RBL Bank Q4 net profit jumps 39% on better NII, other income

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Published: April 19, 2019 2:00:09 AM

The lender’s asset quality, however, remained unchanged quarter-on-quarter with gross non-performing assets (NPAs) of 1.38%. The provisioning coverage ratio (PCR) stood at 65.3%, while the net NPA at 0.69% was 3 bps lower than in Q3FY19.

RBL Bank Q4 net profit jumps 39% on better NII, other incomeRBL Bank Q4 net profit jumps 39% on better NII, other income

Private-sector lender RBL Bank on Thursday reported a 38.8% year-on-year increase in net profit to Rs 247 crore in Q4FY19 due to better net interest income (NII) and other income.

However, provisions grew 77% y-o-y to Rs 200 crore on account of credit card write-offs made by the bank. “The majority of our retail business growth comes from our credit card business and whenever there is a default we make a 100% provision,” Vishwavir Ahuja, MD, RBL Bank, said.

The lender’s asset quality, however, remained unchanged quarter-on-quarter with gross non-performing assets (NPAs) of 1.38%. The provisioning coverage ratio (PCR) stood at 65.3%, while the net NPA at 0.69% was 3 bps lower than in Q3FY19.

RBL’s profits were led by a healthy increase in the interest income which grew 47.6% y-o-y to `738 crore and a 31% y-o-y increase in non-interest income, driven by an increase in the core-fee income from the growing credit card customer base, the management said. Core fee income grew 43% y-o-y to `409 crore, accounting for 93% of the non-interest income.

Pre-provisioning profit grew 46% y-o-y to `560 crore and net interest margins were at 4.2%, a 25 bps increase over the previous year and is at an all-time high.

Total advances as at the end of Q4FY19 stood at `54,308 crore, up 35% y-o-y and grew 9% q-o-q from `49,892 crore.

The bank’s capital adequacy ratio (CAR) stood at 13.46% under Basel 3 against 15.33% in the year-ago period. The minimum CAR under Basel 3 norms stands at 8%.

Total deposits rose 33% y-o-y to `58,394 crore. The current accounts savings accounts (CASA) deposits grew by 37% y-o-y, while the CASA ratio improved marginally to 24.98% in Q4FY19 against 24.32% in the previous quarter.

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