RBL Bank's net profit more than doubles to Rs 144.2 crore in Q2; NII grows 7.3% YoY

Private sector lender RBL Bank on October 28 said its Q2FY21 standalone net profit more than doubled to Rs 144.2 crore against Rs 54.3 crore posted in Q2FY20.

The number was better-than-expected, as a CNBC-TV18 poll had estimated the number to the tune of Rs 126.2 crore.

Operating profit grew 12 percent YoY to Rs 720 crore.

Total income for the quarter stood at Rs 2,533.47 crore against Rs 2567.68 crore year-on-year (YoY). Total deposits grew 3 percent YoY and 4 percent QoQ to Rs 64,506 crore.

Overall capital adequacy ratio stood at 16.5 percent.

Net interest income grew 7.3 percent YoY to Rs 932.1 crore in Q2FY21 against Rs 868.7 crore in the corresponding quarter of the previous financial year. A CNBC-TV18 poll had estimated NII at Rs 1,024 crore.

NIM remained flat YoY at 4.34 percent. NIM was sequentially down due to proactive reversal of interest income on non-wholesale advances expected to slip by Q3FY21, the bank said.

CASA grew 21 percent YoY and 8 percent QoQ to Rs 20,064 crore. CASA ratio increased to 31.1 percent against 30.1 percent in Q1FY21 (26.5 percent in Q2FY20). The average CASA ratio for Q2FY21 was 28.7 percent, the bank said.

The bank made a provision of Rs 525.6 crore against Rs 500.2 crore QoQ and Rs 540.6 crore YoY.

The bank's net NPA came at Rs 776 crore against Rs 932.7 crore QoQ while gross NPA stood at Rs 1,912 crore against Rs 1,992 crore QoQ.

The bank reported slippages at Rs 145 crore against Rs 5 crore QoQ. Its total assets, as of September quarter, stood at Rs 93,346.52 crore.

"We are seeing growth revival, especially in our retail businesses and being well-positioned on capital and liquidity, we are growing in our chosen segments. As a bank, we have again achieved a robust set of numbers in this quarter and prudently added to our provisioning buffers. Despite the positive signals, we continue to focus on balance-sheet protection, risk mitigation and capital conservation in the near term," said Vishwavir Ahuja, MD & CEO, RBL Bank.