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CorporatePresentation
2
Contents
• About Ratnakar Bank 3-15
A Legacy of 70 Years
2010: The New Beginning
A Strong Management Team & Board of Directors
Our Shareholders
Vision-2015
• An Update on Our Journey So Far 16-26
Capital Raising
Key Financial Indicators
Geographical Expansion
Acquisition of RBS’s Businesses in India
An Update on Technology, Client Segments & Products
• Summary 27
3
A legacy of 70 years– A bank with roots into pre-independent India (established in
1943)
– Established to fulfill the call of self reliance given during Indian
freedom struggle
– Concentrated largely in Maharashtra, Karnataka and Goa till
2010
– Currently on a transformational journey to become a new age
bank under a new management team
– A network of 131 branches and over 225 ATMs which is
expanding continuously
About Ratnakar Bank
4
Group of professionals coming together to build an institution focused on value creationfor all its stakeholders.
Group of professionals coming together to build an institution focused on value creationfor all its stakeholders.
2010: The New Beginning
ProfessionalProfessional• Team of industry
professionals and stalwartscoming together
MeritocracyMeritocracy• Foundation of the new
organization based on merit• Reward for performance
EntrepreneurshipEntrepreneurship• Concept of Intra-preneur• Each employee a co-owner
in the growth story• ESOPs an integral part of
compensation
Strong CapitalBaseStrong CapitalBase
• Significant capital raised frommarquee Investors to fundexpansion and be well abovethe adequacy norms
CorporateGovernanceCorporateGovernance
• Independent strong board• Board managed bank
GrowthStrategyGrowthStrategy
• Significant increase in branchnetwork and balance sheet
• High investments in new ageproducts and services
5
Our Goal is to be the ‘Bank of Choice’ in our selected product,client and geographic segments
Our Goal is to be the ‘Bank of Choice’ in our selected product,client and geographic segments
“To develop a professionally governed and managed platform
based on relationships, knowledge, sector expertise and
technology to :
• Build a customer-centric Retail Banking business
• Identify and partner with SMEs and Emerging Large
Corporates with outstanding business models, providing
them a full range of financial services so as to enable them to
become world-class enterprises
• Deliver robust and cost-effective banking services that
promote Financial Inclusion, catalyze growth and reduce
social inequalities”
Our Mission
6
Vishwavir AhujaMD & CEOVishwavir AhujaMD & CEO
• Ex-CEO, Bank of America India
• 30+ year long banking career
• MBA (IIM-A), MS in Finance (U-Mich)
Rajiv AhujaHead of StrategyRajiv AhujaHead of Strategy
• Ex-Head, Investor Sales / Capital Markets, Citibank India
• 25+ year long career in Banking & Financial Services
• MBA (IIM-A), B-Com (University of Delhi)
Nitin ChopraHead, Retail BankingNitin ChopraHead, Retail Banking
• Ex-Head, Consumer Banking, ABN Amro India
• Ex-CEO, Bharti AXA Life Insurance
• MBA (IIM-A), B-Tech (IIT-Kanpur)
Lead
ersh
ip E
xper
ienc
e,N
etw
ork
Highly Capable Management Team
7
R GurumurthyHead, Corporate &Institutional Banking
R GurumurthyHead, Corporate &Institutional Banking
Highly Capable Management Team
• Ex-Head FI Strategic Coverage Group at Standard
Chartered Bank
• Ex head Corporate Banking, South India, Bank of America
• Over 25 years of banking experience in India & Hong Kong
Lead
ersh
ip E
xper
ienc
e,N
etw
ork
Sunil GulatiChief Risk OfficerSunil GulatiChief Risk Officer
• Ex-Group President, Chief Risk Officer, Head of
Corporate Development at Yes Bank
• MBA (IIM-A), B-Tech (IIT Delhi)
Shanta ValluryHead - DistributionShanta ValluryHead - Distribution
• Ex-Vice President, Partnerships – American Express
• Was heading Retail Liabilities at ICICI Bank
• MBA, Jamnalal Bajaj Institute of Management Studies
8
Suhas SahakariHead - Kolhapur, Sangli &Belgaum Region
Suhas SahakariHead - Kolhapur, Sangli &Belgaum Region
• Ex-Head, SME Business, Axis Bank
• Part of initial team at Axis Bank, Ex-SBI
• Total banking work experience of over 30 years
Highly Capable Management Team
Sandeep ThapliyalHead - CommercialBanking Coverage
Sandeep ThapliyalHead - CommercialBanking Coverage
• Ex-Head of SME Business, Citibank India
• Over 20 years of experience in Commercial Banking,
Corporate Banking, Project Finance & Investment Banking
• MBA from MDI, Gurgaon
Andrew GraciasHead – Financial MarketsAndrew GraciasHead – Financial Markets
• More than 17 years of experience with MNC Banks
• Ex-Head, Sales for Global Markets in India, for UBS.
