MUMBAI: RBL Bank, a mid-sized private sector lender that has been facing headwinds for some time, reported a sharp 46% drop in net profit to ₹200 crore for the June quarter, down from ₹371.5 crore a year earlier. However, on a sequential basis, the bank saw an improvement in net profit, rising from ₹69 crore in the previous quarter.
The management, meanwhile, remains optimistic about a recovery in margins and profitability in the coming quarters.
"Margins have bottomed out, and we should see an improvement from Q3," said CEO R Subramaniakumar in the earnings call on Saturday.
"The recent cut in deposit rates should start showing an impact in Q2 and Q3," he said, adding he is confident of maintaining 14-15 percent growth going forward.
The bank’s total standalone income for the quarter stood at Rs 4,510 crore, slightly up from Rs 4,476 crore.
Interest income remained steady at Rs 3,441 crore, while other income including fees, commissions, forex earnings, and investment gains rose to Rs 1,069 crore from Rs 1,000 crore.
However, provisioning rose to Rs 442 crore, considerably lower than Rs 785 crore in Q4 but higher than Rs 366 crore in the year-ago quarter impacting the bottomline.
Similarly gross NPAs rose to Rs 2,685.9 crore from Rs 2,377.8 crore in the year-ago period, and net NPAs also rose to Rs 428.8 crore from Rs 638.9 crore.
The GNPA ratio was largely stable at 2.78 compared to 2.69 while the net NPA ratio improved to 0.45 from 0.74 percent a year earlier. Net advances grew 9% to ₹94,431 crore; of which secured retail loans grew 23% and unsecured retail loans de-grew 10% . Total deposits grew 11% to ₹112,734 crore; of which Casa grew by 11% to ₹36,614 crore.