RBL Bank (RBLBANK) Investor Update summary

Discontinuation of co-brand partnership with BFL

• The co-brand credit card partnership with Bajaj Finance, which began in 2016 and resulted in 3.4 million cards, is being discontinued for new sourcing due to changing synergies and business priorities.

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

• The decision was mutually agreed upon, with Bajaj Finance exiting the co-brand credit card business line entirely.

Impact on credit card business and customer base

• RBL will continue to manage the full portfolio of co-branded cards, with no impact on customer experience or ownership.

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

• New co-brand partnerships have been established with Mahindra & Mahindra Finance, TVS Credit, Indian Oil, and IRCTC, diversifying sourcing channels.

• The bank aims to focus on mass affluent and affluent segments for deeper customer relationships.

Financial and operational implications

• 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 account for 50-55% of the outstanding book.

• Acquisition cost for direct channels is higher (X) than for BFL (0.75X), but direct sourcing eliminates trail payouts.

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