking system NPAs of >5%).
RBL is treating the acquisition of large corporate as the means to gain access to
their vendor base and high quality salaried accounts. Moreover, the bank
realizes the importance of early stage acquisition of high quality SMEs. This will
not only benefit them in terms of higher margins, but also enable the bank to
piggyback on the success and growth of these emerging corporates (increasing
business and fee income over the entire lifecycle)
A unique model – on a fast lane
RBL Bank
Well poised for accelerated, high-quality growth
Having initially focused on overhauling risk management architecture (toward
high quality) and identified its niche growth engines, RBL is now poised to
accelerate its loan growth (FY16-19E CAGR of ~37% compared to system
average of +12-13%). Given that the bank is well capitalized post its recent IPO
(CET1 of 12.5%), we expect RBL’s market share to double over next five years,
but will still remain less than 1%.
+91 22 3982 5505
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Sohail.Halai@motilaloswal.com
Sohail Halai
10 November 2016 3
RBL Bank
Core income acceleration
and operating efficiency
should drive ROAs up by
40bp
Primed for operating leverage benefits
RBL’s business transformation has coincided with significant investments in human
capital (senior management), service offering (product suite), customer acquisition
(including inorganic portfolios), technology and brand building (branch expansion
and re-branding). All these capacity-building measures have reflected in C/I ratio,
which rocketed by ~16% during the investment phase (59% in FY16). With significant
capacity already in place, RBL is now primed to sweat its investments and benefit
from improving operating efficiencies. Led by sharp improvement in core income
growth, we expect C/I ratio of ~51% by FY19, as against 59% currently.
Sharp improvement in return ratios; EPS CAGR of ~40%
We expect core income (as % of assets) to improve ~90bp over next three years, led
by a) margin improvement of +60bp and b) rising share of fee income. While ageing
of branches will drive operating efficiency, continued expansion will keep cost to
assets at ~2.5%. We expect asset quality to remain stable; however, on a prudent

basis, we factor in a 10bp rise in credit cost to 0.55%. Overall higher share of core
income should drive RoA improvement of ~40bp to 1.3%, and strong growth (in turn
higher leverage) is likely to push RoE higher by 670bp to 18%. Considering the strong
growth and investment phase, current capitalization may not be sufficient for more
than two years. Thus, another round of capital infusion is possible in FY19, which,
however, is not factored in our estimates. Overall, we expect EPS CAGR of ~40%
over next three years, highest for our coverage universe.
Governance transformation led by pedigreed management team
With the hiring of a pedigreed leadership team in 2010, RBL undertook a massive
makeover exercise, encompassing: (a) governance transformation (a highly
independent and professional Board), (b) revamped risk management framework
and (c) a new “fresh start” brand identity. Top management is adequately
incentivized with outstanding ESOPs at 9.4% of the capital base, and ~67% of its
employees are covered under the ESOP plan.
Initiate with Buy; valuing the bank at 3x FY19E BV
We value RBL based on the residual income (RI) model and build in 40%+ EPS CAGR
over FY16-19. We factor in average 18% growth in the explicit period (FY19-36) and
terminal growth rate of 5%. We also factor in cost of equity of 13.6%, with RF of
7.25%, beta of 1.3x and risk premium of 5.0%. At our target price of INR450, the
stock would trade at 3x of FY19E BV of INR149 and 18x of FY19E EPS. We believe
RBL deserves significant premium compared to peers, considering its industry
leading growth rate, improvement in profitability and pristine asset quality.
Key risks
a) Relatively unseasoned loan book.
b) Heightened dependence on wholesale deposits during high-growth phase.
10 November 2016 4
RBL Bank
Story in charts
Exhibit 1: Loan book to grow at 34% CAGR until FY21
Loans (INR b)
932
34
Exhibit 2: Deposits to keep pace with loan growth
Deposits (INR b) 35
717
551
58
15
1,102
842
638
23
62
4 5 5 6
64 98
8 12 19 41
144
212
303
408
8 9
116 171
47 83
9 11 13 16 20
243
337
464
denotes phase-1 CAGR
Source: MOSL, Company
Exhibit 3: Book value CAGR of 18% over FY10-16
BV/Sh (INR)
18
129
149
209
175
Exhibit 4: EPS growth has picked up since FY14
EPS (INR)
36
25
42.0
32.1
- 30
8
18
92
114
12
18

34
23 19 28 31 33
63
50 53 74 76
0
-5
0 2 3 2 0
3 4 3 7 9
Exhibit 5: Loan book mix (%) – FY16
Development
banking &
Financial
Inclusion
15
Exhibit 6: Deposit mix (%) – FY16
Current
10
Corporate and
Institutional
Banking
39
Term
80
Savings
10
Agri
Banking
8
Branch and
Business
Banking
17
Commercial
Banking
21
Source: MOSL, Company Source: MOSL, Company
10 November 2016 5
RBL Bank
Story in charts
Exhibit 7: GNPAs at less than 1% in last five years
10.3
7.6
6.8
Gross NPA (%)
1.9
6.0
2.1 2.3
0.7
1.6
1.1 0.8 1.0 1.1 1.4
0.4 0.8 0.8
1.1 1.1
1.4
0.8
0.4
1.0 1.0 1.0 1.0
1.2 1.3
Exhibit 8: Average slippage ratio ~1% in last five years
Slippage Ratio (%)
0.5
Exhibit 9: Provisioning coverage expected to rise
84
67
49
40
73
68
59
68
PCR (%)
75 73
61
65
61
65 67
72
78
Exhibit 10: Operating efficiencies to drive C/I lower
Cost to Income (%)
70
83
64
47 42
54
92
55 58
70
62 59
54 53 51 51 50
Exhibit 11: Fees to assets at lower end of private banks Exhibit 12: Core income and strong growth to drive ROEs

Non-fun based as a % of total exposure
Fee Income as a % of assets
1.2
0.7
4
0.7
4 7
1.4
1.0
1.5
1.3
RoA (%) RoE (%)
18 16 20 19
10 November 2016 6
RBL Bank
Story in charts
Exhibit 13: Low stress sector exposure for RBL in comparison
to other banks indicative of selective lending
Funded Stressed exposures as a multiple of networth
1.96
1.40 1.36 1.29
Exhibit 14: High CA:SA – focus on transaction accounts; to
leverage relationships for savings account
420
320
ICICIB
YES
HDFCB
KMB
AXSB
1.11
220
0.90 0.90
0.60
120
20
100 150
RBL
IIB
200 250
CA/Branch (INRm)
Stressed sectors include Iron & Steel, Construction, Textiles, Cement
and Infrastructure (including Power)
Source: MOSL, Company **
Size of the bubble denotes the ratio of CA balances to SA balances
Exhibit 15: Low cash intensity among RBL’s clients – function
of initial phase of strong growth
5,507
Exhibit 16: Average inward NEFT ticket size highest for RBL
among peers – impact of e-commerce firms?
278
4,292
69
85 94
112 118
134
155 157
2,941
2,441
3,104 3,115 59 63
ICICIB HDFCB KMB AXSB RBL IIB
Data pertains to the period April’16 to July’16
Source: MOSL, RBI
Source: MOSL, RBI
Exhibit 17: Fee income to assets directly proportional to
non-funded exposure; RBL favorably placed
2.5
Exhibit 18: With 40%+ expected EPS
attractively valued at 2.5x FY19E BV
3.8
CAGR, RBL is

IIB
2.0
1.5
1.0
0.5
5 15 25 35
Non funded/total exposure (%)
Size of the bubble denotes FY16 net worth
HDFCB
FB DCB
AXSB
YES
3.1
2.3
AXSB
HDFCB IIB
RBL
YES
DCB
FB
25%
FY16-19E EPS CAGR
35%
RBL
ICICIB 1.6
0.8
5%
ICICIB
15% 45%
Size of the bubble denotes market capitalization
**: (1) Data obtained from latest quarterly disclosures (2) In cases where iron & steel figure not given, exposure assumed to be 75% of total metal exposure
10 November 2016 7
RBL Bank
Pedigreed leadership; pristine governance
Governance transformation precursor to business transformation


With the hiring of a pedigreed leadership team in 2010, RBL undertook a massive
makeover exercise, encompassing: (a) governance transformation (a highly
independent and professional board), (b) revamped risk management framework and
(c) a new “fresh start” brand identity.
Top management is adequately incentivized with outstanding ESOPs at 9.4% of the
capital base, and ~67% of its employees are covered under the ESOP plan.
After suffering from a decade-long phase of muted loan growth, a cooperative
banking mindset, directed lending and erratic asset quality performance, RBL (in its
earlier avatar as Ratnakar Bank Limited) embarked on a massive transformation
exercise in 2010. Central to this governance transformation exercise was the
induction of a professional and independent Board of Directors.
Anatomy of governance transformation at RBL
Source: Company, MOSL
This was followed by other integral elements that were gradually put in place by
FY12, including the induction of a pedigreed leadership team, strengthening of risk

