RBL bank Q3 net profit dips 69%

Private sector lender RBL Bank Ltd on Wednesday reported a 69% on a year-on-year (y-o-y) decline in its net profit to 70 crore for the three months ended December, largely because of a surge in provisions.

The bank’s total provisions almost quadrupled y-o-y to ₹638 crore in Q3 FY20. Sequentially, provisions rose 20% from ₹533 crore in the September quarter of the current fiscal.

Net interest income – difference between interest earned and interest expended – stood at ₹923 crore, up 41% from the same period last year. The bank’s net interest margin, a key measure of profitability, was at 4.57% in Q3, up 45 basis points (bps) y-o-y.

Vishwavir Ahuja, chief executive, RBL Bank Ltd, in a statement, said, “challenges in a few corporate accounts and related provisioning requirements have impacted the bottomlime for the quarter".

The bank’s asset quality deteriorated in the December quarter, with gross bad loans as a percentage of total loans moving up 195 bps y-o-y to 3.33%. On an absolute basis, gross non-performing assets (NPAs) almost trebled y-o-y to ₹2,010 crore. The bank’s net NPA ratio was up 135 bps y-o-y.

“We are digesting this short-term pain and are looking to put this behind us over the next few months," said Ahuja.

In an interview to Mint on 17 January, Ahuja had said that despite not having exposure in some well-known cases of bad debt, the bank still faced trouble in three to four accounts. “We were not in Infrastructure Leasing & Financial Services (IL&FS), DHFL, Essar, Cox and Kings, CG Power, or Jet Airways and many others. However, we still got caught in 3-4 cases, which were all double AA companies," Ahuja had said.

Meanwhile, RBL Bank witnessed a net credit growth of 20% y-o-y to ₹59,635 crore. Its total deposits grew 21% y-o-y to ₹62,907 crore at the end of the December quarter and the current and saving accounts (CASA) ratio rose to 26.79%, up 222 bps.

As of 31 December, 2019, the bank’s capital adequacy under Basel III stood at 15.66%. In the quarter under review, RBL Bank raised equity capital of ₹2,701 crore.

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RBL Bank Q2 profit falls 73%

Private sector lender RBL Bank's July-September quarter profit fell sharply by 73.4 percent year-on-year due to a sharp spike in provisions, and asset quality also deteriorated sequentially.

Profit during the quarter declined to Rs 54.31 crore, against Rs 204.54 crore reported in the year-ago period. Other income (up 32.5 percent) and pre-provision operating profit (up 41.6 percent) continued to support profitability in Q2.

The lender had highlighted a few months ago, given the difficult corporate credit environment it had faced challenges in a few corporate accounts.

"As a matter of prudence, we have taken higher than required provisions on these accounts which have impacted our bottomline," Vishwavir Ahuja, MD & CEO, RBL Bank said.

The bank expects to return to normalised earnings trajectory by end of this fiscal, he added.

But net interest income remained strong at Rs 868.69 crore for the quarter ended September 2019, rising 46.5 percent compared to year-ago.

Advances grew by 27 percent year-on-year and deposits growth stood at 31 percent in Q2 with CASA ratio improving to 26.45 percent as of September 2019 from 24.51 percent in the same period last year.

Asset quality deteriorated sharply during the quarter with gross non-performing assets (NPA) as a percentage of gross advances rising 122bps sequentially to 2.6 percent and net NPA climbing 91bps QoQ to 1.56 percent in Q2.

The bank expects stress of Rs 1,800 crore in books, including from 4 groups. Approximately Rs 800 crore of Rs 1,800 crore has been recognised as NPA in Q2," it said.

Provisions and contingencies increased significantly to Rs 533.3 crore in the quarter ended September 2019, against Rs 139.68 crore in the same period last year and Rs 213.18 crore in June quarter this year.

"Total outstanding of real estate approximately Rs 2,500 crore is fully secured. We don't have real estate account case in SMA 1 or SMA 2 in this portfolio," RBL said.

Total outstanding of the construction sector is approximately Rs 4,000 crore and outstanding from housing finance companies is approximately Rs 900 crore, with an average ticket size of Rs 115 crore, it added.

Profit missed analyst expectations due to higher provisions, but net interest income beat estimates. Profit was estimated at Rs 186 crore and net interest income at Rs 820.4 crore for the quarter, according to a poll of analysts conducted by CNBC-TV18.

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RBL Bank Q1 net profit rises 40.5%

RBL Bank on Friday said its first-quarter net profit rose 40.52% on the back of higher net interest income and other income.

The bank posted a net profit of Rs.267.05 crore for the three months ended 30 June, against Rs.190.04 crore in the year-ago period. Profit was higher than Rs.262 crore estimated by a Bloomberg poll of 12 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 47.88% to Rs.817.32 crore during the quarter, from Rs.552.7 crore in the corresponding period last year.

Other income, which includes core fee income, rose 47.62% to Rs.481.21 crore in the three months from Rs.325.97 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 1.38% in the June quarter, and 1.40% in the year-ago period.

Provisions during the quarter increased 51.89% to Rs.213.18 crore, from Rs.140.35 crore in the year-ago quarter. During the January-March period, the bank had set aside Rs.199.97 crore in provisions.

Post-provision, the net NPA ratio was at 0.65%, against 0.69% in the March quarter, and 0.75% in the year-ago period.

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RBL Bank Q4 net surges 39%

RBL Bank Ltd on Thursday reported a 38.77% increase in its March quarter net profit due to higher net interest and other income.

