RBL Bank posts flat profit in second quarter

MUMBAI: RBL Bank has said it posted a flat net profit at Rs 202 crore for the quarter ended September 30, against Rs 31 crore in the year-ago period, growing 6.5 times from the year-ago period.

The Mumbai-headquartered bank has posted 9 per cent growth in its total revenue to Rs 1,648 crore. Net interest income (NII) grew 16 per cent year-on-year to Rs1,064 crore while net interest margin (NIM) was at 4.55 per cent.

Its other income dipped 2 per cent y-o-y to Rs 583 crore while cost to income was at 68.9 per cent.

The bank said its operating profit was Rs 512 crore while current account savings account (CASA) grew 7 per cent to Rs 28,718 crore. The bank’s total deposits grew 5 per cent to Rs 79,404 crore.

Gross non-performing asset (NPA) ratio improved to 3.80 per cent, against 4.08 per cent as on June 30, 2022 while Net NPA ratio was 1.26 per cent, against 1.16 per cent as at June 30, 2022.

The bank said it had 507 bank branches and 1,204 business correspondent branches, of which 289 are banking outlets. RBL Finserve (“RBL Finserve”), a 100 per cent subsidiary of the Bank, accounts for 821 business correspondent branches.

R Subramaniakumar, MD & CEO, RBL Bank, said, “We have completed H1 FY23 on a satisfactory note on all fronts. H1FY23’s profitability over H1FY22 is substantially improved. The advances growth is starting to gain momentum and we expect to see this continue. Granular deposit growth is picking up momentum and asset quality continues to be stable, with GNPA also trending down over earlier periods.”

Going forward, the CEO said the company’s focus would be to consolidate, leverage and optimise existing platform to accelerate profitable growth of the balance sheet and that will continue to focus on key niche areas of cards and microfinance, while accelerating the diversification across more secured retail products by launching them in the next few months.