(regulatory) capital, and a complete overhaul of the risk management framework.
10 November 2016 8
RBL Bank
Governance transformation at play – key elements
 Revised risk
management
architecture
 Experienced middle
management
Human
Capital
Regulatory
Capital
 Strengthened
risk capital
 Marquee
investors
 High-growth
engines
 Uncontested
niche "blue
oceans"
Business
Focus
Pedigreed leadership team
Aggressive hiring of quality
talent at senior/middle
management levels
Since 2010, when it embarked on the transformation exercise, RBL has strengthened
its leadership team with the induction of experienced and like-minded individuals
across key roles. Most of RBL’s senior leaders (Exhibit 19) have prior experience with
new generation private banks and foreign banks and share an alma mater.
Challenges and flexibility of building a new bank and strong incentive structure have
been the key reasons for getting the strong talent pool, in our view. Over past few
years, we have seen very low attrition at the senior management level.
10 November 2016 9

RBL Bank
Exhibit 19: Pedigreed leadership team driving turnaround at RBL
Name
Mr. Vishwavir Ahuja,
56
Mr. Rajeev Ahuja*,
52
Mr. Brijesh Mehra,
52
Mr. Andrew Gracias,
43
Mr. Sandeep
Thapliyal**, 46
Current role
Managing Director & CEO
Additional Director- Executive &
Head- Strategy, Retail,
Transaction Banking
and Financial Inclusion
Head - Corporate and
Institutional Banking and
Transaction Banking
Head - Financial Markets
Appointment Pedigree/
at RBL Prior positions
Qualification
PGDM (IIM-A)
 MD and Country Executive Officer
June 2010 of Bank of America for the Indian 
sub-continent
June 2010
 Citibank India, Bank of America,
India
 PGDM (IIM-A)
 Royal Bank of Scotland N.V. and
June 2016
June 2012
Grindlays Bank Public Limited
Company
 PGDM (IIM-A)
 B.COM (Mumbai
University), C.A.
 Bank of America and UBS
 Citibank’s commercial banking
division, MD of investment
banking in Religare Capital
Market Limited
Head - Commercial Banking April 2013  PGDM (MDI Gurgaon)
 B.Tech (Civil Engineering),
Mr. Manoj Rawat, 46 Head - Agri Business July 2012  NABARD, Fullerton India MEng., degree in business
administration
 B.COM (Mumbai
Mr. Naresh Karia, 41 Chief Financial Officer
November
2010
 BFSI Director in Citigroup,
International Bestfoods Limited
Mr. R. Gurumurthy,
53
Ms. Shanta Vallury,
49
Mr. Bhavtaran Singh
Uberai, 58
Head - Risk & Governance
Head - Human resources,
Chief of Staff and Head- Change
Management and Service
Delivery
July 2011
September
2010
June 2014
 Standard Chartered Bank, Bank of
America, Credit Lyonnais and SBI

 VP (Acquisitions and
Partnerships) at American Express
Bank Limited

University), associate
member of the ICAI and
the ICSI
B.COM (Delhi University),
certified associate of the
Indian Institute of Bankers
M.A (Economics) (Mumbai
University), MMM from
JBIMS
Delhi, CA
 ABN Amro Bank and Arete
Financial Partners, Singapore
 B.COM from SRCC, New
*Nominated for Additional Director; ** Resigned from RBL to join Avendus Capital just prior to the IPO
Source: Company, MOSL Research
Exhibit 20: Changing profile of employees at RBL – contributing to elevated cost structure
Only ~15% of employees
are linked to IBA structure
now
Officers
100%
75%
50%
25%
0%
34% 36% 40% 35%
52%
71%
82% 89% 92%
Clerks Sub-Staff
Source: RBI, MOSL
10 November 2016 10
RBL Bank

Lucrative ESOP scheme
offered by RBL to attract
pedigreed leadership
We believe that the incentive package offered to RBL’s leadership is
comparable/better than other new-generation private sector banks. Also, the bank
was able to hire a high-quality senior leadership team due to its attractive ESOP
incentive scheme relative to peers. More than two-thirds of the employee force is
linked to the ESOP scheme. The bank has outstanding ESOPs (~9% of equity base),
which are yet to be vested.
Exhibit 21: RBL's ESOP scheme (mn)
FY14
No. of Options as at beginning of Fiscal
Options granted
Total options vested (includes options exercised)
Options exercised
Total number of Equity Shares arising as a result of full
exercise of options already granted
Options forfeited/ lapsed/ cancelled
Money realised by exercise of options (INR)
Options outstanding (in force)
15.4
10.5
5.8
3.6
3.6
1.0
159
21.4
FY15
21.4
18.1
6.5
11.3
11.3
2.1
524
26.1
FY16
26.1
16.4
10.0
6.3
6.3
2.5
375
33.8
Apr 1 to Aug 20,
2016
33.8
9.6
5.6
8.1
8.1
1.3
678
34.0
Exhibit 22: ESOPs as % of total shares
Esops o/s (m)
Total sh o/s (m)
Esops as a % of total shares
FB
76
1719
4.43
DCB
9
284
3.06
HDFCB
129
2528
5.09
ICICIB
223
5815
3.84
AXSB
36
2383
1.49
YES
19
421
4.60
IIB
16
595
2.66
RBL
34
362
9.14
We believe a close-knit, like-minded senior leadership team is crucial to RBL’s long-
term growth prospects, especially at the “early growth” stage, when the bank is in
the process of building the foundations and architecture for sustainable, high-
quality growth.
Separation of RM function
and prudent lending
strategy key to RBL’s
success
Revamped risk management framework
RBL’s risk management function has undergone significant changes since FY11. RBL
has made significant investments in technology, processes and human capital during
the revamp (evident from high C/I ratio during FY11-16). However, we believe that
these investments have created long-term value for RBL in terms of its governance
structure, which has a direct positive impact on asset quality and thus shareholder
value. The revamped risk management architecture includes the following key
elements:
10 November 2016 11
RBL Bank
Key elements of risk management architecture

Changes in risk management practices reflected in pristine asset quality
At a time when most other corporate-focused banks are hemorrhaging from
stressed loan accretion, RBL has achieved an impressive combination of exponential
growth and balance sheet strength. Delinquencies (as % of gross loans) have
reduced drastically, lending credit to RBL’s risk management framework.
10 November 2016 12
RBL Bank
Exhibit 23: GNPLs have reduced drastically post FY10
Despite exponential growth
in loans (60%+) over past
five years, RBL has
consistently maintained
healthy asset quality (GNPA
<1% of gross loans)
10.31
7.59
6.81
6.01
2.12 2.33
Gross NPA (%)
1.12 0.80 0.40 0.79 0.77 0.98 1.10
Exhibit 24: FY14-16 average slippage ratio (%)

Average slippage ratio for
RBL is one of the lowest in
the system
1.42
0.92 0.96
1.69 1.71
2.80
2.27
1.92
YES RBL IIB HDFCB AXSB DCB FB ICICIB
Pristine asset quality can be
attributed to its prudent
client acquisition strategy
and selective lending
In our view, RBL has managed to maintain its asset quality in the current uncertain
environment due to its a) selective lending, b) avoiding lending to high stress sectors
like iron & steel and infrastructure, c) focus on working capital and short-term loans,
d) early warning systems and periodic review, e) rigorous monitoring, f) assessment
of risk at customer, product, enterprise, geography and inter-bank levels and g)
separate risk management teams for each product and business segment.
Segregation of wholesale and retail segments: RBL has put in place separate
credit origination, appraisal and monitoring processes for its corporate (wholesale)
and retail segments.
 Wholesale: RBL’s underwriting standards for various client segments are based
on internal risk ratings, security structure and other risk parameters. The bank
has set up an internal credit rating system, based on a two-dimensional
framework around borrower and facility ratings. RBL insists on a mandatory
external rating for all facilities above INR50m.
 Retail: The retail segment relies on standardized product programs for credit
risk assessment and approvals. Due to the granularity of exposures, consumer
finance credit risk is managed on a portfolio basis across various products and
customer segments. This is similar to the risk management practice adopted by
other blue-chip retail lenders like HDFC Bank.
10 November 2016 13
RBL Bank
On the highway to accelerated earnings growth
Market share of just 30bp – to increase to 50bp by FY19



Loan book composition
(FY16, %)
DB&FI, 15
C&IB,
39
Having initially focused on overhauling risk management architecture (toward high
quality) and identifying its niche growth engines, RBL is now poised to accelerate its
loan growth.
We expect RBL’s loan market share to increase from 28bp to 50bp over next three
years, with loan CAGR of ~35%+ compared to system average of +12-13%.
We expect Branch and Business Banking (BBB), Development Banking & Financial
Inclusion (DB&FI) and Agri Banking (AB) to be the key drivers of growth. Their share in
overall business now stands at ~40%.
AB, 8
RBL’s business segments comprise of: Corporate and Institutional Banking (C&IB),
Commercial Banking (CB), Branch Business Banking (BBB), Agribusiness Banking and
Development Banking & Financial Inclusion. The bank acquired Royal Bank of
Scotland’s (RBS) business banking, credit cards businesses and mortgage portfolio in
India in FY14. The share of corporate lending (including commercial banking) in
overall book stands at ~60%.
BBB,
17
CB, 21

