RBL Bank tumbles nearly 14% post Q1 nos as lender signals challenges ahead

Shares of RBL Bank tanked as much as 13.75 per cent in the afternoon session on Friday after releasing June quarter results for the financial year 2019-20 (FY20). The lender reported healthy set of numbers for the period under review but said it expects to face some challenges on some of its exposures in the near term. 

Reacting to it, investor sentiment took a hit, thus dragging the stock nearly 14 per cent lower during the trade. 

For the June quarter, RBL Bank posted a 41 per cent year-on-year (YoY) rise in net profit or PAT (profit after tax) at Rs 267.1 crore. Sequentially, the numbers grew 8 per cent. Net interest income (NII) jumped 48 per cent YoY and 11 per cent QoQ to Rs 817.3 crore. Operating profit increased to Rs 618.8 crore, up 43 per cent YoY and 11 per cent QoQ. Net interest income (NIM) improved to 4.31 per cent up from 4.04 per cent in Q1 FY19, it said in its press release. 

“The Bank has had a good quarter of strong performance and has continued to maintain its growth momentum and improvement in operating metrics. However, given the difficult environment we do expect to face some challenges on some of our exposures in the near term. At the same time, given the strong momentum in our businesses, we do expect to maintain a healthy profitable growth over the coming quarters," said Vishwavir Ahuja, MD & CEO at RBL Bank. 

Advances (Net) at 56,836.7 crore and Deposits at 60,810.9 crore both increased up by 35 per cent on YoY basis, the bank said. 

Gross NPA (non-performing assets) stood at 1.38 per cent against 1.40 per cent in the previous quarter (January-March period) while net NPA stood at 0.65 per cent as compared to 0.75 per cent in the March quarter. 

At 02:47 am, the stock was trading 12.50 points lower at Rs 507.35 apiece on the BSE. In comparison, the benchmark S&P BSE Sensex was ruling 506 points or 1.30 per cent down at 38,392 levels.