RBL Bank Q4 net profit declines 53.7%

Private lender RBL Bank on Thursday reported a 53.7 percent year-on-year (YoY) decline in net profit at Rs 114.4 crore for the fourth quarter ended March 31.

In the corresponding quarter last year, the bank posted a net profit of Rs 247 crore. CNBC-TV18 Polls had predicted a net profit of Rs 105.2 crore for the quarter under review.

The bank’s total revenue for the quarter was Rs 1,522 crore, up 33 percent YOY from Rs 1,148 crore, operating profit for the quarter was Rs 765 crore, up 37 percent YOY from Rs 560 crore in Q4FY19. The bank’s cost to income for Q4FY20 at 49.7 percent against 51.2 percent for Q4FY19.

For FY20, total revenue for the quarter was Rs 5,540 crore, up 39 percent YOY from Rs 3,982 crore, the operating profit grew 42 percent YOY to Rs 2,752 crore from Rs 1,940 crore in FY19. The bank’s cost to income for FY20 at 50.3 percent against 51.3 percent for FY19. Net profit for FY20 stood at Rs 506 crore.

The bank’s net interest income (NII) grew 38 percent YOY to Rs 1,021 crore during Q4FY20 from Rs 739 crore in Q4FY19. NII for FY20 grew 43 percent YOY to Rs 3,630 crore from Rs 2,539 crore in FY19. Net interest margin for Q4FY20 was 4.93 percent, NIM for FY20 stood at 4.56 percent.

Non-Interest Income for Q4FY20 grew 22 percent to Rs 501 crore. Core fee income for Q4FY20 grew 21 percent QOQ to Rs 470 crore. Non-Wholesale fees constituted 78 percent of the bank’s total fee income.

For FY20, non-interest income grew 32 percent YOY and stood at Rs 1,910 crore, of which core fee income grew 29 percent YOY to Rs 1,743 crore. Non-Wholesale fees constituted 73 percent of the bank’s total fee income.

The total deposits reduced by 1 percent YOY and stood at Rs 57,812 crore. CASA deposits grew by 17 percent YOY & 2 percent QOQ to Rs 17,116 crore. The share of Retail Term Deposits and CASA in the Total Deposits was 59 percent as of March 31, 2020.

The bank’s advances grew 7 percent YOY to Rs 58,019 crore as on March 31, 2020. Non-Wholesale advances grew 35 percent YOY to Rs 32,525 crore and accounted for 56 percent of the net advances of the bank.

Capital Adequacy Ratio as per BASEL III Capital regulations as at March 31, 2020 was 16.45 percent against 13.46 percent as at March 31, 2019.

The gross NPA ratio was 3.62 percent as at March 31, 2020 as against 3.33 percent as at December 31, 2019. The net NPA ratio was 2.05 percent as at March 31, 2020 as against 2.07 percent as at December 31, 2019. The bank’s provisioning coverage ratio stood at 64.04 percent as at March 31, 2020 as against 58.07 percent as at December 31, 2019.