RBL Bank was down 3.87% to Rs 481 at 14:40 IST on the BSE, extending Friday's losses triggered by the company's Q1 result.
Meanwhile, the S&P BSE Sensex was down by 349.45 points or 0.87% to 38,559.34.
On the BSE, 1.57 lakh shares were traded in the counter so far compared with average daily volumes of 34000 shares in the past two weeks. The stock has hit a 52-week high and intraday high of Rs 2369.5 and an intraday low of Rs 2184. The stock hit a 52-week low of Rs 1248.3 on 21 September 2018.
The bank during market hours on Friday announced that its net profit increased 40.5% to Rs 267.05 crore on a 48.1% rise in total income to Rs 2,503.88 crore in Q1 June 2019 over Q1 June 2018.
Net Interest Income (NII) rose 48% to Rs 817.30 crore in Q1 June 2019 over Q1 June 2018. Current Accounts & Savings Accounts (CASA) ratio improved to 25.83% as at 30 June 2019 from 24.42% as at 30 June 2018.
Gross non-performing assets (NPAs) stood at Rs 789.21 crore as on 30 June 2019 as against Rs 754.62 crore as on 31 March 2019 and Rs 595.94 crore as on 30 June 2018. The ratio of gross NPAs to gross advances stood at 1.38% as on 30 June 2019 as against 1.38% as on 31 March 2019 and 1.40% as on 30 June 2018. The ratio of net NPAs to net advances stood at 0.65% as on 30 June 2019 as against 0.69% as on 31 March 2019 and 0.75% as on 30 June 2018.
The bank's provisions and contingencies jumped 51.89% to Rs 213.18 crore in Q1 June 2019 over Q1 June 2018. Provision coverage ratio of the bank was at 69.13% as on 31 March 2019.
Following the results, RBL Bank recorded its biggest drop since listing on bourses on 31 August 2018. The stock dropped 13.71% to end at Rs 500.35 on Friday, 19 July 2019.
Shares of RBL Bank declined 17.05% in two trading sessions to its current market price of Rs 481, from close of Rs 579.85 on 18 July 2019.
Commenting on the performance Vishwavir Ahuja, MD & CEO, RBL Bank said "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."
A domestic brokerage house maintained its 'sell' call on RBL Bank and slashed its target price to Rs 393 from Rs 426 earlier. A foreign brokerage maintained its 'neutral' call on RBL Bank but slashed its target price to Rs 550 from 725 earlier.
RBL Bank offers specialized services under six business verticals namely: corporate & institutional banking, commercial banking, branch & business banking, retail assets, development banking and financial inclusion, treasury and financial markets operations.
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