RBL Bank sees 6% rise in Q3 net as provisions decline
Premium- Its operating expenses stood at Rs1,000 crore, up 46% y-o-y, leading to a fall in operating profit in the Dec quarter to Rs631 crore, from Rs801 crore in the comparable quarter last year
MUMBAI : Private sector lender RBL Bank Ltd on Thursday reported a 6% year-on-year (y-o-y) rise in net profit for the December quarter, at ₹156 crore on the back of lower provisions.
The bank’s provisions stood at ₹424 crore in Q3 FY22, down 30% from the same period last year. Its operating expenses stood at ₹1,000 crore, up 46% y-o-y, leading to a fall in operating profit in the December quarter to ₹631 crore, from ₹801 crore in the comparable quarter last year.
The bank’s net interest margin (NIM), a key measure of profitability, stood at 4.34% in the December quarter, up 28 basis points (bps) sequentially. Its net interest income (NII) -- the difference between interest earned and expended -- rose 11% y-o-y to ₹1,010 crore in Q3 FY22.
In December, the Reserve Bank of India (RBI) appointed chief general manager Yogesh Dayal on its board as an additional director, and that CEO Vishwavir Ahuja went on immediate leave. Rajeev Ahuja, interim chief executive of RBL Bank had then said that the management has the complete support of RBI and the appointment of a central bank executive on its board has nothing to do with the lender’s financials.
“While there were some challenges on the deposit front in the last week of December, we have rapidly seen stability return and now are in fact tracking deposit accretion at higher than December levels," Ahuja said on Thursday.
The bank, Ahuja said, continues to remain well-capitalized with sufficient liquidity buffers.
As a percentage of total loans, gross non-performing assets (NPAs) stood at 4.84%, compared to 5.4% in the previous quarter. Its net NPAs were at 1.85% in the December quarter, compared to 2.14% in the previous quarter.
“On the business front, Q3 has been far better, given the improving activity in the environment, post the severe second wave we saw in Q1 and its spillover impact in Q2. I’d like to characterize Q3 as a turnaround quarter for RBL Bank as advances momentum is now firmly on a positive trajectory. Asset quality position, which got impacted because of the second wave of covid-19, continues to improve," said Ahuja.
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RBL Bank’s total deposits rose 10% y-o-y to ₹73,639 crore in Q3 FY22. Its current and savings account (Casa) deposits grew 21% y-o-y to ₹25,318 crore in the December quarter. Its net advances stood at ₹58,141 crore as on 31 December 2021, up 3% y-o-y, led by a 16% y-o-y rise in wholesale advances. Retail loan book witnessed a contraction of 6% in Q3 FY22 against the same period last year.
Asked for updates on the appointment of a new chief executive, Ahuja said he is no position to comment.
“All I can say with a lot of confidence that this being treated expeditiously by the board. I cannot make any comment on the timeline. There is a very specific mandate with the screening committee. There is an external member, consultant, which have been announced. All of them are doing their job. All of them are highly capable. We are also very keen to have this matter behind all of us and the bank," he added.
Shares of RBL Bank on BSE closed at ₹153.25 on Thursday, up 6.42% from its previous close.
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