Earnings Outlook
RBL Bank's PAT seen up 25%, asset quality stable
This story was originally published at 17:38 IST on 16 July 2024
Register to read our real-time news.Informist, Tuesday, Jul 16, 2024
By Nishat Anjum
MUMBAI – RBL Bank's net profit for the June quarter is expected to rise 25% on an annualised basis to 3.61 bln rupees, with asset quality ratios seen broadly stable, according to estimates by four brokerage firms. On a sequential basis, the bank's bottomline is seen rising only 2%.
For Apr-Jun, the brokerage firms pegged the net profit for the bank in the range of 3.40 bln rupees and 3.82 bln rupees. Motilal Oswal Financial Services Ltd said it expects earnings to moderate in the reporting quarter owing to higher provisions. For Jan-Mar, provisions were 4.14 bln rupees, up 76% on year.
Provisional data released by the bank showed gross advances rose 18% on year and 3% on quarter to 884.55 bln rupees as of June-end. Retail advances rose 31% on year while wholesale advances were up 2%, the bank had said, but did not disclose absolute numbers. Retail advances made up 62% of the total loan book, with wholesale advances making up the remainder.
The lender's total deposits rose 18% on year to 1.01 trln rupees as of Jun 30, but fell 2% from a quarter ago. Current account and savings account deposits rose only 3% on year to 329.96 bln rupees as of Jun 30. The current account and savings account ratio fell to 32.6% from 37.3% a year ago and 35.2% a quarter ago. The bank's liquidity coverage ratio averaged 137% in Apr-Jun, against 129% in the same period a year ago and 140% a quarter ago.
"Sequential loan growth will be in the 4.0?llpark due to idiosyncratic growth trajectory," YES Securities (India) said in a research report. Meanwhile, most brokerage firms expect the private bank's loan growth to remain healthy.
Estimates from the brokerage firms show the lender's net interest income rising 18% on year to 16.79 bln rupees. YES Securities also said that the net interest income growth will be slightly slower than average loan growth due to the rise in the cost of deposits outpacing the yield on advances.
The private lender's net interest margin may take a hit, brokerage firms said. In the previous quarter, the net interest margin was 5.45%, down from 5.62% in Oct-Dec.
The bank will detail its earnings for Apr-Jun on Saturday. Key monitorables would be credit cost and the margin. Today, shares of the company closed 1% lower at 243.85 rupees on the National Stock Exchange.
Following are the Apr-Jun earnings estimates for RBL Bank, in million rupees, based on reports compiled by Informist from four brokerages:
| Brokerage firm | Net interest income | Net profit |
| Emkay Global Financial Services Ltd | 17,116.00 | 3,611.00 |
| Motilal Oswal Financial Services Ltd | 16,600.00 | 3,400.00 |
| Nirmal Bang Equities Pvt Ltd | 16,777.00 | 3,603.00 |
| YES Securities (India) Ltd | 16,652.00 | 3,821.00 |
| Average | 16,786.25 | 3,608.75 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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