Diversified and differentiated positioning
Early-stage acquisition of
high-growth businesses
RBL has adopted a differentiated approach of building a diversified loan book using
a sensible positioning strategy. RBL’s corporate (including commercial banking)
lending (60% of the loan book) segmentation strategy is similar to other banks
(segmented on turnover). However, in case of other segments, the bank has
adopted different business models based on tie-ups and partnerships.
Given that large corporate lending is subject to intense competition and thin
spreads, we believe growth in this segment for RBL should gradually decelerate. In
case of SME/MSME business, growth rates may be modest in the near term,
considering recent asset quality hiccups faced by the bank in the segment.
10 November 2016 14
RBL Bank
Exhibit 25: Client segmentation strategy
Companies with annual turnover
>INR15b/gross block > INR7.5b
between INR2.5b-15b
between INR350m-2.5b
Companies with annual
turnover < INR350m
Mid-sized
corporates
C&IB
CB
SMEs
BBB
Building blocks for growth;
Focus on becoming the
banker of choice to early-
stage emerging businesses
We believe that RBL has the requisite capabilities to manage a portfolio of early-
growth mid-sized corporates (start-ups), especially in emerging high-growth
businesses (e-commerce, logistics, etc.). RBL should benefit not only in terms of
better pricing power but also in terms of its wallet share as some of these small
businesses mature over the medium term.
While most banks consider the agriculture segment as an obligation (PSL targets),
RBL has a differentiated approach to create sustainable profit pools in this segment.
We believe RBL’s differentiated agri-business model – built around identifying gaps
Focus on agri banking
opportunities

in supply chain linkages – is a genuine competitive moat. By FY21, we believe RBL
will build a sizeable market share in its targeted segments.
10 November 2016 15
RBL Bank
Corporate and Institutional Banking
(FY16, %)
DB&FI,
15
AB, 8
Penetrating large corporates to boost fees and transaction floats
C&IB business, accounting for ~39% of loan book, has been one of the key growth
drivers for RBL. While spreads in this business are thin (due to strong competitive
intensity), RBL treats the acquisition of such large corporate accounts as a means
to: a) generate retail (employees of large corporates) and SME (vendors and
contractors) leads, b) focus on asset light fees and c) transaction float, which is
driving CA growth. As other businesses gain traction, we expect the share of C&IB
business in overall loans to decline gradually.
The C&IB segment targets large companies, which are defined either on the basis of
annual turnover (> INR15b) or gross block (>INR7.5b). The business is carried out
from eight major commercial hubs in India: Mumbai, Delhi, Chennai, Bengaluru,
Kolkata, Ahmedabad, Pune and Hyderabad. RBL has carved out a few specialized
sub-segments within C&IB:
 Financial Institutions & Government Undertakings Group (FIGU): This
segment deals with public sector undertakings, government boards and
departments, and financial institutions.
 Corporate Finance: This division handles advisory for capital raising and M&A.
C&IB loans grew at a CAGR of 44% over FY13-16 and accounted for 39% of the loan
book as at March 31, 2016. Given that RBL has very little pricing power in such
accounts, we expect the contribution from this business to gradually reduce over
next 2-3 years.
Exhibit 26: C&IB loan book - ~40% of overall loans
C&IB,
39
BBB,
17
CB, 21
C&IB segment has
witnessed strong 44% CAGR
over FY13-16
AUM (INRb) Y-o-Y growth
56%
46%
30%

28
FY13
36
FY14
52
FY15
82
FY16
Penetrating large business
accounts and tapping their
ecosystem to generate
retail and SME leads
As majority of the public sector banks (PSBs) continue to be distracted by their own
credit challenges, RBL (like other private sector banks) has made inroads into the
highly rated large corporate accounts. It is also interesting to note that RBL treats
the acquisition of such large corporate accounts as a mean to generate retail
(employees of large corporates) and SME (vendors and contractors) leads. We
believe this is symptomatic of how any sensible, mid-sized bank needs to operate –
such banks tend to have limited bargaining power with large corporates, and hence
10 November 2016 16
RBL Bank
it is important to leverage such relationships and gain a foothold in other
commercially viable segments.
Client acquisition strategy
skewed toward
transactional businesses;
high stress sectors avoided
RBL has positioned itself as a working capital-oriented bank focused on transactional
businesses for its C&IB clients. It has been selective in lending to large corporates
and is strongly focused on the quality of business originated from such clients. The
bank has avoided exposure to stressed sectors (as defined by the RBI in its most
recent Financial Stability Report), such as iron & steel and infrastructure, and does
not offer long-term project finance.
Exhibit 27: Exposure to stressed sectors (multiple of FY16 networth)
1.96
1.40
Selective lending reflected
in RBL’s low exposure to
stressed sectors relative to
peers
1.36
1.29
1.11
0.90 0.90
0.60
Stressed sectors: Iron & Steel, Construction, Textiles, Cement and Infrastructure (including Power)
Transaction accounts and
large non-funded exposure
leading to high fee income
to assets proportion
RBL has a rising mix of non-funded exposure (~19% of total exposure to C&IB
segment), with resultant implications on fee income. Given its small balance sheet
size, we believe non-funded exposure is a transient entry strategy into large
corporate accounts.
Exhibit 28: Rising mix of non-funded exposure
Non-fun based as a % of total exposure Fee Income as a % of assets
1.5
1.2
0.7
4
FY10
0.7
4
FY11
7
FY12
1.4
1.0
1.3
18
FY13
16
FY14
20
FY15
19
FY16

Long-term growth levers in
place
Given its (a) focus on quality revenue stream (fee income), (b) selective client
acquisition strategy and (c) clean balance sheet (pristine asset quality), we believe
RBL is well positioned to extract market share gains over next five years.
10 November 2016 17
RBL Bank
Commercial Banking (CB)
(FY16, %)
DB&FI, 15
C&IB,
39
Focus to become primary banker early in life cycle of the customer
Commercial Banking (CB) business focuses on the emerging and fast-growing
companies, SMEs and MSMEs. Due to a limited lender base, competitive intensity
is relatively less (implying better pricing power), which provides RBL an
opportunity to become a primary banker in such accounts. Lending to
SMEs/MSMEs is one the oldest businesses of the bank. RBL’s focus is on getting
transition banking business, generating leads in the supply chain and boosting CA
floats.
The CB segment operates just below the C&IB funnel in the customer pyramid and
caters to SMEs (companies with annual revenue between INR350m and INR2.5b)
and mid-sized companies (annual revenue between INR2.5b and INR15b). The CB
portfolio grew at a 31% CAGR between FY13 and FY16, accounting for 21% of the
bank’s loan book as at March 31, 2016.
Exhibit 29: Commercial banking AUM
AB, 8
BBB,
17
CB, 21
35%
28%
31%
20
FY13
27
FY14
34
FY15
45
FY16
Focus on emerging and fast-
growing companies, SMEs
and MSMEs can offer an
early-mover advantage
The CB clientele primarily comprises a) emerging and fast-growing companies from
relatively “new-economy” industry segments such as logistics, e-commerce,
consumer services and organized retail and b) SMEs and MSMEs. Although such
corporates are small in size, they predominantly operate in high-growth segments
and thus offer strong growth potential for bankers. We believe RBL can get an early-
mover advantage in such niche blue oceans.
Given that such accounts are relatively small as of now (although important from
RBL’s size perspective), they offer an opportunity to RBL to position itself as the
primary banker in such accounts. It also provides strong pricing power to the bank.
Further exposures are largely collateral based, which provides comfort on asset
quality. RBL targets a toehold in the supply chain (ecosystem), non-fund business
and transactions (payments and collections) business, largely looking for current
account business.
Targeting entire supply
chain, non-fund business
and generating CA floats

