Shares of RBL Bank slumped by 13%, hitting an intra-day low of Rs 176.50 on the NSE today following the announcement of its Q2FY25 results. The bank reported a 24% year-on-year (YoY) decline in profit after tax (PAT) to Rs 223 crore for the quarter ended September 2024.
RBL Bank’s Q2FY25 Performance
Despite the dip in PAT, RBL Bank’s net interest income (NII) grew by 9% YoY, reaching Rs 1,615 crore. The bank’s net interest margins (NIMs) were reported at 5.04% for the quarter. Additionally, RBL Bank saw a 24% YoY growth in its operating profit, which rose to Rs 910 crore.
On a half-yearly basis (H1FY25), the bank’s net profit increased by 2% YoY to Rs 594 crore, with NIMs at 5.35%. The bank’s operating expenses increased by 13% YoY for both the first half of FY25 and Q2FY25, amounting to Rs 3,279 crore and Rs 1,632 crore, respectively.
NPA Improvement
On the asset quality front, RBL Bank showed improvement, with its gross non-performing asset (NPA) ratio declining to 2.88% in Q2FY25, compared to 3.12% in the same quarter last year. The net NPA ratio stood at 0.79%, slightly up from 0.78% in Q2FY24.
CASA and Deposits
RBL Bank’s current account savings account (CASA) grew by 13% YoY to Rs 36,224 crore, and the CASA ratio stood at 33.6%. Total deposits witnessed a 20% YoY rise, amounting to nearly Rs 1.08 lakh crore as of the end of Q2FY25.
Stocks Performance n Last One Year
The shares of RBL Bank have demonstrated negative returns across various time intervals. In the last month, the stock delivered a negative return of 15.21%. Over the past six months, it exhibited a significant decline, with negative returns of 30.10%, indicating a strong downtrend.
Year-to-date figures further emphasize the stock’s bearish trend, recording negative returns of 36.39%. Looking at the broader horizon, the shares have shown consistent weakness, with negative returns of 27.68% over the last year.
(Disclaimer: Views, recommendations, and opinions expressed are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)