RBL Bank share price falls over 8% on weak earnings in Q4

RBL Bank share price closed lower today after the lender reported a 54 per cent fall in its net profit for March quarter. Share price of RBL Bank fell up to 8.77% to Rs 117.6 compared to the previous close of Rs 128.90 on BSE. RBL Bank stock has lost 9.69% in the last 2 days. The stock stands higher than 20 day moving averages but lower than 5 day, 50 day, 100 day and 200 day moving averages. The mid cap stock has lost 81.7% in last one year and fallen 65.39% since the beginning of this year.  In the last one month, the stock has declined 1.4%.

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On April 22,2020 the stock hit its 52-week low of Rs 101 on BSE. The stock hit 52 week high of Rs 716.55 on May 28 ,2019.

The lender reported a net profit of Rs 114 crore for the March 2020 quarter on rise in provisioning for bad loans. It logged a net profit of Rs 247 crore in the corresponding quarter of the previous financial year. On sequential basis, the bank posted a net profit of Rs 70 crore in Q3 of last fiscal.

However, total income grew 33 per cent to Rs 1,522 crore inQ4 from Rs 1,148 crore earned in the corresponding period of 2018-19, RBL Bank said. The bank's net interest income jumped 38 per cent to Rs 1,021 crore, compared with Rs 739 crore a year ago.

Net interest margin (NIM), the difference between interest earned and expended, came at a new all-time high of 4.93 per cent in fourth quarter, a rise of 42 basis points as against 4.56 per cent in the year-ago quarter.

For 2019-20, the lender posted a fall of 42 per cent in its net profit to Rs 506 crore as against Rs 867 crore. Income, however, jumped by 39 per cent to Rs 5,540 crore from Rs 3,982 crore.

In third quarter of last fiscal, the bank reported a 69 per cent fall in net profit at Rs 69.9 crore on account of rise in bad loans. The private sector lender had registered a net profit of Rs 225.20 crore in October-December period of the previous fiscal. However, total income increased to Rs 2,64,430 crore as against Rs 1,029.20 crore for the same period year ago, the bank said.

Asset quality of the bank deteriorated with gross non-performing assets (NPAs) rising to 3.33 per cent of gross advances as on December 31, 2019 from 1.38 per cent in the year-ago period.