Money & Banking

RBL Bank Q1 net profit down 47%

Our Bureau Mumbai | Updated on July 28, 2020 Published on July 28, 2020

RBL Bank’s net profit in the first quarter of the fiscal nearly halved and was down 47.1 per cent to ₹141.22 crore with a sharp rise in provisions. The bank’s net profit amounted to ₹267.05 crore for the quarter ended June 30, 2019.

Its total income rose by 2.6 per cent to ₹2,568.32 crore for the April to June 2020 quarter when compared to ₹2,503.88 crore a year ago.

Net interest income in the quarter ended June 30 grew by 27 per cent to ₹1,041 crore versus ₹817 crore a year ago. Net interest margin improved to 4.85 per cent at the end of the first quarter from 4.31 per cent a year ago, but it was lower sequentially from 4.93 per cent as on March 31, 2020.

The bank reported other income of ₹334 for the quarter under review, which was 33 per cent lower than the ₹501 crore registered in the quarter ended June 30, 2019.

Provisions shot up to ₹500.16 crore for the first quarter of FY21 from ₹196.95 crore a year ago.

In a statement on Tuesday, the bank said it has made Covid-19-related provisions of ₹240 crore in the first quarter of FY21, with total cumulative provisions of ₹350 crore in the fourth quarter of FY20 and first quarter this fiscal.

Gross non-performing assets surged to ₹1,992.07 crore or 3.45 per cent of gross advances as on June 30from 1.38 per cent a year ago. Net NPAs stood at 1.65 per cent of net advances at the end of the first quarter this fiscal from 0.65 per cent a year ago.

Vishwavir Ahuja, Managing Director and CEO, RBL Bank, said: “The quarter was a mixed bag. As a bank, we have achieved a robust set of numbers in this challenging business environment. We will continue to maintain surplus liquidity, high capital levels and tight risk filters in the near term.”

The bank’s net advances growth remained flat year-on-year at ₹56,683 crore while deposits grew by two per cent to Rs 61,736 crore in the first quarter of the fiscal.

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Published on July 28, 2020
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