• Ex-Bank of America
Lead
ersh
ip E
xper
ienc
e,N
etw
ork
9
Surinder ChawlaHead – Branch BankingSurinder ChawlaHead – Branch Banking
• Over 20 years of retail banking experience across
Standard Chartered, ABN Amro Bank and HDFC Bank.
Highly Capable Management Team
Aseem GandhiHead – DevelopmentBanking & FinancialInclusion
Aseem GandhiHead – DevelopmentBanking & FinancialInclusion
• Ex-Head Microfinance Institutions Group, Project Lead -
Yes Sampann - Yes Bank
Manoj RawatHead – Agri BusinessManoj RawatHead – Agri Business
• 18 Years of experience in Agribusiness
• Worked with NABARD and Fullerton
Lead
ersh
ip E
xper
ienc
e,N
etw
ork
10
Naresh KariaChief Financial OfficerNaresh KariaChief Financial Officer
• Ex-Country Controller, Citibank NA India
• Chartered Accountant
Ope
ratio
nal,
Core
Exp
erie
nce
Highly Capable Management Team
Tajinder KumarHead Human ResourcesTajinder KumarHead Human Resources
• Ex-HR Director of Asia Pacific Regional Group Tech & Ops
organization of Deutsche Bank AG in Singapore
• Over 22 years of HR Management experience in India &
Singapore
Joginder Singh Rana,Chief Operations OfficerJoginder Singh Rana,Chief Operations Officer
• Has held senior leadership roles in Operations &
Technology, Sales, Collections, Risk, Compliance / Control
and BPO at Citigroup
• Over 21 years of Banking experience in India & overseas
11
Sanjay SharmaHead – Technology,Innovation & CustomerFulfilment
Sanjay SharmaHead – Technology,Innovation & CustomerFulfilment
• Ex-MD & CEO, IDBI InTech Ltd
• Over 25 years of experience in technology
Ope
ratio
nal,
Core
Exp
erie
nce
Highly Capable Management Team
Satish DhawanChief Infrastructure andAdministration Officer
Satish DhawanChief Infrastructure andAdministration Officer
• Over 30 years of experience across Infrastructure and
Admin management
• Ex-Citibank
Sanjit ChowdhryHead – Wholesale RiskSanjit ChowdhryHead – Wholesale Risk
• Ex-Director- Barclays Bank
• Over 16 years of credit expertise
12
Board of DirectorsSubhash KutteChairman• Non Executive Chairman• 30+ year long career in the Bank
Vishwavir AhujaManaging Director & CEO• Ex CEO, Bank of America India• 30+ year long banking career• MBA (IIM-A), MS in Finance
(U-Mich)
Girish Godbole• Wide experience in the area of
micro-finance & co-operativesector
• MBA (IIM-A), MA in Social Work -TISS
Bahubali Arwade• Director since September, 2006• Wide experience in agriculture &
rural banking
Sudhir Rao• Founder Director- Karvy Investor
Services
Jairaj Purandare• Former Regional Managing
Partner- PWC
Kiran Patil• MD - Ghatge Patil Industries
Limited• Mechanical Engineer, MS
(Industrial Engineering) and MBA• Over 40 years of experience
Narayan Ramchandran• Ex CEO & Country Head-Morgan
Stanley• 23+ years finance and banking
career• B.Tech (IIT, M), MS (U-Mich) &
CFA.
Vimal Bhandari• MD & CEO of Indostar Capital
Finance Pvt Ltd.
