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RBL Bank’s net profit fell by by over 73 per cent in the second quarter of the fiscal as its provisions shot up by over 280 per cent and bad loans increased.
For the quarter ended September 30, 2019, the private sector lender posted a net profit of Rs 54.31 crore as against Rs 204.54 crore in the corresponding period a year ago.
RBL Bank’s net interest income rose by a robust 47 per cent to Rs 868.7 crore in the second quarter of the fiscal as against Rs 593 crore a year ago. Net interest margin was a tad higher at 4.35 per cent in the second quarter of the fiscal from 4.33 per cent a year ago.
The bank’s other income also grew a healthy 33 per cent in the July to September 2019 quarter to Rs 441.5 crore from Rs 333.11 crore in the corresponding period a year ago.
However, provisions shot up sharply to Rs 533.30 crore in the second quarter of the fiscal from Rs 139.68 crore a year ago.
The bank’s gross non-performing assets more than doubled to Rs 1539.10 crore as on September 30, 2019 or 2.6 per cent of gross advances from Rs 644.97 crore or 1.4 per cent a year ago.
Net NPAs also surged to Rs 912.30 crore or 1.56 per cent of net advances as on Septemebr 30, 2019 from Rs 338.55 crore or 0.74 per cent a year ago.
Vishwavir Ahuja, Managing Director and CEO, RBL Bank said, “As we had highlighted a few months ago, given the difficult corporate credit environment we have faced challenges in a few corporate accounts. As a matter of prudence, we have have taken higher thatn required provisions on these accounts which has impacted our bottom line.”
He also expressed confidence that the bank will return to normalised earnings trajectory by the end of the fiscal year.
The board of directors of the bank also appointed Veena Mankar as a Non- Executive (Additional) Director, Amrut Palan as the Chief Financial Officer with immediate effect.
RBL Bank scrip closed 2.84 per cent lower at Rs 286.90 apiece on BSE.
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