RBL Bank reported a 59 per cent jump in net profit at ₹129 crore in the third quarter ended December 30, 2016, on the back of robust growth in net interest income and other income.

The private sector bank had reported a net profit of ₹81 crore in the year-ago period.

In the reporting quarter, net interest income (the difference between interest earned and interest expended) was up 45 per cent year-on-year (y-o-y) at ₹321.58 crore (₹222.44 crore in the year-ago period).

Other income, comprising commission, exchange and brokerage, profit from sale of investments, and other non-interest income, jumped 66 per cent y-o-y at ₹182.26 crore (₹109.64 crore).

Net interest margin (net interest income/total assets) improved to 3.38 per cent in the reporting quarter from 3.25 per cent in the year-ago period.

As at December-end 2016, deposits were up 44 per cent y-o-y to ₹30,005 crore.

Low-cost current account, and savings account (CASA) deposits increased to 23.15 per cent of total deposits from 18.22 per cent.

Advances rose 46 per cent to ₹26,773 crore. Of the total advances, 80 per cent were secured and the rest unsecured.

Vishwavir Ahuja, MD and CEO, RBL Bank, said, “Every engine of the bank continued to fire well. We have witnessed growth across the board — on the advances side, on the deposits side, on the fee-income side, in terms of composition of deposits (especially CASA growth), and also in terms of keeping control on credit costs (bringing them down actually), and improving the asset quality. Everything sort of fell in place.”

While corporate and retail loans saw healthy growth, there was a little bit of softness in disbursements in the micro-lending and agriculture segments, he added.

As at December-end 2016, gross non-performing assets as a percentage of gross advances were almost flat at 1.06 per cent (1.08 per cent as at December-end 2015).

RBL Bank shares closed at ₹368.35 apiece, down 2.51 per cent over the previous close on the BSE.

Related Topics
comment COMMENT NOW