RBL Bank (RBLBANK) Investor Update summary

Discontinuation of co-brand partnership

• The co-brand credit card partnership with Bajaj Finance, started in 2016 and comprising 3.4 million cards, will discontinue fresh sourcing due to changing synergies and mutual agreement between both parties.

• Existing cardholders will see no change in service, benefits, or rewards; cards will be reissued as RBL-branded upon renewal.

• The bank will continue to manage all aspects of the existing co-brand card portfolio, including customer service and collections.

Transition and financial impact

• No significant impact on profitability is expected from the discontinuation; the co-brand portfolio remains profitable and is expected to normalize by Q1 FY26.

• Credit card receivables from Bajaj Finance constitute about 50-55% of the total, with spend and attrition trends expected to remain stable.

• Acquisition costs for direct sourcing are higher than through Bajaj, but trail payouts to partners are eliminated, balancing overall economics.

• No one-time fees or buyout clauses are involved in the transition; trail payouts on existing cards will continue for 2-3 years.

New sourcing strategy and partnerships

• Direct sourcing now accounts for 35% of new issuances, targeted to reach 50% in coming quarters.

• New co-brand partnerships have been established with Mahindra & Mahindra Finance, TVS Credit, Indian Oil, and IRCTC, with better negotiated terms.

• The focus is shifting to acquiring mass affluent and affluent customers, aiming for cross-sell opportunities beyond credit cards.

• Credit card portfolio growth is guided at 10-15% annually, with market share expected to be maintained.