RBL Bank on Saturday posted net profit of Rs 202 crore for the three months ended September 30 as against net profit of Rs 31 crore. The profit grew significantly on account of lower base and a 63% fall in its provisions to Rs 241 crore.
However, the bank’s pre-provisioning operating profit fell 26% y-o-y to Rs 512 crore in Q2FY23 owing to a 2% decline in non-interest income to Rs 583 crore.
Net interest margin (NIM) expanded by 19 basis points (bps) to 4.55% as of September 30. The bank saw 16% y-o-y growth in net interest income (NII) to Rs 1,064 crore in Q2FY23 aided by 12% y-o-y growth in advances to Rs 62,942 crore.
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“The advances growth is starting to gain momentum and we expect to see this continue. Granular deposit growth is picking up momentum and asset quality continues to be stable, with GNPA also trending down over earlier periods,” R Subramaniakumar, managing director and CEO of the bank, said.
“We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more secured retail products by launching them in the next few months,” he added.
The bank’s deposit growth grew by 5% y-o-y, below industry average, to Rs 79,404 crore, with current account, savings account (CASA) ratio at 36.2% as of September 30 as compared to 35.4% a year ago. Capital adequacy ratio, as per Basel III norms, stood at 17.4% as of September 30.
On asset quality front, gross non-performing asset (NPA) stood at 3.80% as on September 30 compared to 4.08% q-o-q and 5.40% y-o-y while net NPA ratio was at 1.26% as against 1.16% a quarter ago and 2.14% y-o-y. Provision coverage ratio, including technical write-offs, was 84.3% as of September 30 as against 85.3% a quarter ago.