The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Harjeet, first question on micro finance. You mentioned the higher rates because of RBI circular. Can you please elaborate what part of the circular
made you do that? And what is it exactly that you're changing in the MFI business?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: And just to be -- sorry...
Rajeev Ahuja - RBL Bank Limited - Interim MD, CEO, Head of Strategy, Retail, Transaction Banking, Financial Inclusion & Exec. Director
But let me just add. I think the other important thing is, while I think this is a necessary build-out investment, the collateral benefits of putting a
robust system at a household level will give us more opportunities with the household, especially the household above a certain income level
beyond micro finance, which today because it's a very simplified operating model, we are not able to capture. So those are things which obviously
will take a little while, but that's our expectation from a medium-term perspective. Sorry, please go ahead.
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Okay. Moving on to cards, I mean we discussed the cards circular. So besides the NBFC, there were other parts of the circular, including data sharing
for co-branded cards, et cetera. So the rest of that circular, how do you think that impacts any part of the card business for you? And then your
comments on the broader industry as well the way card business is being running?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: So that 12-month rule, if it is implemented as it stands now, do you think the number of outstanding cards can decline meaningfully at the industry
level, not something specifically for us?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Dramatically, right? Yes, that's what I would thought.
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: So on that point, when you say when card is not active for you, how do you define active?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Okay. All right. Moving quickly to liabilities. Can you share any data around the number of retail accounts SA or TD. Because for this particular
quarter, the difference between average CASA and period end CASA is the highest that we've seen in a very long time.
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MAY 12, 2022 / 12:00PM, RATB.NS - Q4 2022 RBL Bank Ltd Earnings Call
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: All right. The other question is that given that we are in a rising rate environment and probably a pretty steep rising rate environment, what's your
approach going to be on the liability side, I mean, between TD and SA rates, how are you thinking about changing those rates?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Yes. And for you, the entire wholesale growth plus home loan in retail would be floating, right?
Question: Manish B. Shukla - Axis Capital Limited, Research Division - Analyst
: Okay. Sure. Sorry, one last question to Harjeet. Harjeet, you mentioned that the -- on a value basis, the card split between Bajaj and non-Bajaj would
be 55%-45%. But what would be your success in terms of cross-sell between Bajaj and non-Bajaj, especially on the liability side? Is it better in 1
channel versus the other?
Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst
: Sir, just wanted to check, is there any update on timelines with respect to the MD and CEO where is the process right now on that?
Rajeev Ahuja - RBL Bank Limited - Interim MD, CEO, Head of Strategy, Retail, Transaction Banking, Financial Inclusion & Exec. Director
Rohan, I'm Rajeev here. I think it's in the final leg. So maybe I don't know the timeline. Obviously, this is with the regulator now. So it should be
soon, but I cannot give a timeline, but that's where it stands.
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MAY 12, 2022 / 12:00PM, RATB.NS - Q4 2022 RBL Bank Ltd Earnings Call
Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst
: Sure. And sir, lastly, what is the PSL level for the bank? Are we PSL surplus right now?
Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst
: 4% to 5%, okay. So if you can just share what is the rate on the PSLC right now? And given the fact that HDFC with the merger may look to aggressively
acquire PSLC, how do we expect the market to evolve there?
Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst
: Sure, sir. And lastly, if you can share what is the tech spend as a percentage of total OpEx?
Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst
: Okay. So if you were to include both of them? .
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