BackRBL Bank March quarter net profit slumps 54% on higher provisioning
Net profit for the quarter stood at ₹114.36 crore, down 53.73% from ₹247.18 crore a year agoProvisions and contingencies surged three times to ₹614.08 crore in the quarter
PremiumMumbai : RBL Bank Ltd on Thursday reported a sharp 53.73% decline in its March quarter net profit due to higher provisioning.
Net profit for the quarter stood at ₹114.36 crore, down 53.73% from ₹247.18 crore a year ago. The profit was below ₹115.4 crore estimated by a Bloomberg poll of 9 analysts.
Provisions and contingencies surged three times to ₹614.08 crore in the quarter from ₹199.97 crore a year ago. Net interest margin (NIM) for March quarter was 4.93%, while that for FY20 stood at 4.56%.
“The Bank has demonstrated strong growth in operating profits amidst an unprecedented and challenging business environment. In this backdrop, we will continue to be cautious, conservative and focused on preservation of the franchise," said Vishwavir Ahuja, MD & CEO, RBL Bank.
The bank will look to maintain surplus liquidity and tighten risk filters further to manage and improve credit quality, he added.
Gross non-performing assets (NPAs) rose more than twice to ₹2136.52 crore at the end of the March quarter from ₹754.62 crore a year ago.
Net interest income (NII), or the core income a bank earns by giving loans, was up 38.21% to ₹1020.98 crore against ₹738.72 crore last year. Other income was at ₹500.54 crore, up 22.31% from ₹409.23 crore a year ago.
As a percentage of total loans, gross NPAs stood at 3.62%, as compared to 3.33% in the previous quarter and 1.38% in the same quarter a year ago. Net NPAs were at 2.05% in the March quarter compared to 2.07% in the previous quarter and 0.69% in the same quarter last year.
Deposits fell 1.90% to ₹57,812.22 crore while advances increased 6.83% to ₹58,019.05 crore.
Shares of RBL Bank today closed at ₹128.90 on the BSE, down 2.46% from their previous close, while India’s benchmark Sensex index fell 0.76% to close at 31,443.38 points.
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