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CorporatePresentation

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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

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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

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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

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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

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Highly Capable Management Team

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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

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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

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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

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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

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Naresh KariaChief Financial OfficerNaresh KariaChief Financial Officer

• Ex-Country Controller, Citibank NA India

• Chartered Accountant

Ope

ratio

nal,

Core

Exp

erie

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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

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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

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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

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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

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FAERING CAPITAL

Global & Indian Institutions:

Global Private Equity Firms:

Indian Private Equity Firms:

Strong Shareholders

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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

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Our ‘Vision-2015’

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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

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An Update onOur Journey So Far…

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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

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Journey So Far…

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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

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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)

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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”

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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

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• 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

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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.

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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

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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

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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

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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