RBL Bank posts net profit of ₹352.5 crore in Q4

RBL Bank on Saturday, April 27, reported its fourth quarter results. It's net profit came in at Rs.352.5 crore, which was more than estimates.

The lender's net profit in the March quarter was also 30.1% more than the Rs.271.1 crore net profit it reported in the corresponding period in the previous fiscal.

RBL Bank's net interest income (NII) of Rs.1,599.8 crore in the fourth quarter was lower than Street estimates of Rs.1,604.7 crore. However, it was 17.9% higher than the fourth quarter of the previous fiscal's Rs.1,357.3 crore.

The lender's gross net performing assets decreased 11% to Rs.2,271 crore in the fourth quarter of the 2023-2024 fiscal, compared to the previous year's Rs.2,551 crore. RBL Bank's gross NPA % came down to 2.65% from the previous year's 3.12%

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

It's net interest margin (NIM) for the March quarter was 5.45%. In the previous quarter the same was 5.52% and in the fourth quarter in FY23 it was 5.62%.

RBL Bank in a media call stated it expects the first quarter margin for FY25 to be flattish and it expects the NIM to rise by the year-end. The lender added that it will do lateral hiring against deaprtment head resignations that have taken place.

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Police summons MDs of 4 Banks, 11 Bank Employees arrested

A number of bankers have been arrested in recent cyber fraud investigations due to allegations that they were involved in fraudulent operations. The managing directors of Yes Bank, ICICI Bank, RBL Bank, and Kotak Mahindra Bank are among the four private banks that the city police have written to, demonstrating how seriously they regard this issue. The letter's objective is to ask them to come in person the next week to provide an explanation for why no legal action should be taken against them.

Role of Bankers in Cyber Fraud Cases

When authorities discovered that the account holders implicated in illegal activities were unaware that they had opened such accounts, the role of bankers came under investigation. It was found that the bankers had helped cyber criminals open these accounts after more inquiry. The fact that the bankers charged a sizable commission in each instance suggests that they were aware that they were involved in illegal activity.

Victims of Fraudulent Investment and Task-based Schemes

Many people have been duped by schemes that promise large returns on investments or possibilities depending on tasks. In addition to apprehending the cyber criminals, the local police have shown initiative by making the bankers answerable for their involvement in these cyber fraud cases. As a result, the city police are the only law enforcement agency in the nation authorized to detain bankers in conjunction with other suspects in similar circumstances.

Read More - सबसे बड़ा बैंकिंग घोटाला: भारत देश में अब तक का सबसे बड़ा बैंक फ्रॉड, करोडो का बैंको को लगाया चुना

Exposing the Role of Bankers

During the investigation, it was discovered that the employees of Kotak Mahindra Bank’s MG Road branch were involved in fraudulent activities. They were subsequently arrested, and during the interrogation, they confessed to the involvement of several other bankers in similar fraudulent acts. Recognizing that bank accounts are a crucial component in cyber frauds, the police decided to investigate the criminal activities of bankers in such cases.

Violations of KYC Norms

In light of the recent arrests, the city police have written to the managing directors of Kotak Mahindra Bank, ICICI Bank, RBL Bank, and Yes Bank. The purpose of this letter is to request their personal appearance and an explanation as to why legal action should not be initiated against them for clear violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) norms.

Bankers’ Methods and Tactics

During the ongoing investigations, the police have found that the bankers accused of aiding cyber criminals opened bank accounts using identification and address proofs collected from factory workers and laborers. They even gained access to the bank accounts of daily-wage workers by offering them money. Additionally, the police noticed the use of fake IDs, address proofs, and forged signatures to open bank accounts, further exposing the deceptive tactics used by these individuals.

Read More - Suspicious transactions detected in this bank,three staffs arrested

Bank Responsibilities and Accountability

The Deputy Commissioner of Police(Cyber Crime), Siddhant Jain, emphasized that bank managements have a responsibility to safeguard their clients’ money and protect it from cyber criminals. If bank employees are involved in criminal activities and aiding fraudsters, it is the duty of the bank managements to explain why action should not be taken against them. The police are determined to hold the responsible parties accountable for their actions in order to protect the public and maintain the integrity of the banking system.

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RBL Bank back in black as lender posts Rs 201 cr profit in Q1

 

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal.

RBL Bank bounced back in profit as the lender posted a consolidated net profit of Rs 201 crore for the quarter ended 30 June, 2022. The bank had posted a net loss of Rs 459 crore in the year-ago period.

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal. Its net interest margin (NIM) stood at 4.36 per cent.

The bank's interest earned rose slightly over 3 per cent to Rs 2,089 crore in Q1FY23 n comparison with Rs 2,026 crore in Q1FY22.

Its June quarter provisions and contingencies came in at Rs 253 crore as against Rs 1,384 crore in the same quarter last fiscal.

Furthermore, on the asset quality front, RBL Bank's gross NPA stood at 4.08 per cent in this quarter as against 4.4 per cent in the previous quarter, while net NPA stood at 1.16 per cent versus 1.34 per cent in the previous quarter.

As of 30th June 2022, the Bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited, a wholly-owned subsidiary of the bank, accounts for 789 business correspondent branches, the lender stated.

Commenting on the performance, R Subramaniakumar, MD&CEO, RBL Bank said “We have started the new financial year with a satisfactory performance on all fronts. The Bank completed the issuance of $100 million Tier 2 Notes in this quarter improving its capital adequacy further. Our focus would be to consolidate, leverage and optimize our existing platform so as to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more retail products”.

