RBL Bank Ltd, formerly known as Ratnakar Bank, reported a 55% increase in profit for the March quarter on higher interest income.Profit rose to Rs130.13 crore in the three months to March from Rs84.18 crore a year ago.
Net interest income, the difference between interest earned on loans and that paid on deposits, rose 47% from a year ago to Rs352.16 crore. Other income rose 66% to Rs236.55 crore.Net interest margin widened to 3.52% from 3.21% a year ago. Provisions more than doubled to Rs82.10 crore, compared to Rs36.17 crore in the preceding quarter.
Gross non-performing assets (NPAs) as a ratio of gross advances as of the March quarter were at 1.20%, compared to 0.98% as of 31 December. Net NPA ratio at the end of the fourth quarter was 0.64%, slightly up from 0.59% in the third quarter.Capital adequacy ratio on 31 March stood at 13.72% against 12.94% a year ago.
“There was one corporate account in engineering, procurement and construction (EPC) worth Rs65 crore in loan value, for which additional provisions were made based on central bank review. This contributed for 22 basis points increase in the gross NPA,” said Vishwavir Ahuja, managing director and chief executive officer of RBL bank. A basis point is a hundredth of a percentage point. Money at risk in the microfinance portfolio is 2% of a Rs2,150 crore portfolio (direct lending), according to Ahuja.
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