Money & Banking

RBL Bank Q3 profit jumps 36% to Rs 225 cr

PTI New Delhi | Updated on January 28, 2019

RBL Bank logo   -  Twitter/ RBL Bank

RBL Bank on Monday reported a rise of 36 per cent in net profit at Rs 225.20 crore for December quarter 2018-19 on healthy margins and decline in bad loan proportion. The private sector lender had registered a net profit of Rs 165.30 crore in October-December period of the previous financial year.

Total income increased 42 per cent to Rs 1,029.20 crore as against Rs 725.50 crore in December quarter of 2017, the bank said in a statement. Net interest income was up 40 per cent to Rs 655.10 crore during December quarter 2018 as against Rs 467.30 crore in the year-ago period. Net interest margin -- a key gauge of profitability--improved year-on-year to 4.12 per cent in the reported quarter from 3.89 per cent.

On asset front also, the bank showed improvement with gross non-performing assets (NPAs) falling to 1.38 per cent of gross advances as on December 31, 2018 from 1.56 per cent in the year-ago period. Net NPAs or bad loans were also trimmed to 0.72 per cent of net loans from 0.97 per cent a year ago, the bank said. Deposits at December-end 2018 stood at Rs 52,187.10 crore as compared to Rs 38,622.5 crore in the year-ago period, a growth of 35 per cent. Current accounts and savings accounts (CASA) ratio improved to 24.57 per cent from 24.03 per cent.

MD and CEO Vishwavir Ahuja said the bank has again demonstrated the ability to consistently maintain growth momentum at better margins and higher profitability while maintaining robust asset quality during the quarter. “This is despite challenges in the broader macro environment. We continue to gain market share in our chosen segments and are confident of achieving our 2020 goals,” he said. The bank also renamed its wholly-owned subsidiary Swadhaar Finserve to RBL Finserve which is well positioned to take advantage of a plethora of opportunities in the semi-urban and rural markets, Ahuja said.

Stock of RBL Bank was trading at Rs 563, down 1.97 per cent from the previous close on BSE.

Published on January 28, 2019

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