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RBL Bank Q2 net jumps 34% on higher advances

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE

Press Trust of India  |  Mumbai 

RBL Bank MD & CEO Vishwavir Ahuja
RBL Bank MD & CEO Vishwavir Ahuja

The newly-listed on Wednesday reported a 34 per cent increase in the September quarter net at Rs 89.9 crore on a healthy rise in core interest income, which was fuelled by loan book expanding at a faster clip.

But for a Rs 28.47-crore exceptional hit on account of buying a 9.88 per cent stake in the micro-lender Utkarsh Mirco Finance, the profit growth would have been much higher, the private lender said.

The core net interest income grew 60 per cent during the reporting quarter to Rs 302.94 crore on a 44 per cent rise in advances, while the other income was up 51 per cent to Rs 169.11 crore.

Net interest margin expanded to 3.10 per cent for the first half (April-September) from 2.96 per cent a year ago.

Overall provisions more than doubled to Rs 49.58 crore during the quarter under review from Rs 22.30 crore in the year ago period.

The gross (NPAs) ratio increased to 1.10 per cent in the three-month period from 0.93 per cent at the end of second quarter of 2015-16.

Managing Director and Chief Executive Vishwavir Ahuja told PTI that the faster increase in the income streams helped the bank bring down its cost to income ratio to 54 per cent from over 60 per cent in the year-ago period.

He, however, hinted the lender does not expect such rapid declines going forward and added that it is targeting to get it down to 50 per cent by FY20.

"All the investments which we have been doing over the last few years are now bearing fruit and the ratio will keep going down," Ahuja said, adding the bank will be investing in network expansion and technology solutions on payments side.

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE, whose benchmark Sensex dropped 0.24 per cent.

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RBL Bank Q2 net jumps 34% on higher advances

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE
The newly-listed on Wednesday reported a 34 per cent increase in the September quarter net at Rs 89.9 crore on a healthy rise in core interest income, which was fuelled by loan book expanding at a faster clip.

But for a Rs 28.47-crore exceptional hit on account of buying a 9.88 per cent stake in the micro-lender Utkarsh Mirco Finance, the profit growth would have been much higher, the private lender said.

The core net interest income grew 60 per cent during the reporting quarter to Rs 302.94 crore on a 44 per cent rise in advances, while the other income was up 51 per cent to Rs 169.11 crore.

Net interest margin expanded to 3.10 per cent for the first half (April-September) from 2.96 per cent a year ago.

Overall provisions more than doubled to Rs 49.58 crore during the quarter under review from Rs 22.30 crore in the year ago period.

The gross (NPAs) ratio increased to 1.10 per cent in the three-month period from 0.93 per cent at the end of second quarter of 2015-16.

Managing Director and Chief Executive Vishwavir Ahuja told PTI that the faster increase in the income streams helped the bank bring down its cost to income ratio to 54 per cent from over 60 per cent in the year-ago period.

He, however, hinted the lender does not expect such rapid declines going forward and added that it is targeting to get it down to 50 per cent by FY20.

"All the investments which we have been doing over the last few years are now bearing fruit and the ratio will keep going down," Ahuja said, adding the bank will be investing in network expansion and technology solutions on payments side.

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE, whose benchmark Sensex dropped 0.24 per cent.
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Business Standard
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RBL Bank Q2 net jumps 34% on higher advances

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE

The newly-listed on Wednesday reported a 34 per cent increase in the September quarter net at Rs 89.9 crore on a healthy rise in core interest income, which was fuelled by loan book expanding at a faster clip.

But for a Rs 28.47-crore exceptional hit on account of buying a 9.88 per cent stake in the micro-lender Utkarsh Mirco Finance, the profit growth would have been much higher, the private lender said.

The core net interest income grew 60 per cent during the reporting quarter to Rs 302.94 crore on a 44 per cent rise in advances, while the other income was up 51 per cent to Rs 169.11 crore.

Net interest margin expanded to 3.10 per cent for the first half (April-September) from 2.96 per cent a year ago.

Overall provisions more than doubled to Rs 49.58 crore during the quarter under review from Rs 22.30 crore in the year ago period.

The gross (NPAs) ratio increased to 1.10 per cent in the three-month period from 0.93 per cent at the end of second quarter of 2015-16.

Managing Director and Chief Executive Vishwavir Ahuja told PTI that the faster increase in the income streams helped the bank bring down its cost to income ratio to 54 per cent from over 60 per cent in the year-ago period.

He, however, hinted the lender does not expect such rapid declines going forward and added that it is targeting to get it down to 50 per cent by FY20.

"All the investments which we have been doing over the last few years are now bearing fruit and the ratio will keep going down," Ahuja said, adding the bank will be investing in network expansion and technology solutions on payments side.

The bank scrip closed with a gain of 1.41 per cent at Rs 312.75 a piece on the BSE, whose benchmark Sensex dropped 0.24 per cent.

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Business Standard
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