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MUMBAI: RBL bank reported a 46 percent increase in the September quarter on Saturday net profit at Rs 294 crore, aided by margin expansion and healthy core income growth. The city-based lender had reported a net profit of Rs 202 crore in the year-ago period.
Core interest income rose 26 per cent to Rs 1,475 crore on the back of a 21 per cent rise in advances and a wide expansion in net interest margin to 5.54 per cent from 5.02 per cent a year ago.
Other revenue rose 21 percent to Rs 704 crore in the September quarter, compared to Rs 583 crore in the year-ago period.
The bank carried out a reclassification during the quarter to provide all stakeholders with a better view of its business performance. R Subramaniakumar said.
Interestingly, many of the changes implemented relate to the unsecured loan book, about which the RBI has flagged systemic concerns in the recent past.
The bank received a write-back of a tax provision of Rs 298 crore during the quarter, which it intended to use towards making a contingent provision for standard unsecured advances of Rs 223 crore, and also reduced the entire provision for unpaid advances on such loans to 120 crore. days compared to the earlier 180 days leaving with a one-time impact of Rs 48 crore.
Subramaniakumar emphasized that the bank’s overall unsecured portfolio is “robust” and well managed, but added that it is taking the above steps as a prudential measure.
The fresh slippage on credit card portfolio has risen to Rs 290 crore, compared to Rs 275 crore in the year-ago period, a senior official said, adding that there is nothing untoward or worrying about it.
At a time when much of the banking system is competing for deposits, the bank’s deposit growth during the quarter under review was 13 percent.
Subramaniakumar said the bank aims to grow both advances and deposits by 20 percent during the fiscal and reduce dependence on bulk deposits.
In terms of asset quality, the gross non-performing asset ratio improved to 3.12 percent from 3.80 percent in the same period last year and 3.22 percent in the June quarter.
Total provisions rose to Rs 640.35 crore from Rs 241.50 crore in the previous quarter.
The bank’s capital adequacy stood at a healthy 17.07 percent as of September 30, 2023.
Core interest income rose 26 per cent to Rs 1,475 crore on the back of a 21 per cent rise in advances and a wide expansion in net interest margin to 5.54 per cent from 5.02 per cent a year ago.
Other revenue rose 21 percent to Rs 704 crore in the September quarter, compared to Rs 583 crore in the year-ago period.
The bank carried out a reclassification during the quarter to provide all stakeholders with a better view of its business performance. R Subramaniakumar said.
Interestingly, many of the changes implemented relate to the unsecured loan book, about which the RBI has flagged systemic concerns in the recent past.
The bank received a write-back of a tax provision of Rs 298 crore during the quarter, which it intended to use towards making a contingent provision for standard unsecured advances of Rs 223 crore, and also reduced the entire provision for unpaid advances on such loans to 120 crore. days compared to the earlier 180 days leaving with a one-time impact of Rs 48 crore.
Subramaniakumar emphasized that the bank’s overall unsecured portfolio is “robust” and well managed, but added that it is taking the above steps as a prudential measure.
The fresh slippage on credit card portfolio has risen to Rs 290 crore, compared to Rs 275 crore in the year-ago period, a senior official said, adding that there is nothing untoward or worrying about it.
At a time when much of the banking system is competing for deposits, the bank’s deposit growth during the quarter under review was 13 percent.
Subramaniakumar said the bank aims to grow both advances and deposits by 20 percent during the fiscal and reduce dependence on bulk deposits.
In terms of asset quality, the gross non-performing asset ratio improved to 3.12 percent from 3.80 percent in the same period last year and 3.22 percent in the June quarter.
Total provisions rose to Rs 640.35 crore from Rs 241.50 crore in the previous quarter.
The bank’s capital adequacy stood at a healthy 17.07 percent as of September 30, 2023.
