RBL Bank Q1 results: Net profit rises 43% to Rs 288 crore

Private lender RBL Bank on Saturday reported a 43.2 per cent jump in net profit to Rs 288 crore for the first quarter ended June 2023, helped by lower provisions and higher interest income.

This impressive performance follows a strong showing in the last quarter of the previous financial year (Q4 FY23), where the bank's net profit stood at Rs 271 crore, marking a significant 36.8 per cent increase year-on-year. The bank's Profit After Tax (PAT) also rose by 30 per cent on a quarter-on-quarter basis.

A key driver of RBL Bank's robust Q1 results was the growth in its core income or Net Interest Income (NII). The NII, which is the difference between interest earned and interest paid, rose by 21 per cent year-on-year and 3 per cent quarter-on-quarter to Rs 1,246 crore. This growth in NII was accompanied by a net interest margin of 4.84 per cent for the quarter.

The bank's operating profit grew 22 per cent year-on-year and 9 per cent quarter-on-quarter to Rs 647 crore. The Mumbai-headquartered bank's total revenue increased 18 per cent year-on-year and 2 per cent quarter-on-quarter to Rs 1,932 crore.

The bank's operational update revealed that its gross advances increased by 20 per cent to Rs 74,792 crore in the June quarter, while deposits grew by 8 per cent to Rs 85,638 crore. Furthermore, deposits in RBL Bank's current and savings accounts increased by 12 per cent year-on-year to Rs 31,927 crore. However, the CASA ratio, which indicates the proportion of a bank’s deposits in current and savings accounts to its total deposits, shrank by 10 basis points sequentially to 37.3 per cent.

Despite this slight dip in the CASA ratio, RBL Bank's asset quality remained stable. The bank's gross non-performing assets (NPAs) as a percentage of total loans were estimated to be between 3.2-3.3% for the June quarter, down from 3.7 per cent in the previous three months. The net NPAs remained flat sequentially at 1.1 per cent.

On July 21, RBL Bank closed at Rs 221.70, up 0.93 percent from the previous close. 

R Subramaniakumar, MD&CEO, RBL Bank said, “We have started FY24 with strong operating performance on all parameters. The advances growth was healthy with strong disbursals continuing in retail segment. We have further improved on our granular deposits, in line with our laid out strategy. Our revenue has grown faster than operating expenses driven by optimisation of few cost lines. Owing to this, the Bank saw strong growth in Operating Profits and PAT.”
 

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