10 November 2016 18
RBL Bank
Branch and Business Banking (BBB)
Making inroads with both organic and inorganic strategies
(FY16, %)
CB,
21
BBB,
17
AB, 8
Branch and Business Banking (BBB) focuses on SMEs, MSMEs and retail business of
the bank. The acquisition of the RBS portfolio provided the bank with access to a
strong customer base and helped expedite growth in the credit card, mortgage
and business banking segments. On the liability side, this segment focuses on
niche areas like trusts, societies, clubs, NRIs and HNIs. This business accounts for
17% of loan book, and is expected to be the biggest growth driver for the bank in
coming years.
The Branch and Business Banking (BBB) segment, established in 2015, combines
RBL’s erstwhile retail branch banking business and business banking segments. BBB
caters to individual and business accounts via both traditional branches and digital
channels. The BBB portfolio grew at a 74% CAGR over FY13–16 to INR36b (17% of
loan book) as at March 31, 2016.
RBL’s business accounts focus on SME and MSME clients with high-volume
transaction banking requirements (in turn working capital) and contribute
significantly to its relatively strong current account franchise. In urban locations, RBL
is focused on credit cards, small enterprise loans and personal loans to salaried
individuals. RBL also originates home loans for HDFC, India’s largest housing finance
company.
Exhibit 30: BBB loan book
36
137%
16
7
45%
FY14 FY15
54%
FY16
24
C&IB,
39
DB&F
I, 15
FY13
RBS portfolio acquisition
helped expedite growth in
credit card, mortgage and
business banking
RBL is also actively looking for opportunities to acquire portfolios that complement
its existing customer profile. The BBB franchise has benefited from the bank’s
acquisition of RBS’ India-specific business banking, credit cards and mortgage
portfolios in FY14. The acquisition enabled RBL to expand its
operations/geographical presence, launch new products (credit cards) and add an
attractive customer segment to its existing service proposition. Most importantly,
the acquisition helped to inherit a highly experienced team of RBS employees with
domain expertise in business banking, which has considerably reduced RBL’s time-
to-market in this segment. The portfolio acquisition from RBS added assets of INR3b
and liabilities of INR11b (largely CASA) to the bank’s balance sheet.
19
10 November 2016

RBL Bank
Exhibit 31: Focus on high-quality credit card customers – partially helped by RBS portfolio
FY16 Average Credit card Spend - POS
4,292
5,507
2,941
2,441
3,104 3,115
ICICIB HDFCB KMB AXSB RBL IIB
Source: MOSL, RBI
CA balances driven by
strong SME and MSME
business
RBL’s liability franchise is also unique, in terms of a higher CA ratio (compared to the
SA ratio), which implies a higher proportion of balances that earn zero interest. We
believe this is indicative of a significant catchment of frequently transacting clients
(traders and businesses), as well as unique client segments such as hospitals,
educational institutions, cooperative banks, embassies and trusts. Also, this is a
result of early part of the lifecycle of any private bank.
Exhibit 32: Highest proportion of zero-cost liabilities (CA deposits) - SME/MSME clients
420
320
220
120
20
100 120 140 160 180
CA/Branch (INRm)
200 220 240
ICICIB
YES
IIB
KMB
HDFCB
AXSB
RBL
Size of the bubble represents the proportion of CA deposits to SA deposits
RBL’s SA is significantly ahead of where IIB and YES were at a similar stage of
maturity. Higher savings rates and a focus on bulk SA from trusts, clubs, societies,
HNIs and NRIs are leading to high SA per branch. As cross selling and penetration
increases, we expect granularity of SA to go up. In Exhibit 36, we compare RBL’s
liability franchise with those of IIB and YES when they were at 200 branches.
Exhibit 33: Comparison of liability franchise @200 branches - RBL has a better SA franchise
Milestone comparison
CA/branch
SA/branch
IIB (FY09)
164
72
YES (FY11)
216
45
RBL (FY16)
146
93
Various strategies at play to
acquire retail customer
base
Post a steep learning curve between FY12 and FY14, RBL has consciously segmented
its retail customers for specific products. Key drivers to this client acquisition
strategy are growing presence in strategic economic centers (NH4 and NH8),
increasing use of technology, introduction of multiple new products and greater
cross-sell.
20
10 November 2016
RBL Bank
Development Banking and Financial Inclusion (DB&FI)
1/6 th
of loan book – growing at a rapid pace
Apart from direct rural lending, RBL lends to financial intermediaries such as MFIs,

(FY16, %)
BBB,
17
AB, 8 DB&
FI, 15
CB,
21
C&IB,
39
HFCs involved in affordable housing finance and NBFCs engaged in lending to
MSMEs. It has entered into partnerships with business correspondents (BCs),
acquired stakes in MFIs/SFBs and tied up with brands like BookMyShow, Yum food
chain and e-commerce companies to grow this business. Such partnerships /tie-
ups help the bank to extend its reach beyond a traditional branch network. Apart
from high-yielding loans, the focus under this segment is on cross-sell (payment
products) and savings deposits.
RBL has extended its reach in the unbanked and under-banked areas via business
correspondents and digital channels. While distribution is handled by business
correspondents, technology infrastructure, risk management and governance are
handled by the bank. This has enabled RBL to operate a profitable business model
and keep costs under check.
Under this segment, RBL has adopted a multi-product strategy, whereby it cross-
sells remittances, savings deposits and insurance products in addition to loan
products. As of March 31, 2016, the bank had nearly 1.3m DB&FI customers.
Exhibit 34: DB&FI loan book
Portfolio CAGR of 63%;
accounts for 15% of loan
book
82%
58%
51%
31
FY16
7
FY13
13
FY14
21
FY15
In our view, RBL has built a differentiated business proposition for low-income
consumers. While most MFIs and banks are primarily ‘lenders’ in this space, RBL is
creating long-term sustainable relationships with its clients. Its recent partnerships
in this business show its commitment toward the same.
 RBL acquired a 30% stake in Swadhaar Finserve Private Limited (SFPL) for a
consideration of INR205m. SFPL is a business correspondent that targets under-
served segments of businesses, households and enterprises.
 Recently, it acquired a 10% stake in Utkarsh Micro Finance Private Limited
(UMFI), a microfinance institution (MFI) with a small finance bank (SFB) license.
UMFI has an outstanding group lending (GL) portfolio of INR15b and other loans
(micro enterprises and housing loans) of INR1b.
10 November 2016 21
RBL Bank
(FY16, %)
BBB,
17
CB,
21
Agribusiness Banking (AB)
Focus on building gaps in agriculture supply chain
AB,
8
DB&
FI, 15
C&IB,
39
Agribusiness banking focuses on the entire agriculture supply chain. Its strategy is
aimed at improving the income potential at each stage and minimizing the
probability of default across the value chain. With various checks in place, RBL
ensures that the loan amount does not surpass the borrower’s repayment and
servicing capacity. The focus on AB and D&IB business has helped the bank to
meet/surpass PSL targets easily and profitably.
In a classic “obligation v/s opportunity” scenario, while other banks are focused on

agri-lending to meet their regulatory obligations (priority sector lending targets),
RBL’s entry strategy is built around funding the gaps in the agricultural supply chain.
Its strategy is aimed at improving the income potential at each stage, minimizing the
probability of default across the value chain. RBL also provides farmers with
warehousing facilities for crops to help them maximize the value of their harvest
during the off season.
RBL’s unique linkages-based approach, deep understanding of the agriculture value
chain and prudent lending norms give it a competitive advantage. AB portfolio CAGR
was 102% between FY13 and FY16, and stood at INR18b (8% of loans) as of FY16.
Exhibit 35: AB loan book
AUM (INRb)
195%
Y-o-Y growth
13
114%
31%
FY14 FY15 FY16
18
Differentiated entry
strategy – focus on building
gaps in agri supply chain
6
2
FY13
Responsible lending –
Agriculture NPA at just
64bp
RBL considers three key parameters before lending to an agricultural borrower –
CIBIL, High Mark and 7/12. It limits its exposure to 50% of the farmer’s annual
income (taking into account productivity, average selling prices and harvesting
season). With these checks in place, RBL ensures that the loan amount does not
surpass the borrower’s repayment and servicing capacity. RBL’s agri-NPA of just
0.6% is the best in the system.
The average agricultural borrower usually exhibits low price elasticity, and hence,
does not often shop for lower interest rates. The proof of the pudding is evident in
the fact that the average stickiness of a bank’s agricultural customer is about 7
years. This is consistent with our understanding that the bank has managed to
identify the gaps in this segment.
22
Low price elasticity, high
stickiness of agricultural
borrower
10 November 2016
RBL Bank
Poised for operating leverage benefits
“Capacity building” phase behind; scale economies to kick in



