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Newly-listed private sector bank RBL Bank saw its net profit grow by over a third to ₹89.89 crore in Q2 FY17 (₹66.93 crore in Q2 FY16). Net interest income for the quarter was ₹302.94 crore (₹189.93 crore), an increase of 59.50 per cent.
Net interest margin (NIM) for Q2 FY17 improved 42 basis points to 3.41 per cent. Cost to income ratio declined to 53.59 per cent in Q2 FY17 from 60.01 per cent in Q2 FY16.
Vishwavir Ahuja, MD & CEO, said: “In the year so far, the bank has continued with strong growth momentum at all levels in terms of asset and deposit growth; particularly savings accounts deposits, as well as profitability, despite a challenging credit environment. With good monsoon and signs of stronger growth momentum in the economy, the banking industry sentiment appears to be positive.
“The focus of business is on ensuring strong client traction in all business segments while leveraging technology to acquire, engage and service clients, improve CASA deposits, improve operating efficiency and maintain credit cost within acceptable levels. Our financial metrics are moving in the right direction for achievement of the medium-term objectives set for the bank.”
The bank’s net advances grew 44 per cent year-on-year to ₹24,875.6 crore while deposits grew 38 per cent y-o-y to ₹27,959.98 crore. The CASA ratio stood at 19.89 per cent as at September 30, 2016 compared to 18 per cent as at September 30, 2015.
Its gross NPAs (bad loans on gross basis) of the bank increased 17 basis points to 1.1 per cent while net NPAs increased seven basis points to 0.55 per cent.
The bank’s capital adequacy ratio as at September 30, 2016 was 14.55 per cent and tier-1 capital adequacy was 11.94 per cent. During the quarter, RBL Bank successfully completed its ₹832.5-crore IPO of equity shares and listed on the NSE and the BSE on August 31.
The bank also successfully completed issuance of subordinated debentures qualifying as tier II capital under Basel III regulations amounting to ₹330 crore and listed on the BSE.
RBL Bank also picked up a 9.9 per cent stake in the equity capital of Utkarsh Micro Finance during the quarter.
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