RBL Bank drops after Q1 FY22 net loss stands at Rs 459 cr

RBL Bank declined 2.26% to Rs 190.05 after the bank's standalone net loss stood at Rs 459.47 crore in Q1 June 2021 (Q1 FY22) as compared to a net profit of Rs 141.22 crore in Q1 June 2020 (Q1 FY21).

Standalone total income rose 4.92% to Rs 2,720.50 crore in Q1 FY22 from Rs 2,592.73 crore in Q1 FY21. Pre-tax loss was at Rs 618.22 crore in Q1 FY22 as against a pre-tax profit of Rs 189.56 crore in Q1 FY21. The Q1 earnings was declared after market hours yesterday, 2 August 2021.

The bank's gross non-performing assets (NPAs) grew 46.14% to Rs 2,911.28 crore as on 30 June 2021 as against Rs 1,992.07 crore as on 30 June 2020. The ratio of gross NPAs to gross advances stood at 4.99% as on 30 June 2021 as against 3.45% as on 30 June 2020. The ratio of net NPAs to net advances stood at 2.01% as on 30 June 2021 as against 1.65% as on 30 June 2020.

Provision and Contingencies expanded 185.04% to Rs 1,425.67 crore in Q1 June 2021 over Rs 500.16 crore in Q1 June 2020. Provision coverage ratio (PCR) stood at 76.3% at 30 June 2021 over 70.5% as on 30 June 2020.

The Net Interest Income (NII) declined 7% to Rs 970 crore as on 30 June 2021 as against Rs 1,041 crore as on 30 June 2020. Net Interest Margin (NIM) was at 4.36% at 30 June 2021 over 4.85% as on 30 June 2020.

Operating profits jumped 17% to Rs 807 crore as on 30 June 2021 as compared to Rs 690 crore as on 30 June 2020. Advances fell marginally to Rs 56,527 crore as on 30 June 2021 from Rs 56,683 crore as on 30 June 2020. Deposits surged 21% to Rs 74,471 crore as on 30 June 2021 over Rs 61,736 crore as on 30 June 2020.

Commenting on the Q1 performance, Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of RBL Bank, said: "While our revenues and operating profits have held up well and continue to grow year on year, the effect of the second wave of the COVID pandemic on our asset quality was rather severe and different from the first wave given the nature of our businesses, despite the planned counter - cyclicality in our business mix. Economic activity and growth revival is now visible, hence we have decided to take a firm view and clear the decks for the future, by taking accelerated/ more than adequate provisions, preparing the bank to return to normalized levels of business, provisioning, growth and profitability."

"Additionally, we have set a clear road map for our Transformation 2.0 journey encompassing a larger digital agenda, expansionofourbranchfootprint,andbuildingoutoursecuredretailassets businessandareconfident that given our business traction and competitive strengths in certain businesses, this will reflect positively in our financial performance going forward," Mr Ahuja added.

RBL Bank, a private sector bank, has added 6 branches during Q1 FY22 taking total number of branches to 435 as at 30 June 2021. In addition, the bank also has 1,422 business correspondent branches, of which 271 are banking outlets. RBL Finserve, a 100% subsidiary of RBL Bank, accounts for 759 business correspondent branches.

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