RBL’s business transformation has coincided with significant investments in human
capital (senior management), service offering (product suite), customer acquisition
(including inorganic portfolios), technology and brand building (branch expansion and
re-branding). Cost CAGR over FY11-16 stood at ~50%.
All these capacity-building measures have reflected in C/I ratio, which rocketed by
~17% during the investment phase (59% in FY16).
With significant capacity already in place, RBL is now primed to sweat its investments
and benefit from operating leverage levers. We expect C/I ratio to average ~51% by
FY19.
Apart from business transformation, RBL had to invest aggressively in brand
building, attracting talent from large banks and branch expansion. Earlier, RBL was
predominately a regional bank (largely in Maharashtra and Karnataka); however, its
new management is focusing on making RBL a pan-India bank (initial focus is on NH4
and NH8, i.e., Mumbai-Delhi and Mumbai-Chennai corridor). Now, less than 15% of

its employees are linked to the IBA pay structure. This, along with RBS portfolio
acquisition cost (accounted upfront), has impacted its cost ratios.
Exhibit 36: Geographical distribution of branch network (%)
Diversifying geographical
presence
20
37
20
23
FY13
Metro
24
36
17
22
FY14
Urban Semi-urban
25
35
17
23
FY15
Rural
23
32
16
29
FY16
We believe RBL’s cost structure is less favorable than its peers, largely on account of
the “capacity building” phase that the bank has undergone over past few years in
terms of physical infrastructure and human capital. Over FY10-16, while the number
of employees grew at a CAGR of 33%, the number of branches grew at 14%. More
importantly, the identity transformation (from old private sector bank to a new-gen
bank) is also reflected in the evolving mix and profile of its employees. All these
have elevated the cost structure further.
10 November 2016 23
RBL Bank
Exhibit 37: Capacity building – distribution network and human capital
Branch expansion has been
measured; Focus on digital
and feet-on-street model;
Employees per branch going
up at rapid pace
Branches Employees per branch
1328
545
7.3
75
7.0
78
6.9
80
544
6.7
81
6.5
87
704
7.8
90
9.1
12.3
16.3
18.9
3872
19.7
15.0
100 108 124 172 183 197
indicates total number of employees
Exhibit 38: Changing profile of employees at RBL contributing to elevated cost structure
IBA-linked employee force
has come down to 15%
Officers
19%
47%
19%
45%
19%
41%
20%
45%
Clerks
15%
33%
71%
82%
89% 92%
Sub-Staff
10%
19%
6%
12%
4%
7%
3%
5%
34% 36% 40% 35%
52%

Incremental cost per
employee is also likely to
come down, as large part of
recruitment is likely to
happen at lower levels
Exhibit 39: Sharp rise in cost per employee over FY11-16
Avreage cost per employee (INRm)
83.0
63.7
46.7 42.1
53.6
92.0
55.1
58.4
70.3
62.5 58.6
C/I ratio (%)
0.3 0.4 0.3 0.4 0.4 0.9 0.8 0.8 0.8 1.0 1.0
Exhibit 40: Average employee costs amongst the highest for RBL
Employee cost/asset
Other expenses/assets
Opex/assets
RBL
1.12
1.20
2.32
FB
1.21
0.93
2.14
DCB
1.39
1.39
2.79
HDFCB
0.88
1.74
2.61
ICICIB
0.73
1.12
1.86
AXSB
0.68
1.36
2.05
YES
0.86
1.11
1.97
IIB
0.98
1.93
2.92
10 November 2016 24
RBL Bank
Exhibit 41: Elevated cost structure driving low return ratios for RBL
23.0
18.0
13.0
8.0
3.0
0.2 0.7 1.2
ROA (%)
1.7 2.2
FB
YES
HDFCB
IIB
RBL DCB
AXSB
ICICIB
Size of the bubble denotes CET1 % Source: MOSL, Company
Considering the strong expansion, capacity is under-utilized and productivity levels
are low compared to peers. With new products, employees willing to adapt to new
technologies, leverage on existing relationships and ageing branch network, we
expect productivity levels to improve. Further, incremental cost of expansion is
likely to be lower. Overall, we expect cost/core income ratio to moderate to ~53%
during FY16-19E (from 61% in FY16).
Exhibit 42: Cost to income to decline to 51% from 59% currently
Productivity improvement
to drive cost to income ratio
lower
92
58
Cost to Income (%)
70
62 59
54 55 54 53 51
Exhibit 43: Cost to assets to remain elevated in the high growth phase
Continued expansion to
keep cost to average assets
elevated
2.6 2.5
3.0
2.3 2.1 2.0
Cost to average assets (%)
3.9
2.7
2.2
2.7 2.6
2.3 2.4 2.5 2.5 2.5 2.4

Exhibit 44: Employee productivity to rise hereon
Business per employee (INR m) Profit per employee (INR m)
1.3
1.7
1.8
2.0
0.3
-0.2
21 24 25 28 34
0.3
38 42
0.6
57
0.6
74
0.4
78
0.7
85
0.8
1.0
105 127 155 192 218 238
10 November 2016 25
RBL Bank
Financial performance
Core income improvement to drive RoA acceleration





We expect core income (as % of assets) to improve ~90bp over next three years, led by
a) margin improvement of +60bp and b) rising share of fee income.
While ageing of branches will drive operating efficiency, continued expansion will
keep cost to assets at ~2.5%.
We expect asset quality to remain stable; however, on a prudent basis, we factor in a
10bp rise in credit cost to 0.55%.
Higher share of core income should drive RoA improvement of ~40bp to 1.3%, and
strong growth (in turn higher leverage) is likely to increase RoE by 670bp to ~18%.
Considering the strong growth and investment phase, current capitalization may not
be sufficient for more than two years. Hence, another round of capital infusion is
possible in FY19, which, however, is not factored in our estimates. Overall, we expect
PAT CAGR of ~45% over next three years, one of the highest in our coverage universe.
Exhibit 45: Core income to drive RoA improvement
Y/E MARCH
Net Interest Income
Fee income
Fee to core Income
Core Income
Operating Expenses
Cost to Core Income
Employee cost
Employee to total exp
Others
Core Operating Profit
Trading and others
Operating Profit
Provisions
NPA
Others
PBT
Tax
Tax Rate
RoA
Leverage (x)
RoE
FY10
3.11
0.65
17.4
3.76
2.04
54.3
1.21
59.1
0.83
1.72
0.04
1.76
0.26
0.00
0.26
1.51
0.50
33.1
1.01
5.5
5.51
FY11
3.58
0.71
16.6
4.29
3.94
91.7
2.72
69.2
1.21
0.36
-0.01
0.34
0.01
0.05
-0.03
0.33
0.12
36.1
0.21
3.7
0.78
FY12
3.58
1.20
25.2
4.78
2.68
56.1
1.61
60.1
1.07
2.10
0.08
2.18
0.36
0.36
0.00
1.82
0.58
31.7
1.25
4.7
5.84
FY13
2.55
0.98
27.8
3.54
2.22
62.9
1.23
55.3
0.99
1.31
0.27
1.58
0.22
0.22
0.00
1.36
0.44
32.2
0.92
7.3
6.75
FY14
2.19
1.40
39.0
3.60
2.72
75.6
1.19
43.6
1.53
0.88
0.27
1.15
0.30
0.29
0.01
0.85
0.26
30.1
0.59
8.6
5.12
FY15
2.46
1.53
38.3
3.98
2.65
66.5
1.33
50.2
1.32
1.33
0.25
1.59
0.27
0.26
0.00
1.32
0.41
30.9
0.91
10.7
9.76
FY16
2.47
1.30
34.5
3.77
2.32
61.4
1.12
48.2
1.20
1.46
0.18
1.64
0.35
0.31
0.03
1.29
0.41
31.7
0.88
12.7
11.21
FY17E
2.87
1.39
32.6
4.26
2.40
56.4
1.10
46.0
1.30
1.86
0.21
2.06
0.51
0.44
0.07
1.56
0.52
33.5
1.03
12.2
12.65
FY18E FY19E
2.97 3.09
1.53 1.57
34.0 33.7
4.50 4.66
2.53 2.49
56.2 53.3
1.14 1.10
45.1 44.1
1.39 1.39
1.97 2.17
0.25 0.18
2.22 2.35
0.43 0.45
0.43 0.45
0.00 0.00
1.79 1.90
0.60 0.64
33.5 33.5
1.19 1.26
12.5 14.2
14.85 17.89

10 November 2016 26
RBL Bank
Margins set to expand ~60bp over next three years
Improving balance sheet
mix, rebalancing of loan
portfolio and better retail
deposits are the key
enablers
NIM (calculated) at 2.65% is at the lower end of the private sector banks’ range,
which can be attributed to: a) an investment-heavy balance sheet (investments as a
proportion of total asset book at ~37%), b) low CASA ratio relative to peers and c)
high share of low-yielding corporate loans. Management is aggressively investing
toward building a brand, creating infrastructure and utilizing savings deregulations
to build its savings deposits base. Hence, benefits of some of these initiatives will be
reflected in cost of funds.
Key levers for the margin improvement are: a) expected improvement in CASA ratio
by ~400bp, b) asset reallocation from low-yielding investments to loans, c) rising
share of loans from high-yielding segments and d) benefit of capital-raising
exercises. The share of wholesale liabilities in the balance sheet remains high, which
will be beneficial in the near term given high liquidity and falling interest rate
scenario.
Exhibit 46: Declining cost of funds to drive improvement in
spreads (+60bps over FY16-19)
Average Yield on funds
Average cost of Interest bearing liabilities
9.6
8.4
7.8
7.0
5.2
7.3 7.6
7.1
9.3 9.4 9.4
8.9 9.3 9.1 9.1
Exhibit 47: Balance sheet rationalization to drive ~60bp NIM
improvement through FY19
Calculated NIMs
3.44
3.93 3.85
2.71 2.68 2.65
3.27
3.05 3.15
2.37
5.9
6.5 6.6 6.3 6.1
RBL has grown its loan book at a CAGR of 62% over FY11-16. We expect the bank to
continue its growth momentum, factoring in ~37% loan book CAGR over FY16-19E,
driven by traction in the AB, BBB and CB businesses. Considering the already high C-
D ratio of ~87%, we believe deposits will keep pace with loans through FY19.
Exhibit 48: Loan book to grow at 37% CAGR through FY19
Loans (INR b)
37%
62%
98
144
16 20 47
83
116
303
212
171
408
58%
243
551
Exhibit 49: Deposits to keep pace with loan book growth
Deposits (INR b)
38%
337
464
638
12 19 41
64

