The results are in line with brokerages’ expectations. Motilal Oswal had said that RBL Bank is likely to report healthy margins and gradual improvement in asset quality for the quarter that ended March Private sector lender RBL Bank has reported a rise in net profit in the January-March quarter on the back of higher core income, other income, and lower provisions. The bank's net profit for Q4 FY23 was Rs 271 crore, up 36.8 per cent year-on-year. Its net profit was at Rs 198 crore in Q4 FY22. Its PAT was 30 per cent on a quarter-on-quarter basis. The net interest income (NII), or core income, for the bank, rose 7 per cent from a year ago and was at Rs 1,211 crore. NII rose 5 per cent Q-o-Q . The net interest margin for the quarter stood at 5.01 per cent.
RBL MD and CEO R Subramaniakumar said the NII growth has been limited because, in the year-ago period, it had to recognise a Rs 72 crore due on restructured loans in the interest income line on the recommendation of the auditors, which increased the base.
The bank said at the end of March 2023, the total number of customers jumped to 12.91 million, which was 16 per cent more than in FY22. The bank issued 5.5 lakh credit cards -- -taking the total outstanding to 4.4 million cards.
The bank said its board members declared a dividend of Rs 1.50 per equity share having a face value of Rs 10 each (15 per cent) to be payable subject to the approval of the shareholders of the bank at their ensuing Annual General Meeting ("AGM").
The bank said overall, it is well-capitalised with sound liquidity. The bank's overall capital adequacy was 16.9 per cent and the Common Equity Tier 1 ratio was 15.3 per cent. Average Liquidity Coverage Ratio at 126 per cent.
Subramaniakumar said the bank has ‘bounced back’ courtesy of teamwork and management, and the board of the bank has achieved its task of helping the institution deliver to its true potential.
Deposits
The bank's retail deposits rose by 18 per cent YoY and 4 per cent QoQ to Rs 36,319 crore in the March quarter of FY23. The total deposits grew by 7 per cent YoY and 4 per cent QoQ to Rs 84,887 crore.
CASA posted 14 per cent YoY and 6 per cent QoQ growth to Rs 31,717 crore, while the CASA ratio stood at 37.4 per cent in the quarter under review.
Bad loans
In the case of asset quality, gross non-performing assets (GNPA) declined to 3.37 per cent in Q4FY23 compared to 3.61 per cent in Q3 of the similar fiscal. In Q4 of FY22, the gross NPA stood at 4.40 per cent.
Net NPA also dipped to 1.10 per cent in Q4FY23 versus 1.18 per cent in Q3FY23 and 1.34 per cent in Q4FY22.
The results are in line with brokerages’ expectations. Motilal Oswal had said that RBL Bank is likely to report healthy margins and gradual improvement in asset quality for the quarter that ended March.
"Expect business growth to see a slight uptick and the guidance on the outlook will be a key monitorable. Credit costs are likely to remain steady and witness a gradual moderation," the brokerage said.