RBL Bank net profit up 45% to Rs 141 crore in June quarter

Rises from Rs 97 cr in the year-ago quarter, backed by an increase in interest and other income

Private lender, RBL Bank reported a net profit of Rs 141 crore for the June qaurter. This rise of 45 per cent over Rs 97 crore in year ago quarter was backed by increase in both interest and other income.

Net interest income, the difference between interest earned and interest expended, rose by 54 per cent to Rs 378 crore in the April – June quarter as compared to Rs 244 crore in the quarter ending June 30, 2016.  Other income for the quarter was Rs 257 crore as against Rs 167 crore in same period of last year, showing an increase of 53 per cent.

Net Interest Margin (NIM), a key indicator of the bank’s profitability, was 3.54 per cent for the quarter ended June 2017. It showed an increase of 74 basis points against 2.8 per cent for quarter ending June 2016.

  

The bank’s board has approved an issue of 32.6 million equity shares of face value of Rs 10 each on preferential basis, at a price of Rs 515 per share. This additional capital totaling Rs 1,680 crore will help to augment the capital base of the Bank. Capital Adequacy Ratio was 13.06 per cent on June 30, 2017 against 12.01 per cent as on June 30, 2016.

  

The bank's asset quality deteriorated slightly. Gross Non Performing Asset (NPA) ratio was 1.46 per cent for June 2017 quarter as compared to 1.13 per cent in the same quarter of the previous year. Net NPA increased to 0.81 per cent  as on June 30, 2017 against 0.66 per cent as on June 30, 2016. 

Cost to Income ratio for the quarter remains high despite slight improvement to 50.99 per cent in the June quarter as against 55.25 per cent in year-ago quarter.

  

Current Accounts & Savings Accounts (CASA) ratio improved to 22.09 per cent as at June 30, 2017 from 18.47 per cent as at June 30, 2016.

  

Net Advances as on June 2017 were Rs 31,108 crore as compared to Rs 22,265crore as on June 2016, showing a growth of 39.7 per cent. Deposits grew at  37.3 per cent to Rs. 35,428 crore on June 2017  as compared to Rs. 25,8023 crore on June 2016. 

Return on Assets(ROA) and Return on Equity (ROE) saw a slight fall. ROA for the quarter was 1.19 per cent as against 1.02 per cent in same quarter a year ago. ROE for the June quarter was 12.68 per cent as against 12.69 per cent in previous year.

The bank’s stock closed at Rs 538.95, flat over its previous close on BSE.