Net profit for the quarter stood at Rs.247.18 crore, up 38.77% from Rs.178.12 crore a year ago. Analysts expected the bank to post a profit of Rs.246 crore, according to a Bloomberg poll.

Net interest income (NII), or the core income a bank earns by giving loans, was up 47.61% to Rs.738.72 crore versus Rs.500.46 crore last year. Other income was at Rs.409.23 crore, up 31.18% from Rs.311.98 crore a year ago.

Provisions and contingencies surged 77.18% to Rs.199.97 crore in the quarter from Rs.112.86 crore a year ago.

Gross non-performing assets (NPAs) rose 33.15% to Rs.754.62 crore at the end of the March quarter from Rs.566.73 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 1.38%, as compared to 1.38% in the previous quarter and 1.4% in the same quarter a year ago. Net NPAs were at 0.69% in the March quarter compared to 0.72% in the previous quarter and 0.78% in the same quarter last year.

Deposits rose 33.01% to Rs.58,394 crore while advances increased 34.87% to Rs.54,308 crore.

RBL Bank's board recommended dividend of Rs.2.70 per equity share and also approved raising of funds aggregating up toRs.3,500 crore.

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RBL Bank Q3 net profit rise 36%

Private sector lender RBL Bank’s net profit rose by 36 per cent at Rs 225.2 crore for the third quarter ended December 2018, on the back of improvement in interest margins and robust other income. 

The lender had posted a net profit of Rs 165.3 crore in the October-December 2017 (Q3FY18).

The RBL stock was trading 2.4 per cent lower at Rs 560 a share on BSE.

Its Net Interest Income (NII), or interest earnings minus expenses, was up by 40 per cent to 655.1 crore. The Net Interest Margins (NIM) rose to 4.12 per cent for Q3Fy19 from 3.89 per cent for Q3FY18, RBL said in a statement.

The other income consisting of revenues from treasury operations, fees and commissions etc grew by 40 per cent to Rs 374 crore for Q3FY19. 

The bank, which is a medium sized lender in the Indian banking space, reported a 35 per cent rise in its loan book at Rs 49,892 crore, and its deposits were also by 35 per cent at Rs 52,187 crore at end of December 2018.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 

Reflecting better cost management, the private lender's cost-to-income ratio stood at 51.6 per cent in reporting quarter, compared with 54 per cent in same quarter in Fy18.

Its asset quality also improved, with gross non-performing asset (NPA) ratio at 1.38 per cent, compared with 1.56 per cent in Q3FY18. The Net NPA ratio also improved to 0.72 per cent from at 0.97 per cent in Q3 FY18. The provision coverage ratio was better at 63.22 per cent from 52.54 per cent in Q3 FY18.

RBL's capital adequacy ratio stood at 12.86 per cent against 15.03 per cent as at December 31, 2017.

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RBL Bank Q2 profit rises 36%

Private sector RBL Bank Tuesday reported a 36% rise in its September quarter profit to Rs 204.54 crore backed by rise in interest income.

The bank had earned a net profit of Rs 150.62 crore in the same quarter a year ago. Its core net interest income rose 41% to Rs 592.97 crore, while the non-interest income was up 38% Rs 333.11 crore.

On assets quality front, it reported a marginal decline in the gross non-performing assets (NPA) at 1.40% from the 1.44% in the year-ago period. Even the net NPA improved to 0.74% as against 0.78% at the September-end 2017.

The bank’s growth in advances portfolio rose by a 37% on year-on-year basis, RBL Bank said in a statement. “The net advances as at 30 September 2018 were Rs 45,872.66 crore as against Rs 33,576.01 on 30 September 2017, with all-round growth observed in all business segments,” it said.

The net interest margin of the bank expanded to 4.08% from the 3.74% in the year-ago period, it said. The capital adequacy ratio on 30 September 2018 was 13.12% and Tier-1 capital adequacy ratio was 11.84%, significantly higher than the regulatory requirements, it said.

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RBL Bank Q1 net profit rises 35%

RBL Bank Ltd on Thursday reported a 34.8% year on year increase in its June quarter net profit due to higher net interest income and other income. Net profit for the quarter stood at Rs 190.04 crore against Rs 141.02 crore a year ago. According to 7 Bloomberg analysts’ estimate, the bank was expected to post a profit of Rs 191 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 46.07% to Rs552.70 crore versus Rs378.38 crore last year. Other income surged 26.9% to Rs 325.97 crore.

Provisions and contingencies rose 48.58% to Rs140.35 crore in the quarter from Rs94.46 crore a year ago. On a quarter-on-quarter basis, they increased 24.4% from Rs112.86 crore.

Gross non-performing assets (NPAs) surged 30.2% to Rs595.94 crore at the end of the June quarter from Rs457.81 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 1.4% as compared to 1.4% in the previous quarter and 1.46% in the year-ago quarter. Net NPAs were at 0.75% in the June quarter compared to 0.78% in the previous quarter and 0.81% in the same quarter last year.

Advances for the quarter grew 36% to Rs 42,198 crore, while deposits rose 27% to Rs 44,950 crore. Net interest margin rose to 4.04% against 3.54% a quarter ago.

“In the quarter gone by, we have crossed the important milestone of 4% in net interest margins. We have been able to maintain our growth momentum inspite of macro headwinds and continue to demonstrate profitable growth while maintaining robust asset quality”, said Vishwavir Ahuja managing director and chief executive officer of the bank.

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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.

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