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.

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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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