RBL Bank Q1 Results: Net Profit Rises On Lower Provisions
RBL Bank net profit rises as provisions drop.
Private lender RBL Bank Ltd. reported a net profit of Rs 201 crore in the first quarter compared with a net loss of Rs 459 crore a year ago as provisions fell.
Analysts polled by Bloomberg estimated a net profit of Rs 198 crore during the quarter.
Net interest income for the quarter stood at Rs 1,028 crore, up 6% year-on-year, according to its exchange filing. Other income, however, fell 6% from a year ago to Rs 614 crore.
Asset quality metrics for the lender showed an improvement as gross non-performing asset ratio stood at 4.08%, down 32 basis points on a quarter-on-quarter basis. Net NPA ratio as of June 30 stood at 1.12% compared with 1.34% as of March 31.
Provisions for the quarter stood at Rs 253 crore compared with Rs 1,384 crore a year earlier, registering a drop of 82%.
RBL Bank's net advances rose 7% from a year earlier to Rs 60,270 crore. Deposits too rose 6% year-on-year to Rs 79,216 crore.
"Our focus would be to consolidate, leverage and optimize our existing platform so as to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more retail products," R Subramaniakumar, managing director and chief executive officer, said in a statement.