RBL Bank gains over 5% post Q3 results

The stock rallied 7% to Rs 393 after the bank reported 59% increase in profit in December quarter

RBL Bank has rallied 7% to Rs 393 on the BSE in early morning trade after the bank reported a 59% year on year (YoY) increase rise in net profit at Rs 129 crore for the third quarter ended December 2016 (Q3FY17) on back of higher interest as well as non-interest income. The private sector lender had reported profit of Rs 81 crore in the same period last fiscal year.

Net interest income, the difference between interest earned and interest expended, increased by 45% YoY at Rs 322 crore, while other income rose 66% to Rs 182 crore over the previous year quarter.

Net interest margin (NIM) or the difference between the yield earned on loans and that paid for deposits improved 14 basis points to 3.38% in December 2016 compared to 3.24% a year earlier.

The bank’s asset quality also remained stable with gross non-performing assets NPA) at 1.06% in Q3FY17 against 1.08% in Q3FY16, while net NPA stood at 0.52% compared to 0.69% a year earlier.

At 11:50 am; the stock was up 6% at Rs 391 on the BSE as compared to 0.28% rise in the S&P BSE Sensex. A combined 3.69 million shares changed hands on the counter on the BSE and NSE.