 "RBL bank")
Private sector lender RBL Bank on Friday recorded a modest growth of 11.5 per cent year-on-year (Y-o-Y) in net profit to Rs 233.09 crore in the third quarter of FY24 as compared to Rs 208.97 crore from the year-ago period, due to provisioning towards Alternate Investment Fund (AIF) investment despite healthy growth in core income.
The Net Interest Income (NII) of the lender rose by 21 per cent Y-o-Y to Rs 1,546 crore as compared to Rs 1,475 crore. Meanwhile, other income rose by 26 per cent Y-o-Y to Rs 778 crore.
RBL Bank has made a provision of Rs 115 crore towards AIF, following the Reserve Bank of India’s norms.
The Net Interest Margin (NIM) of the lender increased to 5.52 per cent from 5.27 per cent on a year-on-year basis.
On the asset quality front, the Gross Non-Performing Assets (GNPA) was flat at 3.12 per cent sequentially. Meanwhile, the Net NPA of the lender inched down to 0.80 per cent from 0.78 per cent.
Also Read
The cost-to-income ratio of the bank stood at 67.1 per cent in Q3 FY24, 300 basis points down from 70.1 per cent in Q3 FY23, though increasing sequentially from 66.5 per cent in Q2 on account of business acquisition cost, marketing spending on products, and expansion of teams.
The capital adequacy ratio of the lender stood at 16.42 per cent as compared to 17.07 per cent in Q2 FY24 following an increase in risk weights for unsecured loans and loans to NBFCs.
The advances of RBL Bank grew by 20 per cent Y-o-Y to Rs 79,949 crore from Rs 66,684 crore, and deposits were up by 13 per cent to Rs 92,746 crore from Rs 81,746 crore.
Going forward, the bank expects the retail segment to drive their credit expansion and the granular deposit growth to outpace overall deposit growth.
“Our focus remains on scaling up the new retail asset products, continue to improve our retail liability franchise, platformise products and services for our customers, have a customer-first approach, and most importantly, keep the customer service at the heart of everything we do,” R Subramaniakumar, Managing Director and Chief Executive Officer, RBL Bank said.
