Private sector lender RBL Bank reported a six per cent growth in its standalone net profit for the third quarter of the fiscal at ₹156 crore compared to Rs 147 crore a year ago. For the quarter ended December 31, 2021, its net interest income grew 11 per cent to ₹1,010 crore as against ₹908 crore in the same period last fiscal. However, it was a sharp jump of 407 per cent from the net profit of ₹31 crore in the second quarter of the fiscal. Net interest margin was 4.3 per cent as on December 31, 2021. Other income grew 8 per cent on a year-on-year basis to ₹620 crore in the third quarter of the fiscal. Provisions declined by 30 per cent to ₹424 crore in the October to December 2021 quarter versus ₹606 crore a year ago. Asset quality remained under pressure but improved sequentially. Gross non-performing assets was 4.84 per cent of gross advances or ₹2,901.91 crore as on December 31, 2021, as compared to 5.4 per cent as on September 30, 2021 and 1.84 per cent as on December 31, 2020. Net NPA was 1.85 per cent as on December 31, 2021 versus 2.14 per cent as on September 30, 2021 and 0.71 per cent as on December 31, 2020. Rajeev Ahuja, Mananging Director and CEO (Interim), RBL Bank said “This has been a turnaround quarter as we have seen a sharp improvement in both profitability and asset quality. Our business and advances momentum is now firmly on a positive trajectory, and we expect this to continue with retail also returning to growth.”
The bank’s advances grew three per cent year-on-year to ₹58,141 crore as on December 31, 2021, and deposits grew 10 per cent year-on-year to ₹73,639 crore. However, on a sequential basis, deposits fell by three per cent. In a media call, Ahuja said there was a brief challenge to deposits in the last week of December, but it has now recovered and is higher than levels on December 24, 2021. To a query on the appointment of a new MD and CEO, Ahuja said the board is treating this matter in a very expeditious manner. A committee with the bank’s NRC members and an outside expert is working on the appointment of a new MD and CEO. EgonZehnder is the search firm for identifying suitable candidates for the post.
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