RBL Bank net dives 69%
RBL Bank on Wednesday reported a 69% year-on-year (y-o-y) slide in its net profit for the quarter ended December to Rs 70 crore as the asset quality deteriorated and provisions surged 297% y-o-y to Rs 638 crore.
The net interest income (NII) rose 41% to `923 crore. NII is the difference between interest earned and interest paid by a bank. The bank saw a 30% y-o-y rise in non-interest income to Rs 487 crore.
The net interest margin (NIM), a key measure of profitability, improved 27 basis points (bps) from the end of September to 4.57%.
Gross non-performing assets (NPAs) rose 73 basis points from the end of September to 3.33% of the loan book and net NPAs were up 51 bps sequentially at 2.07%. Slippages, or additions to bad loans, stood at Rs 1,048 crore, down from Rs 1,377 crore in Q2. The bank’s provision coverage ratio for the quarter fell to 58.07% from 63.22% in Q3FY19.
RBL Bank’s net advances grew 20% y-o-y to Rs 59,635 crore for the third quarter. The wholesale portfolio grew 3% to Rs 29,290 crore, while retail assets grew 49% to Rs 21,874 crore. The growth in the retail book was driven by a 109% y-o-y rise in credit card portfolio to Rs 9,386 crore.
The bank’s deposits grew 21% y-o-y to Rs 62,907 crore as on December 31, while low-cost current account savings account (CASA) deposits grew 31% to `16,855 crore. The CASA ratio improved to 26.8% at the end of Q3FY20 from 24.6% a year ago.
On Wednesday, RBL Bank’s shares ended 0.67% lower at `339.1 on the BSE. The results were declared after the close of trade.