RBL Bank Ltd

R Subramaniakumar

MANAGING DIRECTOR & CEO

Dear Stakeholders,

It is indeed a proud moment for me to present to you RBL Bank's Integrated Annual Report for FY 2022-23, which signi es a momentous milestone as we celebrate the 80th anniversary of our Bank's foundation. In doing so, I am equally inspired and awed. Inspired by my journey in this organisation - which began a little more than a year ago, and awed by the significant strides we have made together.

I am pleased to share that we have achieved our highest annual profit this year. This achievement was made possible through the successful implementation of various initiatives, including new product launches and the scale up of granular retail products. I extend my heartfelt gratitude to the dedication and persistence of our 18,000+ team members, whose hard work has been instrumental in achieving this. As we move forward, we plan to scale up existing products and introduce new ones, both digitally and through our branches, in the coming year. This approach will contribute to a more comprehensive and widespread growth. This marks just the beginning of our journey towards RBL Bank 2.0. Numerous more steps will follow as we work diligently to accomplish our strategic roadmap for Vision 2026.

Guided by our esteemed Board and with the collective efforts of everyone associated with RBL Bank, we have significantly strengthened our franchise and positioned ourselves as a trusted partner for our customers and stakeholders.

FY 2022-23, an Overview

FY 2022-23 was the first full year of the post-pandemic era. We exhibited undaunted determination towards recovery and business growth.

Despite the immense pressure stemming from the global macroeconomic situation and the ongoing impacts of the Russia-Ukraine con ict, both the Indian banking sector and the economy displayed remarkable resilience and surged ahead steadily. The BFSI sector has admirably served the country through this challenging period by reimagining its services and products digitally.

Being a proud participant in the BFSI space, we demonstrated our abilities as a strong and agile institution. We made sincere efforts during the year to steer the Bank's return to pro tability and growth. Our efforts have been recognised in ways that are reflected not just in our financial performance but also in an overall enhancement of our relationships with each of our key stakeholders. Our journey over the past year evidences the value of teamwork with 'One Bank, One Approach', truly making us 'Apno ka Bank'.

Our growth and performance have also been acknowledged by various institutions and this recognition really motivates us to march ahead with renewed vigour. In 2023, we re-entered the Top 100 most valued brands in India list as per Brand Finance, world's leading brand valuation and research agency which values over 5,000 brands globally. Additionally, UMEED 1000, our agship CSR initiative won us India's Best Bank for CSR at the International AsiaMoney Best Bank Awards, 2023.

Our vision is focussed on achieving significant growth while maintaining a strong commitment to delivering excellent service. We view FY 2022-23 as a pivotal period for establishing the groundwork of our aspirations, as we continue to focus sharply on:

Here are some of the key highlights of the year that have shaped our path forward:

? Growing customer acquisition and retention have led to a significant boost in our CASA (14% year-on-year) to reach 31,717 crore, while deposits grew by 7.4% to 84,887 crore.

? Our balance sheet strength improved significantly, with net advances growing by 17% to reach 70,209 crore. Out of this, retail - our key focus area - showed significant growth of 21% at 37,778 crore

? We registered the highest ever Pro t After Tax of 883 crore, compared to a loss of 75 crore reported in FY 2021-22.

? Our other income increased to 2,490 crore.

? Our key financial ratios such as Return on Assets, CASA, Net Interest Margin stood at 0.83%, 37.4%, and 4.67% as against - 0.07%, 35.3%, and 4.45%, respectively.

? Our asset quality continued to witness steady improvement, with GNPA and NNPA at 3.4% and 1.1%, respectively, as against 4.4% and 1.3% in FY 2021-22.

New Business Verticals

I would also like to draw your attention to the robust growth of our new business verticals, viz. tractor, home loans and mortgage loans since these new verticals accounted for 8% of our advances during the year. I am delighted to share that we have successfully launched additional retail asset products, including gold loans, business loans, two-wheeler & four-wheeler loans and used car loans. Most of these products are set to scale in FY 2023-24.

Our primary focus has been on widening our product suite to cater to our 13 million plus customer base. Through conscious efforts, we are driving these secured retail asset products, which will significantly strengthen our balance sheet. Already, two of our retail agship products - credit cards and micro nance loans - are scaling as per the plan. Besides, our consistent focus on cross-selling through data analytics will further contribute to achieving our targets.

Digital Journey

Our digital journey is focussed on improving customer experience and services. This agenda is underpinned by robust data governance and information security while enabling our people to achieve higher levels of productivity by automating repetitive tasks and processes.

We continue to prioritise investments in technology that help us target a wider customer base across all segments. We have also automated several processes, which have helped free up the bandwidth of our people, enabling better engagement with revenue-positive activities.