10 November 2016 27
RBL Bank
RBL’s corporate loans constitute 60% of the total book (75% in FY13). We expect its
loan mix to become more granular over next few years with an increased focus on
the high-yielding branch and business banking and agri banking segments. The
bank’s CASA ratio is significantly lower than peers. This can be attributed to the high
growth phase of the bank over FY11-16, during which its CASA ratio showed a
marked decline. However, with increased savings mobilization (employee/branch),
the CASA mix should trend upward from 18.6% in FY16 to ~22.5% over next three
years.
Liability franchise – CASA ratio to improve 400bp over next three years
We expect SA mobilization efficiency to improve over next three years, driving
average SA balances/branch from ~INR90m in FY16 to ~INR350m in FY19. With RBL
operating at a healthy CA balance of ~INR146m/branch, CA deposits will largely
keep pace with overall deposits. Hence, CASA ratio should improve to ~22.5% in
next three years.
Exhibit 50: CASA ratio to improve ~400bp, driven by traction in SA mobilization
18.6 CASA Ratio SA as a % of deposits
11.4
6.4
36.1 34.5 21.5 19.7 20.4 18.5
7.2
12.7
14.4
18.6 20.8 21.3 22.5
Asset quality to remain healthy; factoring in higher credit cost
Superior risk management,
avoiding high stress sectors
and expertise in agri
segment leading to strong
asset quality
RBL has managed to keep a healthy asset position, with GNPAs at less than 1% in
each of the last five years. The bank has a strong balance sheet due to its superior
risk management and corporate governance framework, despite an environment of
stress in large corporate accounts. We expect slippages to remain below 1.3% and
GNPAs at 1-1.6% over next three years. However, considering strong growth, we
factor in an increase in credit cost to 55bp over next three years from 45bp
currently.
10 November 2016 28

RBL Bank
Exhibit 51: Strong asset quality position to sustain
2.33 Gross NPA (%) Net NPA (%)
1.37
0.48
1.61
0.97 1.12
0.80
0.36
0.20
0.40
0.11
0.79
0.31
0.77
0.27
0.98
0.59
1.08
0.42
0.53
Exhibit 52: Slippages to remain below 1.3%
Credit Costs as a % of average loans
1.38
0.95
0.33
0.99 1.00
0.37
0.48
0.29
0.45
1.00
0.57
Slippage Ratio (%)
1.20
0.55
1.30
0.55
0.23
Fee income contribution to rise
RBL’s fee CAGR over last three years stood at 63%. Factors such as introduction of
wealth management products, liability fees, acquisition of RBS portfolio and pick-up
in forex fees have led to strong fee income growth. Furthermore, RBL’s high
proportion of non-fund-based exposure to the C&IB business and high transacting
customer base in the BBB segment contribute to impressive fee growth. We expect
its fee-to-assets ratio to improve to 1.6% of assets by FY19, led by continued
momentum in existing fee income streams and a sharp pick-up in forex fees.
Exhibit 53: High customer stickiness to drive improvement in fee income to assets
Expect fee income CAGR of
37%+, led by forex and
third-party distribution fees
1.2
0.7 0.7
1.0
Fee Income to assets
1.4
1.5
1.4
1.5 1.6
1.3
10 November 2016 29
RBL Bank
Exhibit 54: Off balance sheet exposure as % of assets
Contingent liability/assets
81.1

66.4
49.0
75.9
4.2 3.3
8.0
Operating efficiencies to drive return ratios
Over FY10-16, RBL has invested significantly in physical (2x branch expansion) and
human infrastructure (5x increase in headcount; high average employee cost of
INR1m). With necessary investments already in place, we factor in ~6%
improvement in cost-to-income ratio over FY16-19, driven by operating leverage
benefits. Rationalized asset side and liability franchise, coupled with operating levers
in play, will enable RBL to increase its return ratios (RoA +40bp, RoE +670bp over
FY16-19).
Exhibit 55: Cost to core income expected to improve ~720bp over FY16-19
Cost to Income (%)
92
54 55 58
70
62 59 54 53 51
Exhibit 56: Operating leverage benefits to drive higher return ratios
RoA (%) RoE (%)
11.2
12.6
14.9
17.9
9.8
5.5
1.0
0.8
0.2
5.8
1.2
6.8
5.1
0.6 0.9
0.9 0.9 1.0 1.2 1.3
10 November 2016 30
RBL Bank
Dilution risk: In our assumptions, we have not considered the impact of future
capital infusions that may be undertaken by RBL. According to our estimates, RBL
will have leverage ratio of 14.2x by FY19, whereas maximum leverage under current
management has been 12.7x. Given the exponential pace of capital consumption,
we believe RBL will need to undertake frequent bouts of capital infusion, which, in
turn, could pose downside risks to our RoE estimates.
Exhibit 57: We expect RBL to have tier 1 capital ~11% in
FY17
56.3
Exhibit 58: Leverage ratio elevated at 12.7% in FY16

Tier 1 CAR Leverage
12.7 12.2 12.5
14.2
34.1
23.1
10.7
17.1 14.6
13.1 12.9 13.1 11.7
10.3
9.8 8.8
7.3
5.5
3.7
4.7
8.6
33.5 55.8 22.8 16.8 14.3 12.7 11.1 11.1
Sensitivity analysis of expected capital raise in FY19 – not yet factored in our
estimate
In the light of its aggressive loan growth targets, the bank will need to fund growth
by diluting equity in FY19. While we have not built capital raising in our estimate we
present below the sensitivity analysis for the same. For our analysis, we assume 10%
dilution at 3xFY19 BV, i.e. raising INR34b. This capital will not only raise the tier-1
ratio to 12%, but also enable the bank to sustain superior loan growth and
continuous market share gains. ROA is expected to be strong and ROE to be 17% by
FY21 given strong growth and margin expansion.
Exhibit 59: Sensitivity analysis of capital infusion in FY19
FY17E
114.4
12.5
1.0
12.6
11.1
FY18E
129.0
18.1
1.2
14.9
9.8
Pre-dilution
FY19E
149.1
24.9
1.3
17.9
8.8
FY20E
175.0
32.1
1.3
19.8
8.1
FY21E
208.8
42.0
1.3
21.9
7.6
FY17E
114.4
12.5
1.0
12.6
11.1
FY18E
129.0
18.1
1.2
14.9
9.8
Post-dilution
FY19E
186.9
23.1
1.3
15.3
12.0
FY20E FY21E
211.6 243.4
30.5 39.4
1.3 1.3
15.3 17.3
10.8 9.7
BV
EPS
RoA
RoE
Tier I
10 November 2016 31
RBL Bank
Exhibit 60: Peer comparison – key operating metrics (FY16)
Parameters
MARGIN METRICS
Average yield on interest earning assets (%)
Average Cost of Interest bearing Liabilities (%)
Spreads (%)
Net interest margin (%)
BRANCH PRODUCTIVITY METRICS
SA/branch (INR m)
CA/branch (INR m)
Business/branch (INR m)
CASA per branch (INR m)
Employees/branch
EMPLOYEE PRODUCTIVITY METRICS
SA/employee (INR m)
CA/employee (INR m)
CASA/employee (INR m)
Average cost/employee (INR m)
Business/employee (INR m)
FB
10.0
6.8
3.2
3.2
171
34
1038
206
9
19
4
23
0.9
114
DCB
10.6
7.2
3.4
3.9
131
67
1447
198
21
6
3
9
0.6
67
HDFCB
10.4
6.0
4.4
4.7
347
207
2141
554
19
18
11
29
0.7
111
ICICIB
8.9
5.2
3.7
3.6
316
139
1889
454
17
19
8
27
0.7
113
AXSB
9.2
5.6
3.6
3.8
385
232
2367
617
17
23
14
37
0.7
141
YES
10.0
6.9
3.1
3.4
274
147
2528
421
17
16
8
24
1.0
146
IIB
10.4
6.7
3.6
4.0
192
172
1801
363
23
8
7
16
0.6
77
RBL
8.9
6.5
2.4
2.7
93
146
2030
239
20
5
8
12
1.0
105

