RBL Bank Q4 result, profit rises 37%

Private sector lender RBL Bank on Friday

reported a rise of 37% in its net profit at Rs178.12 crore for the quarter ended March 2018.

Its net profit in the corresponding January-March quarter of 2016-17 stood at Rs130.13 crore. Net interest income (NII) in the March quarter increased by 42% to Rs500.46 crore from a year ago, while income from other sources moved up by 32% to Rs311.98 crore, the bank said in a regulatory filing.

Total income increased to Rs1,534.69 crore during the March quarter of 2017-18 from Rs1,222.87 crore in the same period of the previous fiscal. For the entire 2017-18 fiscal, bank’s net profit rose to Rs635.09 crore as against Rs446.05 crore in the preceding year, an increase of 42%.

Its full-year income rose to Rs5,575.76 crore in 2017-18 from Rs4,468.62 crore in preceding year. NII rose by 45% to Rs1,766.29 crore and income from other sources were up 41% to Rs1,068.19 crore during the year.

The net interest margin—a key gauge of profitability—for the year improved to 3.80% from 3.29% in 2016-17. “Bank’s growth in advances portfolio continued to be robust at 37 per cent on year-on-year basis,” said the lender in the filing.

Gross NPA increased to 1.40% of the gross advances as on 31 March 2018, against 1.20% as on 31 March 2017. Net NPA increased to 0.78% from 0.64%. In value terms, gross NPAs were Rs566.73 crore by the end of March 2018 as against Rs356.84 crore a year ago.

Net NPAs stood at Rs312.56 crore, compared to Rs189.94 crore. Net advances as on 31 March 2018 stood at Rs40,267.84 crore as compared to Rs29,449.04 crore in the previous year, a growth of 37%, the bank said.

The consolidated net profit for the year ended 31 March 2018 was Rs631.69 crore, up 41%, over the previous year. “In the year gone by...We have been able to maintain our strong growth momentum across all our various business segments with good asset quality and are tracking well to our Vision 2020 goals. At the same time, we continue to invest in the franchise to enhance our technology and other capabilities, distribution footprint, deepening customer relationships and offering quality products and services,” said Vishwavir Ahuja, managing director and chief executive officer (CEO), RBL Bank.

The board of directors of the bank at its meeting recommended dividend of Rs2.10 per equity share payable subject to shareholders approval, the RBL Bank said.