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Informist, Saturday, Jul 20, 2024

 

--RBL Bank Apr-Jun net profit 3.72 bln rupees 

--Analysts saw RBL Bank Apr-Jun net profit 3.61 bln rupees 

--RBL Bank gross NPA ratio 2.69% as on Jun 30 vs 2.65% qtr ago 

--RBL Bank Apr-Jun total income 43.02 bln rupees 

--RBL Bank net NPA ratio 0.74% as on Jun 30, unch vs qtr ago 

--RBL Bank Apr-Jun net profit 3.72 bln rupees vs 2.88 bln rupees 

--RBL Bank Basel III capital adequacy ratio 15.23% as on Jun 30 

--RBL Bank Apr-Jun total income 43.02 bln rupees vs 35.41 bln rupees 

--RBL Bank: Reversed provision with respect to AIF invest in Apr-Jun 

--RBL Bk: Reversed 904-mln-rupee provision with respect to AIF invest 

--RBL Bank Apr-Jun NII 17 bln rupees, up 20% on year 

--RBL Bank Apr-Jun net interest margin 5.67% vs 5.45% quarter ago 

--RBL Bank net advances 867.04 bln rupees as on Jun 30, up 19% on yr 

--RBL Bank deposits 1.01 trln rupees as on Jun 30, up 18% on yr 

--RBL Bank provision coverage ratio 73.1% as on Jun 30 

--RBL Bank: Retail advances 537.4 bln rupees on Jun 30, up 31% on yr 

--RBL Bank current, savings account ratio 32.6% as on Jun 30 

--RBL Bank Apr-Jun credit cost 59 bps 

--RBL Bank Apr-Jun gross slippages at 0.86%, unch vs qtr ago 

--RBL Bank Apr-Jun net slippages at 0.63% vs 0.56% qtr ago 

--RBL Bank MD: No immediate plan to raise equity capital 

--CONTEXT: RBL Bank MD Subramaniakumar's comments in post-earnings call 

--RBL Bank MD: Remain well capitalised for short, long-term growth 

--RBL Bank: Incremental deposit growth to meet incremental loan growth 

--RBL Bank MD: Secured loans will grow faster than unsecured loans 

--RBL Bank MD: Margins to improve in second half of FY25 

 

NEW DELHI – RBL Bank's net profit for the quarter ended June was higher than expected at 3.72 bln rupees, up 29.0% on year, thanks to a rise in interest income. Analysts had expected the bank to report a net profit of 3.61 bln rupees. On a sequential basis, the bank's net profit rose 5.4%.

 

Interest income rose 22.4% on year to 34.96 bln rupees in Apr-Jun. Total income was up 21.5% at 43.02 bln rupees.

 

Operating expenses rose 12.8 on year to 16.46 bln rupees in Apr-Jun, while interest expended was up 25.3% on year at 17.96 bln rupees. Total expenditure excluding provisions and contingencies increased 19.0% on year to 34.43 bln rupees during the quarter.

 

The gross non-performing asset ratio of the bank was 2.69% as on Jun 30 compared with 2.65% a quarter ago and 3.22% a year ago. The net non-performing ratio as on Jun 30 was 0.74%, unchanged from a quarter ago but lower than the 1.00% a year ago.

 

Net advances grew 19% on year to 867.04 bln rupees as on Jun 30, led by growth in retail loans. Retail advances jumped 31% on year to 537.37 bln rupees as on Jun 30. Wholesale advances, on the other hand, rose just 2% to 329.68 bln rupees as on Jun 30.

 

The bank continues to focus on growing its secured retail assets such as housing loans, which reported a healthy growth in Apr-Jun, Managing Director and Chief Executive Officer R. Subramaniakumar said in a post-earnings media call.

 

Housing loans jumped 52% on year to 66.96 bln rupees as on Jun 30, and rural vehicle finance loans grew 74% on year to 21.59 bln rupees. "The rate of growth of our secured products will be much faster than the rate of growth of our unsecured products," Subramaniakumar said.

 

The bank's deposits rose 18% on year to 1.01 trln rupees as on Jun 30, led by an increase in granular deposits. Granular deposits, or deposits less than 30 mln rupees, grew by 25% to 499.80 bln rupees. Granular deposits accounted for 49.3% of total deposits as of Jun 30, up from 46.8% a year ago.

 

The current and savings account ratio was 32.6% as on Jun 30 compared to 35.2% a quarter ago and 37.3% a year ago. The bank's ability to raise deposit continues to be strong, the managing director said. "Our focus remains to grow granular deposits, as an increasing proposition of the incremental deposits to fund incremental advances growth," Subramaniakumar said.

 

The bank's net interest income for Apr-Jun was up 20% on year at 17.00 bln rupees, and the net interest margin was 5.67%, against 5.45% a quarter ago and 5.53% a year ago. The bank's management said that margins should be "flattish" for another quarter before they improve in the second half of the financial year.

 

The credit cost of the bank was 59 basis points, against 53 bps a quarter ago and 39 bps a year ago.

 

Fresh slippages rose 7.20 bln rupees in Apr-Jun from 6.80 bln rupees a quarter ago and 5.55 bln rupees a year ago. The bank's recoveries were 1.26 bln rupees, as against 1.48 bln rupees a quarter ago and 1.69 bln rupees a year ago. Gross slippages were 0.86% of the total loan book, while net slippages were 0.63%.

 

The provision coverage ratio improved 348 bps on year to 73.13% as on Jun 30. The provision coverage ratio, including technical write-offs, was 90.04%.

 

The Basel III capital adequacy ratio was 15.23% as on Jun 30, compared to 16.18% a quarter ago and 16.39% a year ago. "We remain well capitalised for growth in the short and the medium term and there are no immediate plans for raising equity capital," Subramaniakumar said.

 

The bank reversed provisions of 904 mln rupees with respect to alternate investment funds in Apr-Jun.

 

On Friday, shares of the bank closed 1% lower at 240.35 rupees on the National Stock Exchange.  End

 

Reported by Shubham Rana

Edited by Ashish Shirke

 

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