Private sector lender RBL Bank reported a 11 per cent year-on-year (YoY) increase in net profit to Rs 233 crore for the October-December quarter of fiscal year 2023-24, falling short of market expectations.
The bank’s gross non-performing assets (NPAs) were 3.12 per cent, down from 3.61 per cent in the same period previous year. In contrast, net NPA for the quarter was 0.8 per cent, down from 1.18 per cent the previous year.
The net interest income (NII) of Rs 1546 crore increased by 21 per cent compared to Rs 1277 crore reported in the same quarter the previous fiscal. The NII, at Rs 1546 crore, is somewhat lower than Emkay’s forecasts of Rs 1,559.1 crore.
The bank’s net interest margin was 5.52 per cent, compared to 5.27 per cent in the similar period last year. NIM decreased somewhat from 5.54 per cent.
In accordance with the Reserve Bank of India’s (RBI) directive on alternative investment funds (AIFs), the bank set aside Rs 115 crore.
“The bank took a provision of Rs. 115 crore on AIFs as per the recent RBI circular. These investments are primarily in venture debt funds which have been made over years for building inroads into new-age digital businesses,” said R Subramaniakumar, Chief Executive Officer and Managing Director.
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The bank’s advances increased by 20 per cent YoY to Rs 79,949 crore in the quarter. The lender’s retail advances book increased by 33 per cent to Rs 46,371 crore from Rs 34,977 crore in the October-December FY23 quarter.
The bank’s total deposits amounted at Rs 92,746 crore, up 13 per cent from Rs 81,746 crore. CASA deposits increased by 5 per cent YoY to Rs 31,338 crore from Rs 29,948 crore.
