Private sector lender RBL Bank Ltd on Tuesday reported a net profit of ₹75.3 crore for the three months to March, down 34% from the same period last year owing to lower net interest income and higher provisions.
Its profits were lower than ₹102 crore estimated by a Bloomberg poll of seven analysts. The bank’s total provisions stood at ₹766 crore in Q4 FY21, up 27.5% from the same period last year.
The bank’s net interest margin (NIM), a key measure of profitability, stood at 4.17% in the March quarter, down 2 basis points (bps) sequentially. Its net interest income (NII) or the difference between interest earned and expended declined 11% y-o-y to ₹906 crore in Q4 FY21. The bank said there was an interest reversal of ₹85 crore in Q4 and a similar quantum in Q3 as well. That apart, Q4 also saw an additional burden of ₹13 crore for compound interest waiver for the six-month moratorium period.
As a percentage of total loans, gross non-performing assets (NPAs) stood at 4.34%, compared to 1.84% in the previous quarter. Its net NPAs were at 2.12% in the March quarter, compared to 0.71% in the previous quarter.
“We are confident of managing future asset quality outcome at prudential level. We therefore are well positioned for decent growth in FY22 and beyond," said Vishwavir Ahuja, chief executive, RBL Bank.
Ahuja said that having recognized and adequately provide for the stress emanating from identified pool of corporate accounts in FY20, the slippages during FY21, were primarily, almost 80%, from the retail segment owing to the impact of covid-19.
RBL Bank’s total deposits rose 26% y-o-y to ₹73,121 crore in Q4 FY21. Its current and savings account (Casa) deposits grew 36% y-o-y and ₹23,264 crore in the March quarter. Its net advances stood at ₹58,623 crore as on 31 March 2021, up 1% y-o-y. Retail loans witnessed a growth of 13% in Q4 FY21 against the same period last year.
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