D Sivanandhan• Ex Director General of Police-
Maharashtra
Ajay Michyari• GM with RBI
13
FAERING CAPITAL
Global & Indian Institutions:
Global Private Equity Firms:
Indian Private Equity Firms:
Strong Shareholders
14
Branches – 89 Branches - 130 Branches – 225ATMs - 13 ATMs - 184 ATMS - 500
~300,000 ~450,000 ~900,000
700 ~1900 ~3300
Branches/ ATMs
No. ofClients
States
Mar’10 Mar’13 Mar’15 Plan
Maharashtra,Karnataka, Goa
Maharashtra,Karnataka, GoaNCR, UP, TN, AP,MP, Gujarat
Maharashtra,Karnataka, Goa, NCR, UPTN, AP, MP, WB, Gujarat,Raj, Chhattisgarh, Punjab
Employees
19
Our ‘Vision-2015’
15
Employee Snapshot
565704
907
1328
1859
0200400600800
100012001400160018002000
FY 09 FY 10 FY 11 FY 12 FY 13
Y-o-Y Headcount
1000
3000
5500
0
1000
2000
3000
4000
5000
6000
FY 11 FY 12 FY 13
Training Person Days
37%
46%
10% 7%
Age Classification
Less than 30 years
30 - 40 years
40 - 50 years
Above 50 years
Median Age of employees is 29 years
Gender Diversity
16
An Update onOur Journey So Far…
17
2010Asset
2013 OnwardsScale up
2010-12Transformation
Governance• Strengthen Board – diverse
expertise• Bring in highly reputed action
leaders‘Old Age Private SectorBank’ (since 1943)
• Low growth rate• Strong rural and semi-
urban presence butunderutilized
• Fragmented shareholderbase
• Underinvested in moderntechnology, products etc.
Management• Bring best-in-class talent for
top management roles• Attract highly trained mid-
management
Shareholding + FinancialStrength
• Consolidate fragmentedshareholding
• Further institutional capitalraising
‘New Age Private Bank’(2013)
• Building scale• Broaden client/ geographic
profile• Leverage technology and
platform• Expand products and
services• Strong human capital• Strengthen risk
management
8
Journey So Far…
18
Capital Raising
2014 /15Planned IPO
Jan’11INR 703 Cr investmentat price of INR 67 per
share
Mar’13INR 324 Cr investmentat price of ~ INR 110
per share
2009Capital base of ~INR
275 Cr
19
Key Financial Indicators
0.97
0.36
0.2
0.110.00
0.20
0.40
0.60
0.80
1.00
1.20
FY 10 FY 11 FY 12 FY 13
349
1074 1130
1594
0
200
400
600
800
1000
1200
1400
1600
1800
FY 10 FY 11 FY 12 FY 13
19.11
12.33
65.73
92.47
0102030405060708090
100
FY 10 FY 11 FY 12 FY 13
11701905
4132
6376
15852042
4739
8340
FY 10 FY 11 FY 12 FY 13
Deposits
Advances
Deposits & Advances Net Worth(in Rs Cr)
Net NPA(%)
Net Profit(in Rs Cr)
(in R
s Cr)
20
High Growth in Financial Parameters
Financial Metrics (INR Cr) FY 10 FY 11 FY 12 FY13 CAGR
Advances (Net) 1,170 1,905 4,132 6,376 76%
Deposits 1,585 2,042 4,739 8,341 74%
NII 59 95 187 257 64%
Non-Interest Income 13 19 67 126 113%
PBT 29 19 96 136 67%
Gross NPA / Gross Advances 2.3% 1.1% 0.8% 0.4%
Net Worth 350 1,077 1,131 1615
RoA 1.1% 0.5% 1.4% 1.1%
Other Income / Total income 18.3% 16.3% 26.4% 32.9%
Cost to income (%) 53.6% 83.1% 54.8% 59.2%
CAR (%) 36.0% 59.4% 22.7% 17.1%
Ratings from ICRA (An associate of Moody’s Investor services) :-• Certificate of Deposits Program: “ICRA A1+”• Short Term Fixed Deposit Program: “ICRA A1+”• Medium Term Fixed Deposit Programs: “MAA- with stable outlook”
21
Geographical Expansion
ExistingBranches
BranchesLaunched in
FY12
ProposedBranchesFY 13-14
• 131 Branches and over 225 ATMs
• Strong presence along the ‘NH-4 Belt’ – National
Highway that runs from Mumbai to Chennai
along Maharashtra, Karnataka and Tamil Nadu
• NH-4 belt is estimated to be one of India’s richest
per-capita income regions with strengths across
agriculture, industry and services
• Developing presence on ‘NH 8 Belt’- National
Highway that runs from Delhi to Mumbai via
Gujarat & Rajasthan.
