RBL Bank has posted a 34 per cent year-on-year growth in net profit for Q3 FY23 at ₹209 crore, led by healthy loan growth and stable asset quality.

Net advances of the bank rose 15 per cent year-on-year and 6 per cent quarter-on-quarter at ₹66,684 crore as of December 31. Retail loans were up 13 per cent y-o-y and 7 per cent sequentially to ₹34,977 crore.

“We have had another quarter of improving operating performance, and we are confident of continuing this trend in the coming quarters. Our initiatives over the last six months on new product launches, and scale up of granular retail products are also starting to bear fruit,” said MD and CEO, R Subramaniakumar, adding that as these products scale up, growth will become more broad-based.

Net interest income of the bank was 14 per cent higher at Rs 1,148 crore. Net interest margin (NIM) for the quarter was at 4.74 per cent.

In the post earnings call, Subramaniakumar said that the cost of deposits which is at 5.5 per cent is expected to move up.

“But, because of our interest which we are earning from some of the products, we don’t see an impact on NIM as we move forward. Rather we are of the view, that NIM will trend will move upwards from hereon,” he said.

Total deposits grew 11 per cent YoY to Rs 81,746 crore  at the end of December, led by an 18 per cent growth in low-cost CASA deposits to Rs 29,948 crore--accounting for 36.6 per cent of total deposits.

Gross NPA ratio of the bank improved to 3.6 per cent from 3.8 per cent a quarter ago and 4.84 per cent a year ago. The net NPA ratio at 1.18 per cent was also better than 1.26 per cent in the previous quarter and 1.85 per cent in the year ago period.

On appointment of a CFO, Subramaniakumar said that the bank has shortlisted the candidates, discussions are on and the bank will proceed at the earliest.

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