You are here: Home » Finance » News » Banks
Business Standard

RBL Bank Q2 profit up by 36% to Rs 2.04 bn, interest income sees 41% hike

Provisions and contingencies surged almost double to Rs 1.4 billion in the quarter against Rs 748.9 million a year ago

Nikhat Hetavkar  |  Mumbai 

Vishwavir Ahuja, MD and CEO, RBL Bank at a press conference in Mumbai (Pic: Suryakant Niwate)
Vishwavir Ahuja, MD and CEO, RBL Bank (Photo: Suryakant Niwate)

Private lender posted a 36 per cent rise in for the September quarter, on the back of healthy growth in and other income.

for the quarter stood at Rs 2.04 billion against Rs 1.5 billion a year ago.

Net (NII) rose 41 per cent to Rs 5.93 billion in September 2018 against Rs 4.2 billion in the year-ago quarter. Other income rose 38 per cent to Rs 3.33 billion for the quarter ended September.

The bank’s improved. The gross non-performing asset (GNPA) ratio for the quarter stood at 1.4 per cent, lower than 1.44 per cent in the year-ago quarter and stable against the previous quarter’s ratio of 1.4 per cent.

Provisions and contingencies surged almost double to Rs 1.4 billion in the quarter against Rs 748.9 million a year ago. However, it was marginally lower than the previous quarter’s provision.

The bank’s (PCR) improved both sequentially and annually. The PCR stood at 61.45 per cent as on September 2018, against 60.41 in previous June quarter and 58.27 per cent in year-ago September quarter.

The bank also said that it had reviewed its non-banking financial company (NBFC) portfolio and found no reason for concern since their asset-liability book was well balanced. He said that a similar exercise will be carried out by other and the pace of lending of NBFCs will moderate and prices will rationalize.

Net Interest Margin (NIM) stood at 4.08 per cent in September 2018 as against 3.74 per cent in the corresponding period of the previous year.

Deposits as of September 30, 2018 were at Rs 478 billion as compared to Rs 365 billion in the corresponding period of the previous year, up by 31 per cent. The bank said that this deposit growth was driven by a strong growth in CASA (Current Accounts-Savings Accounts) deposits.

The bank’s improved to 24.51 per cent against 23.67 per cent in past year’s September quarter.

The bank’s exposure to debt-ridden IL&FS is a “low two digit number” and is backed by fixed deposit in addition to a small derivatives contract, said the bank’s MD & CEO Vishwavir Ahuja.

While the bank has no plans on buying out portfolio, Ahuja said that the bank is confident in its portfolio and sees no reason for concern.

Advances stood at Rs 45.87 billion in September 2018, compared to Rs 33.57 billion in September 2017, a growth of 37 per cent.

The bank’s stock closed at Rs 464.9 on BSE, down by one per cent from the previous close.

First Published: Tue, October 23 2018. 16:57 IST
RECOMMENDED FOR YOU