The net profit of RBL Bank for the December quarter (Q3FY21) more than doubled on a year-on-year (y-o-y) basis to Rs 147 crore. The push in the bottom line came from other earnings and enhanced asset top quality.
Other earnings surged 19% y-o-y and 27% quarter on quarter (q-o-q) to Rs 580 crore. RBL Bank stated about 60% of other earnings came from the credit card small business.
The operating profit grew 10% y-o-y and 11% q-o-q to Rs 805 crore. The net interest earnings, nonetheless, declined 2% y-o-y and 3% q-o-q to Rs 908 crore. Similarly, net interest margins declined 38 basis points (bps) y-o-y and 15 bps q-o-q to 4.19%. The core charge earnings showed a 37% q-o-q and 5% y-o-y development to Rs 497 crore.
Vishwavir Ahuja, managing director (MD) and chief executive officer (CEO), stated: “We continue to grow granular deposits and reducing our funding and operating costs this financial year.” Ahuja added that the bank is monitoring the recovery in the economy and stay cautiously optimistic.
The asset top quality enhanced in Q3FY21. Gross NPAs enhanced 150 basis points (bps) to 1.84%, compared with 3.34% in the earlier quarter. Net NPAs came down 67 bps to .71% from 1.38% in the September quarter. The lender has not classified any NPAs given that August 31, 2020 due to the interim order of Supreme Court. “Had the bank classified borrowers more than 90 days overdue on December 31, 2020 as NPA, GNPA would be 4.57% and net NPA would be 2.37%,” Ahuja stated.
The provisioning coverage ratio stood at 86.4% in the course of the December quarter, compared with 74.8% in the earlier quarter. Provisions surged 16% q-o-q, but declined 4% y-o-y to Rs 610 crore. Deposits rose 4% sequentially and 7% y-o-y to Rs 67,184 crore. The present account savings account (CASA) ratio stood at 31.1%, specifically at the exact same level in the course of Q2FY21.
Advances in the course of the quarter beneath assessment came down 5% y-o-y, but remained flat sequentially at Rs 56,444 crore. Retail advances, nonetheless, saw a 16% y-o-y and 2% q-o-q development to Rs 32,938 crore. Operating expenditures came down 1% y-o-y to Rs 683 crore.
The capital adequacy of the lender stood at 17.9% at the finish of December 2020.