• Well diversified branch presence across metros,
urban, semi-urban and rural areas
• Significant ability to leverage franchise in rural
and semi-urban areasPlaces with
FI & AgriPotential
22
• Announced acquisition of RBS’s Business Banking, Credit Cards & Mortgage
businesses in India
• Good fit into our own organic growth plans
• Accelerates the achievement of strategic objectives
Business diversification
Acquiring a profitable and healthy business, client fit
Gives us a high degree of CASA
Gives us a wider platform to compete with larger banks and
impending new licensees
• Ready and able to consummate the acquisition
Strong Capital base
Organisational capability in place
• Complementarity, No Overlap
Complementary lines of business with least conflict of customer
related policies
Branch locations are in line with our expansion strategy
Acquisition of RBS’s Businesses in India
23
Finacle and Other Strategic ProjectsTechnology
• Implemented Finacle 10. 3 (A new-age CBS platform from
Infosys)
• Ganseva (a scalable platform for rural markets)
• Innovation through strategic partnerships with NTT, IBM etc.
• Awarded the Asian Banker Technology Implementation Award
for Best Core Banking ProjectOperations
• Set up a 400-seater National Operating Centre in Mumbai
• ISO 9001:2008 QMS Certification achieved for NOC
Risk Management Systems (RMS)
• Strengthen RMS through technology – IMACs• Scaled up human aspects through stronger teams,
specialization etc.
24
ExperiencedManagement Team
Strong Systems,Processes & Risk Control
Product, DeliveryInnovation – change gameto play to strengths
Wrap the Bank around thecustomer – meet all needs
Commercial Banking•Expansion into new
industry and tradesegments
•Specific relationship teams•Launching schematic SME
products
Agri and FinancialInclusion Group
•Semi-urban and ruralunderserved; MSMEs,
Agri•Developing expertiseinternally and forging
new alliances
Consumer/RetailBanking
•Densify and expand branchnetwork
•Revamp product suite &customer experience
Corporate &Institutional Banking•“Winners of the Future”
•Businesses which form partof the eco-system of largeMNCs / Indian corporates
Client Segments & Common Building Blocks
25
Small BusinessAssociates
Employees
Personal – BusinessOwner & Key
Decision MakersFamilyWealth
Employees• Salary Accounts .• Payroll cards• Investments Offering• Car / HL Loans Offerings• Select personal Loans
Personal Wallet• Home loan / Car loan• Investments ,Online trading & MF• GI & LI• Savings account• Fixed deposits• LAP / LAS / LAG• DEMAT Account
Business Associated• Online Payments• / CMS solutions• Loan Against
receivable s
Family Wealth• Trust deposits• Family savings Accounts• Online transfers in case
emergency• Wealth Management
Business Wallet• Loans & Advances .• LC / BG• CC / OD,• Working capital• Cash Management• Merchant services• Lease Rent discounting• LAP• Forex
Large Corporates &SME
Products & Services Business Convergence
26
Consolidate
• Build a strong platform
based on Governance,
Management & Capital
• Identify gaps in Systems,
Process , Products and
Technology
• Align organization
structure & HR
Build-Out
• Transform Technology,
Systems and processes to
build a robust base
• Strengthen risk
management systems
• Fully develop product
suite to compete with
New Age Banks
Accelerate
• With the foundation in
place, rapidly replicate and
accelerate
Now in Phase 3June 2010-Dec 2011 July 2011-June 2013
Execution is on Track
27
RatnakarBank
70 YearsHeritage
Robust Governance
ExperiencedManagement which
has Delivered
High QualityInvestors make up aStrong Capital Base
Healthy Financials,Low NPAs, High CARand Strong Growth
Summary
28Presentation updated as on September 2013