Stocks

RBL Bank shares tank nearly 14%

PTI New Delhi | Updated on July 19, 2019 Published on July 19, 2019

Expects to face challenges on some of the exposures in near term

Shares of RBL Bank on Friday tumbled nearly 14 per cent after the lender said that given the difficult environment, it expects to face challenges on some of the exposures in the near term.

The scrip cracked 13.71 per cent to close at ₹500.35 on the BSE. During the day, it tumbled 14.33 per cent to ₹496.70. On the National Stock Exchange (NSE), shares plunged 13.75 per cent to close at ₹500 apiece. In terms of traded volume, 15.40 lakh shares were traded on the BSE and over two crore shares on the NSE during the day.

The bank Friday reported a jump of 41 per cent in the June quarter net profit at ₹267.10 crore on higher fee income and fall in bad loans. The private sector lender registered a profit of ₹190 crore during the April-June quarter of 2018-19. “The bank has had a good quarter of strong performance and has continued to maintain its growth momentum and improvement in operating metrics. However, given the difficult environment we do expect to face some challenges on some of our exposures in the near term,” Managing Director and Chief Executive Officer Vishwavir Ahuja said. At the same time, given the strong momentum in the bank’s businesses, RBL Bank expects to maintain a healthy profitable growth over the coming quarters, Ahuja said.

Total income during June quarter of the ongoing financial year rose to ₹2,503.88 crore, as against ₹1,690.19 crore in the year-ago period, the bank said in a regulatory filing. Gross non-performing assets (NPAs) fell to 1.38 per cent of the gross advances by end of June 2019, as against 1.40 per cent by end of June 2018. Net NPAs or bad loan ratio also came down to 0.65 per cent from 0.75 per cent.

Published on July 19, 2019
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