KEY RATIOS
ROA (%) - FY16
ROE (%) - FY16
CET1 (%) - FY16
CASA Ratio (%)
C/I (%) - FY16
Core fee income to assets (%) - FY16
GROWTH RATIOS
deposit CAGR (%) - FY13-16
loan book CAGR (%) - FY13-16
PAT CAGR (%) - FY13-16
ASSET QUALITY RATIOS
GNPA (%) - FY16
NNPA (%) - FY16
Slippage Ratio (%) - Average last 3 years
PCR (%)
0.5
6.0
13.7
32.5
61.2
0.6
10
11
-17
2.87
1.52
2.3
72
1.1
11.8
12.8
23.4
64.6
0.8
21
25
24
1.52
0.75
1.9
78
1.9
18.3
13.2
43.2
47.7
1.2
23
25
22
0.87
0.28
1.7
70
1.2
11.5
12.9
45.8
42.2
1.3
13
14
5
5.95
3.11
2.8
49
1.7
17.1
12.6
47.3
41.5
1.5
12
20
17
1.78
0.74
1.7
72
1.7
19.9
10.3
28.1
42.4
1.6
19
28
25
0.76
0.29
0.9
62
1.8
16.6
14.9
35.2
50.1
2.3
20
26
29
0.87
0.36
1.4
59
0.9
11.2
11.1
18.6
61.4
1.3
43
49
47
0.98
0.59
1.0
56
10 November 2016 32
RBL Bank
Initiating with Buy
Valued at 3x FY19 BV



We value RBL based on the residual income (RI) model and build in 40% EPS CAGR
over FY16-19. At our target price of INR450, the stock would trade at 3x FY19BV and
18x EPS.
We factor in average 18% growth in the explicit period (FY19-36) and a terminal
growth rate of 5%. We factor in cost of equity of 13.6%, with RF of 7.25%, beta of 1.3x
and risk premium of 5.0%.
We believe RBL deserves significant premium compared to its peers, considering its
strong growth, improvement in profitability and pristine asset quality.
Given the 37% loan book CAGR that RBL is likely to demonstrate over FY16-19, we
expect its capital consumption rate to be meaningfully north of its pace of internal
accruals. As a result, we expect frequent doses of equity infusion (possibly once
every 24-30 months) over next few years. Hence, RoE will remain volatile at sub-15%
over the foreseeable future. Our derived RoE estimates beyond FY18 assume RBL’s
CET1 ratio falling below 10%, which may not materialize.
Exhibit 61: RBL deserves a "high-growth" premium
3.8
3.1
HDFCB IIB RBL

2.3
AXSB
1.6
ICICIB
0.8
5% 10% 15% 20% 25% 30%
FY16-19E EPS CAGR
35% 40% 45%
DCB
YES
FB
Size of the bubble represents market capitalization
As can be seen from Exhibit 64, RBL offers the highest three-year EPS CAGR among
its private sector banking peers, nearly 10 percentage points higher than its
illustrious peers such as YES and IIB. We expect RBL to trade at premium valuations
during this high-growth phase, as long as it continues to deliver pristine asset quality
backed by its superior risk management capabilities. We initiate coverage with a Buy
rating and a target price of INR450 (3x FY2019 BV).
10 November 2016 33
RBL Bank
RBL – identifying the closest like-for-like comparable
On most operating metrics, we believe that RBL bears a close similarity to Yes Bank
(circa 2011), with both banks demonstrating similarities around the following
parameters (Exhibit 65):
 Five years into the investment phase of their evolution
 Exponential growth on both sides of the balance sheet
 Strong growth in earnings
 Similarly-sized balance sheets
 Comparable number of employees and branches
Exhibit 62: Key operating metrics - RBL (FY16) v/s YES (FY11)
Operating Metrics
No. of employees (#)
No. of branches (#)
Loans (INR b)
Growth metrics
Loan book (5-year CAGR) (%)
Employee additions (5-year CAGR) (%)
Branch additions (5-year CAGR) (%)
RBL (FY16)
3,872
197
212.3
62
34
15
YES (FY11)
3,929
214
343.6
70
44
66
Source: Companies, MOSL
Where are they similar?
A comparison between RBL’s operating metrics for FY16 and Yes Bank’s operating
metrics for FY11 (Exhibit 66) reveals an uncanny resemblance, especially around
headline metrics on branch as well as employee productivity.
Exhibit 63: Key operating metrics - RBL (FY16) v/s YES (FY11)
Operating Metrics
No. of employees (#)
No. of branches (#)
RBL (FY16)
3,872
197
YES (FY11)
3,929
214

Employees / branch (#)
Branch productivity metrics
SA / branch (INR m)
CA / branch (INR m)
CASA / branch (INR m)
Employee productivity metrics
SA / employee (INR m)
CA / employee (INR m)
CASA / employee (INR m)
Business / employee (INR m)
Average cost / employee (INR m)
19.7
93
146
239
4.8
7.6
12.4
105
1.01
18.4
45
216
261
2.3
11.3
13.6
165
1.00
By FY11, Yes Bank was five years into its investment phase (since 2006) – just like
RBL has been since FY11, with exponential growth in branches and employees. RBL
is wholesale-funded on the liability side as was Yes Bank in 2011.
10 November 2016 34
RBL Bank
Where are they different?
While RBL remains wholesale-funded on the liability side, its asset mix is even more
diversified than that of Yes Bank (circa 2011). RBL enjoys significantly higher
granularity in its loan book (60% corporate loan book), whereas corporate lending
contributed 95% of Yes Bank’s loan book in FY11.
Although headline branch and employee productivity metrics are very similar for Yes
Bank (circa 2011) and RBL, it is worth highlighting that the relative source of
productivity is different in both cases. RBL’s branches are more than twice as
productive as Yes Bank in mobilizing savings deposits, as highlighted in Exhibit 67.
Exhibit 64: Key operating metrics – RBL (FY16) v/s YES (FY11)
Operating Metrics
Loan book composition (Corporate) (%)
Branch productivity metrics
SA / branch (INR m)
CA / branch (INR m)
CASA / branch (INR m)
Employee productivity metrics
SA / employee (INR m)
CA / employee (INR m)
Business / employee (INR m)
Return ratios
5-year average ROA (%)
5-year average ROE (%)
RBL (FY16)
60%
93
146
239
4.8
7.2
105
0.8
6.4
YES (FY11)
95%
45
216
261
2.3
11.3
165
1.5
18.0
Both banks are also different in terms of their return ratios through the investment
phase. While Yes Bank consistently generated high return ratios (FY06-11 average
RoA of 1.5% and average RoE of 18%), RBL has been bogged down by sub-optimal
return ratios (FY10-16 average RoA of 0.8% and average RoE at 6.4%).
RBL’s return ratios are significantly weaker than those of Yes Bank at a similar stage
of evolution. However, this is explained by the fact that Yes Bank was a greenfield
bank during its investment phase. On the other hand, RBL’s investment phase has
been more akin to a turnaround (equivalent of a brownfield).
Considering all the aforementioned parameters, we believe RBL is closely

comparable to Yes Bank (circa 2011).
10 November 2016 35
RBL Bank
Key risks
 Loan book not sufficiently seasoned: Considering RBL’s elevated asset
portfolio growth over past four years, it may be too early to draw any
conclusions on the bank’s asset quality, given the lack of adequate seasoning.
 Ability to attract and retain human capital: RBL’s recent success can largely
be attributed to the management turnaround led by Mr. Vishwavir Ahuja.
Management’s capabilities, strong reputation, network, relationships and
experience in the banking industry are essential to RBL’s development. There is
significant competition for management and other skilled personnel in the
banking industry, which may impact RBL’s ability to attract and retain people.
 Weak SA franchise in a high-growth phase: The core focus of the bank is to
achieve granularity on both sides of the balance sheet. However, CASA ratio has
fallen from 36% in FY10 to 18.6% in FY16. RBL’s ability to scale up its SA
franchise, especially in line with its growth aspirations, may be restricted owing
to intense competition for customer deposits. Inability to grow CASA ratio in line
with the bank’s estimates could pose a risk to RBL’s margins.

