In its first declaration of quarterly earnings as a listed company, RBL Bank on Wednesday reported a quarter-on-quarter fall of 8% in its net profit for the three-month period ended September to R89.9 crore, primarily due to a one-time hit in the provision made towards depreciation in the value of an investment.
The operating profit, however, rose 19% Q-o-Q. During the reporting quarter, RBL bought a 9.88% stake in Utkarsh Micro Finance, which was why R28.47-crore provision had to be made.
The lender’s net interest income grew 24% sequentially to R302.94 crore. Other income for the quarter came in at R169.11 crore, almost similar to R167.5 crore reported last quarter.
“In the year so far, the bank has continued with strong growth momentum at all levels in terms of asset and deposits growth; particularly the savings accounts deposits, as well as profitability despite challenging credit environment,” said Vishwavir Ahuja, MD and CEO.
The private sector lender’s provisions for the quarter stood at around R50 crore, a marginal rise from R43 crore in the previous quarter. Gross non-performing assets, as a percentage of total loans, fell to 1.10% from 1.13% at the end of the June quarter. Net NPA fell 11 basis points to 0.55%.