RBL Bank Q3 Results: Net Profit Rises 34%, NII Up 13.6%

Private lender RBL Bank Ltd.'s third-quarter net profit rose on account of higher core income and lower provisions. 

The bank's net profit for the quarter ended December rose 34% year-on-year to Rs 209 crore, up from Rs 156 crore in the third quarter of FY22.

Net interest income, or core income, for the bank rose 13.6% from a year ago to Rs 1,148 crore. Other income, too, rose 5% year-on-year to Rs 618 crore.

Gross non-performing asset ratio for the bank fell 19 basis points sequentially to 3.61%. Similarly, net NPA improved to 1.18% as on Sept. 30, compared with 1.26% as on June 30. 

RBL Bank's total advances also jumped 15% year-on-year to Rs 66,684 crore. The bank's deposits grew by 11% year-on-year and stood at Rs 81, 746 crore for the October-December quarter.

"Advances momentum is healthy and on an upward trend," R Subramaniakumar, managing director and chief executive officer at RBL Bank, said during media conference on Jan. 20.

While the bank's newly launched products—housing loans and rural vehicle finance—have seen quick uptake, its business loan business has contracted 21% year-on-year. The bank is expecting additional recoveries from the wholesale book over the coming quarter and plans to relaunch small business loans soon as well, Subramaniakumar said.

RBL Bank's CASA deposits grew 18% year-on-year to Rs 29,948 crore for the quarter.

The bank is also yet to appoint a chief financial officer following the demise of its former CFO, Amrut Palan. "We have shortlisted candidates, and the discussions are on," Subramaniakumar said.

Provisions fell 31% year on year to Rs 292 crore in the third quarter.

RBL Bank's fresh slippages are trending lower, and the bank expects to maintain momentum on advances and stable asset quality going forward, Subramaniakumar added.

RBL's shares closed 1.23% higher at Rs 169.35 per share on Jan. 20, while the benchmark Nifty Bank index ended with 0.42% gains.