We continued to launch solutions and features to serve our customers better. Additionally, we have developed the Abacus 2.0 Common Data Platform, which uni es customer data across all business segments, thereby enhancing our understanding of our customer's needs.

We are incorporating digital technologies wherever possible to deliver value at scale. As we continue to re ne our products across various categories, we will actively seek opportunities to increase cross-sell and upsell.

Customer-Centricity, Our Mantra

Through the year, we have aligned our focus to nurture customer relationships based on personal engagement, facilitated by our dedicated relationship managers, and strong user engagement through our digital portals. Our focussed efforts in this direction, notably the impactful campaigns like #FarzBantaHai, customer-centricity training initiatives designed for our customer support trainers and our enhanced product suite, have significantly enriched our connections with our valued customers.

I would like to appreciate our branches for paving the way for enhanced customer engagement. They have consistently come up with innovative ways to have meaningful interactions with various customer segments. These include round-the-year hosting of numerous events, activities and celebrations at our branches to support and educate our customers across all ages.

Moreover, we have continued to strengthen our partnerships with leading brands, financial institutions, and start-ups to deliver hybrid products and services that enrich our customers' experience. A prime example of this is the RBL Bank-RuPay National Common Mobility Card along with BMRCL, which is set to revolutionise the way Indian citizens travel, shop, and manage their spending.

Future-Proof Strategies

FY 2022-23 has also characterised certain decisions and activities that contribute towards making the organisation future-proof. As part of our Vision 2026, we have devised strategies and identified ve key goals based on our engagements with stakeholders and the analysis of emerging trends and macro opportunities. These goals are as follows:

? Strengthening the core business and expanding into nascent verticals through portfolio diversi cation, product differentiation, and continuous innovation.

? Focussing on distribution-led growth, with a strong emphasis on cross-selling by leveraging our existing operational investments.

? Building a data led omnichannel approach with a customer- first focus by utilising digital expertise and technical know-how to deliver personalised and seamless customer experiences.

? Promoting responsible banking by effectively leveraging RBL Finserve and focussing on driving scale through sustainability.

? Enhancing workplace diversity and cultivating a future-ready workforce that is equipped with the skills and knowledge needed to thrive in an ever-changing business landscape.

Paying Back to the Society

Corporate Social Responsibility (CSR) is a vital aspect of any responsible organisation. We recognise that genuine success goes beyond financial metrics; it lies in the transformative impact we make on the lives of those in need. As a part of our long-term focus, we actively engage in initiatives that promote health, education, and livelihood opportunities, which we collectively term as 'HELO.' We rmly believe that by investing in these key areas, we can create a positive and lasting impact on the communities we serve.

Marching Towards a Sustainable Tomorrow

Our Vision 2026, which encompasses our strategy for the near term, also spotlights our commitments towards upholding the ESG principles for a more sustainable tomorrow.

We value our role within the society as an enabler for progress and growth for our customers, our people, our partners, and the communities we work with.

We are actively taking strides to strengthen the management of our climate risks by endorsing the 'Taskforce on Climate-related Financial Disclosures (TCFD)' in August 2022. Furthermore, we are proud to have achieved our first three qualified Green Loans under IFC's US$ 150 million credit line. Throughout the year, we actively supported and furthered our existing customer education and awareness programs dedicated to community development.

In addition to this, we have introduced several initiatives within the Bank speci cally tailored to drive the growth and advancement of our women colleagues. These include hiring returnee women through our second career program (RETAKE), protecting the ratings of women on maternity leave, conducting women leadership development programs, tying up with diversity consultants and conducting gender sensitisation workshops for campus hires and employees, among others.

Re ecting our performance in sustainability practices, we were recently recognised under the 'Strong' category of the ESG Risk management band in CRISIL's Sustainability Yearbook 2022. Similarly, ESG Risk AI has given an overall rating of ESG-RISK BBB, which signi es that the Bank has a good track record of risk management. Also, Re nitiv has given us an ESG score of 67/100 in FY 2022.

Badhte Kadam

Going forward, our core priority continues to be granularity and retailisation of our portfolio, while maintaining our asset quality standards. To this end, we are innovating and enhancing our products suite, and strengthening our efforts through wider reach and higher quality customer service and engagement.

During my conversations with our customers, employees, investors , partners, and others in this past year,

I was constantly reminded of the potential of an institution like ours and the expectations that follow. We are the 'Apno ka Bank' and these apne of ours want us to succeed. I can con dently say on behalf of my people that this expectation gives us the motivation to march ahead with Badhte Kadam.

To our shareholders and investors once again, I would like to extend a note of deeply felt gratitude with your continued support and direction, we are building a Bank that will scale heights and offer testimony to the relationships nurtured through these 80 years.

Thanking You,