10 November 2016 36
RBL Bank
Bull & Bear case
Bull Case






In our bull case, we assume a strong loan CAGR of 45% (vs. base case of 38%)
and marginal benefit of operating leverage (average opex to assets lower by 7bp
vs. base case). Given strong growth opportunities across product segments,
there is a strong possibility of growth surprising on the upside.
We also factor in a better-than-expected performance, with cost of funds
driving average NIM higher by ~70bp over FY16-19.
Fees income CAGR to be strong at 45% over FY16/19 vs. the base case of 39%.
Considering RBL is making significant investments to set up banking operations,
its operating leverage remains a key monitorable. We expect the investment
gestation period to be high. We have factored in operating leverage benefit and
an average CI ratio of 51% (vs. 53% in base case).
We factor in a PAT CAGR of 54% (vs. 45% in base case), average ROAs to be
higher by 10bp than in the base case and exit ROAs to be higher by 1.4%.
Based on the above assumptions and keeping cost of equity constant at 13.6%,
our bull case target multiple is 4.0x FY18 BV, implying an upside of 45%.
In our bear case, we factor in slight moderation in growth (despite strong pent-
up demand across product segments) with a 32% CAGR (vs. 38% in base case).
Apart from growth, important factors leading to moderate PAT CAGR of 32%
are: a) higher cost of funds and in turn average NIMs of 2.9% (3.2% in base
case). Bank expected to cut cost hence have given it a benefit of operating
leverage (opex to assets higher by 27bp vs. base case).
Moderate growth, coupled with pressure on margins and cost of setting up
banking operations, should impact the cost-to-income ratio adversely. In our
bear case, we assume the cost-to-income ratio at 55% (base case of 53%).
We factor in a PAT CAGR of 32% (vs. 45% in base case), average ROAs lower by
30bp and exit ROAs lower by 30bp vs. base case.
Based on the above assumptions and keeping cost of equity constant at 13.6%,
our bear case target multiple is 2.0x FY18 BV, implying a downside of 28%.
Bear Case




Exhibit 65: Scenario Analysis
Parameters (FY16-19)
Loan CAGR
Average NIMs
Fee Income CAGR
Employee exp CAGR
Other Opex CAGR
Average CI Ratio
Opex to average assets
Operating Profits CAGR
Credit Cost average
Average ROA
Average ROE
Exit ROA (FY21)
PAT CAGR
Target Multiple
Upside
Base Case
38%
3.16%
39%
28%
36%
52.80%
2.47%
46%
0.56%
1.20%
15.10%
1.30%
45%
3.0x
20%
Bull Case
45%
3.25%
45%
32%
38%
51.00%
2.40%
53%
0.52%
1.30%
16.90%
1.40%
54%
3.5x
45%
Bear Case
32%
2.92%
30%
24%
30%
55.20%
2.20%
34%
0.60%
0.90%
12.50%
0.90%
32%
2.0x
-26%
10 November 2016 37

RBL Bank
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Change (%)
Non Interest Income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Equity Dividend (Incl tax)
Core PPP*
Change (%)
*Core PPP is (NII+Fee income-Opex)
2012
4,651
2,783
1,868
96.3
671
2,539
123.3
1,400
1,139
1,158.1
187
953
302
31.7
651
1,064.9
75
1,041
1,350.1
2013
8,793
6,218
2,575
37.9
1,264
3,840
51.2
2,244
1,596
40.1
226
1,370
442
32.2
929
42.6
178
1,318
26.6
2014
13,516
10,100
3,416
32.6
2,610
6,026
56.9
4,239
1,787
12.0
462
1,325
398
30.1
927
-0.2
288
1,334
1.2
2015
19,531
13,967
5,564
62.9
4,034
9,598
59.3
5,997
3,601
101.5
602
2,999
928
30.9
2,072
123.6
438
2,880
116.0
2016
27,443
19,251
8,192
47.2
4,905
13,097
36.5
7,673
5,424
50.6
1,144
4,280
1,355
31.7
2,925
41.2
587
4,818
67.3
2017E
37,950
25,456
12,494
52.5
6,952
19,446
48.5
10,452
8,994
65.8
2,213
6,781
2,272
33.5
4,509
54.2
871
8,045
67.0
2018E
47,072
30,772
16,300
30.5
9,787
26,087
34.1
13,870
12,217
35.8
2,379
9,838
3,296
33.5
6,542
45.1
1,263
10,718
33.2
(INR Million)
2019E
61,018
38,993
22,024
35.1
12,441
34,466
32.1
17,719
16,747
37.1
3,211
13,536
4,535
33.5
9,002
37.6
1,738
15,349
43.2
Balance Sheet
Y/E March
Share Capital
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Change (%)
of which CASA Dep
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Fixed Assets
Other Assets
Total Assets
2012
2,149
2,149
9,284
11,433
47,393
132.1
10,193
44.5
11,986
1,272
72,084
5,861
22,647
153.8
41,323
116.9
589
1,664
72,084
2013
2,529
2,529
13,538
16,067
83,405
76.0
16,444
61.3
27,373
2,787
129,634
6,886
55,160
143.6
63,762
54.3
943
2,883
129,634
2014
2,720
2,720
17,427
20,148
115,986
39.1
23,697
44.1
38,955
6,892
181,981
11,923
64,770
17.4
98,350
54.2
1,343
5,595
181,981
2015
2,935
2,935
19,370
22,304
170,993
47.4
31,574
33.2
69,627
8,123
271,047
21,703
97,923
51.2
144,498
46.9
1,644
5,278
271,047
2016
3,247
3,247
26,645
29,892
243,487
42.4
45,378
43.7
105,362
12,870
391,611
24,499
144,360
47.4
212,291
46.9
1,773
8,688
391,611
2017E
3,617
3,617
37,789
41,406
337,229
38.5
70,249
54.8
85,553
15,726
479,914
27,694
137,142
-5.0
302,514
42.5
2,573
9,991
479,914
2018E
3,617
3,617
43,068
46,686
463,690
37.5
98,913
40.8
89,144
19,024
618,543
37,223
157,714
15.0
408,394
35.0
3,223
11,989
618,543
(INR Million)
2019E
3,617
3,617
50,332
53,949
637,573
37.5
143,662
45.2
92,053
23,045
806,621
47,772
189,256
20.0
551,333
35.0
3,873
14,387
806,621
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
PCR (Excl Tech. write off)
PCR (Incl Tech. Write off)
E: MOSL Estimates
331
84
0.80
0.20
74.7
79.9
259
69
0.40
0.11
73.4
83.5
778
305
0.79
0.31
60.8
65.7
1,112
386
0.77
0.27
65.3
68.3
2,081
1,245
0.98
0.59
40.2
55.9
3,279
1,276
1.08
0.42
61.1
67.7
5,626
1,967
1.37
0.48
65.0
68.6
(%)
8,947
2,950
1.61
0.53
67.0
67.6
10 November 2016 38
RBL Bank

Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
Int. Expense/Int.Income
Fee Income/Net Income
Non Int. Inc./Net Income
Efficiency Ratios (%)
Cost/Income*
Empl. Cost/Op. Exps.
Busi. per Empl. (INR m)
NP per Empl. (INR lac)
* ex treasury and Recoveries from written off accounts
Asset-Liability Profile (%)
Loans/Deposit Ratio
CASA Ratio
Investment/Deposit Ratio
G-Sec/Investment Ratio
CAR
Tier 1
87.2
21.5
47.8
63.2
23.1
22.8
76.4
19.7
66.1
59.1
17.1
16.8
84.8
20.4
55.8
61.8
14.6
14.3
84.5
18.5
57.3
77.4
13.1
12.7
87.2
18.6
59.3
71.2
12.9
11.1
89.7
20.8
40.7
73.8
13.1
11.1
88.1
21.3
34.0
73.5
11.7
9.8
86.5
22.5
29.7
84.2
10.3
8.8
56.1
60.1
57.4
0.6
62.9
55.3
74.0
0.6
75.6
43.6
77.6
0.4
66.5
50.2
84.6
0.7
61.4
48.2
105.1
0.8
56.4
46.0
126.8
1.0
56.2
45.1
154.7
1.3
53.3
44.1
192.1
1.7
5.8
1.2
59.8
21.7
26.4
6.8
0.9
70.7
23.0
32.9
5.1
0.6
74.7
30.3
43.3
9.8
0.9
71.5
26.8
42.0
11.2
0.88
70.1
26.7
37.5
12.6
1.0
67.1
25.5
35.8
14.9
1.2
65.4
26.6
37.5
17.9
1.3
63.9
27.2
36.1
9.6
11.5
6.7
7.0
7.2
2.6
3.8
9.3
11.7
6.5
7.3
7.4
1.9
2.7
9.4
11.4
6.9
7.6
7.7
1.8
2.4
9.4
11.6
6.4
7.1
7.6
2.4
2.7
8.9
10.9
6.2
6.5
7.3
2.4
2.7
9.3
10.6
6.9
6.6
7.5
2.7
3.0
9.1
10.2
6.5
6.3
6.8
2.8
3.1
9.1
10.1
6.3
6.1
6.5
3.0
3.3
2012 2013 2014 2015 2016 2017E 2018E 2019E
Valuation
Book Value (INR)
Change (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Change (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
E: MOSL Estimates
0.3 0.6
0.2
0.9
0.2
1.2
0.3
3.0 3.7
21.2
3.4
-7.2
7.1
107.3
52.9 63.3 73.3 75.1
53.1 63.5
19.5
74.0
16.6
76.0
2.6
92.0
21.1
4.1
89.5
4.2
9.0
27.6
42.2
1.5
0.4
114.4
24.4
3.3
114.0
3.3
12.5
38.4
30.5
2.1
0.5
129.0
12.8
2.9
128.3
3.0
18.1
45.1
21.0
3.0
0.8
149.1
15.6
2.5
148.1
2.6
24.9
37.6
15.3
4.1
1.1
10 November 2016 39
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