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Private sector lender RBL Bank, on Thursday, reported a 39 per cent jump in net profit to ₹247.2 crore for the fourth quarter of 2018-19 on the back of robust net interest margin.
It had a net profit of ₹178.1 crore in the quarter ended March 31, 2018. Net interest margin of the bank improved by 25 basis points to 4.23 per cent for the fourth quarter of last fiscal, against 3.98 per cent in the same period in the previous fiscal.
“We continue to see strong profit growth momentum and hope to sustain it in coming quarters. We will focus on maintaining strong asset quality,” said Vishwavir Ahuja, Managing Director and CEO, RBL Bank.
Net interest income or core income of the bank rose by 48 per cent to ₹738.7 crore for the January to March quarter of 2018-19, against ₹ 500.5 crore in the same period year ago.
For the full fiscal year 2018-19, the bank posted a net profit of ₹867 crore, which was 37 per cent higher than the net profit of ₹635.1 crore in 2017-18.
In absolute terms, gross non-performing assets of the bank rose to ₹754.62 crore for the quarter under review, from ₹566.73 crore in the same period a year ago.
Net NPAs also rose to ₹372.74 crore for the quarter ended March 31, 2019.
However, gross NPAs fell to 1.38 per cent of gross advances as on March 2019, from 1.40 per cent in the year-ago period, while net NPAs, too, came down to 0.69 per cent from 0.78 per cent in the same period.
The bank increased the provision coverage ratio to 65.3 per cent at the end of the fourth quarter last fiscal from 57.57 per cent in the corresponding period in the previous fiscal.
Its advances portfolio grew by 35 per cent to ₹54,308.2 crore as on March 31, 2019, against ₹40,267.8 on March 31, 2018.
Deposits grew by 33 per cent to ₹58,394.4 crore by end of the last fiscal with CASA growing faster at 37 per cent.
Fund-raising plans
The bank’s board also approved raising of ₹3,500 crore through issuance of equity shares or depository receipts and other securities, including through QIP, GDRs, ADRs, FCCBs, or such methods.
Ahuja said the bank has adequate capital till 2020, and this is just an enabling provision that may be used over the next eight to nine months or 15 to 18 months.
RBL Bank’s scrip fell 0.71 per cent and closed at ₹676.10 apiece on the BSE.
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