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RBL Bank reports net profit of Rs 197.8 crore in Q4 as asset quality improves

 

Private sector lender RBL Bank on Thursday reported a net profit of Rs 197.8 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter last year, the bank posted a net profit of Rs 75.3 crore. CNBC-TV18 Polls had predicted a profit of Rs 218.1 crore for the quarter under review. 

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 24.9 percent YoY to Rs 1,131.4 crore against Rs 906 crore in the same period previous fiscal.

Gross NPA stood at 4.40 percent in the March quarter against 4.84 percent in the December quarter. Net NPA came at 1.34 percent against 1.95 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 2,728.4 crore against Rs 2,901.9 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 806.6 crore against Rs 1,075.5 crore (QoQ).

During the quarter, the bank earned an operating profit of Rs 657 crore and for FY22, it was Rs 2,745 crore. The Provision Coverage Ratio improved 750bps sequentially to 70.4 percent against 62.9 percent as of December 31, 2021.

Commenting on the performance, Rajeev Ahuja, MD and CEO (interim), RBL Bank, said, \"This quarter has been one of stable business performance and we continued to improve in both profitability and asset quality

"We are entering the new fiscal with a relatively clean slate on asset quality, remain well capitalised and our business operating rhythm holds us in good stead to grow meaningfully in our chosen segments with improved profitability metrics,\" he added.

As of March 31, 2022, the bank has 502 bank branches and 1,418 business correspondent branches, of which 289 are banking outlets

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RBL Bank says banking operation may be hit due to 2-day strike

RBL Bank today said some of its branches would also be impacted by the strike call given by bank unions on March 28, 2022, and March 29, 2022. “The workmen unions represented by the All India Bank Officers’ Association (AIBOA), Bank Employees Federation of India (BEFI) and All India Bank Employees Association (AIBEA) had served the notice of strike declaring that their members propose to go on strike on March 28, 2022, and March 29, 2022, for the demands stated therein," the bank said in a statement.

The Ratnakar Bank Officers’ Organisation and Ratnakar Bank Employee Union of our Bank are affiliated with the AIBOA and AIBEA, respectively. RBL Bank has said the employees of the bank associated with the aforesaid unions may participate in the strike.

Private sector RBL Bank this week said the Reserve Bank has granted an extension of three months to its interim MD and CEO Rajeev Ahuja. "We wish to further inform that on request of the Bank, RBI vide its letter dated March 17, 2022, has approved the extension of the term of Rajeev Ahuja, interim Managing Director & CEO of the Bank for a further period of three months with effect from March 25, 2022, or till the appointment of a regular MD & CEO, whichever is earlier," RBL Bank said in a regulatory filing.

On December 30, 2021, the private sector lender had said the Reserve Bank had approved the appointment of Ahuja as interim managing director (MD) and CEO for a period of three months with effect from December 25, 2021, or till the appointment of a regular MD and CEO. The RBL Bank stock closed at ₹136.45, up ₹3.1 or 2.32 per cent, on the National Stock Exchange on Friday.

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RBL Bank Q3 Results: Lender reports 6% rise in net profit on growth in NII

 

RBL Bank on Thursday reported a 6 per cent rise in net profit led by growth in net interest income (NII) despite a rise in expenses as the bank increased its branch presence during the quarter.

Net profit rose to Rs 156 crore in the quarter ended December 2021 from Rs 147 crore a year earlier mainly due to a 11 per cent growth in NII to Rs 1,010 crore from Rs 908 crore a year earlier.

Total operating expenses rose 46 per cent to Rs 1,000 crore in December 2021 from Rs 683 crore a year earlier reflecting the increase in operation, technology, people and compliance costs as the bank added 90 branches between September 2021 and January 2022 to take total branches beyond 500.

A 16 per cent rise in wholesale loans made up for the 6 per cent fall in retail loans as the bank consciously went slow on micro finance and small business loans due to the uncertainty caused by the rise in Covid infections during the quarter.

CEO Rajeev Ahuja said he expects retail loans to pick up next fiscal in line with the economic recovery and as the bank uses its expanded presence to ramp up loans including in micro finance.

The bank's advances increased 3 per cent year on year to Rs 58,141 crore. Retail loans make up 53 per cent of the bank's loan book and Ahuja expects it to increase to more than 60 per cent in the next three years.

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RBL Bank reports 34% drop in Q4 net profit as provisions rise

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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RBL Bank Q3 results: Net profit rises 110%, asset quality improves

Private sector RBL Bank on Thursday posted a 110% rise in its net profit year-on-year at Rs.147.1 crore in the quarter ended December 31, 2020. In the corresponding quarter, the Mumbai-headquartered bank posted a net profit of Rs.6,995 crore.

Its total revenue grew by 6% year-on-year to Rs.1,488 crore as against Rs.1,388 crore a year ago, RBL Bank said in a regulatory filing. The net interest income fell 2% to Rs.932 crore.

The bank's gross non-performing assets fell to 1.84% of the gross advances at the December quarter, compared to 3.33% in the corresponding quarter last year. Net NPAs also fell 0.71% as against 2.07% in the year-ago period.

The December-quarter provisions and contingencies stood at Rs.610 crore versus 623 crore year ago.

RBL also said that its Q3 asset quality improved on a sequential basis in absolute as well as percentage terms.

"COVID-19 is a global pandemic, which continues to spread across the globe and has contributed to increase in volatility in financial markets and an unprecedented level of disruption on socio-economic activities. The extent to which the COVID-19 pandemic will impact the Bank's operations and asset quality will depend on future developments, which are highly uncertain," the private lender said in a regulatory filing.

During the quarter and nine months ended December 31, 2020, the bank has raised additional capital of Rs.156,600 lakh on preferential basis through an issuance of 88,474,577 fresh equity share of face value of Rs.10 each at a price of Rs.177.

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