Mumbai: RBL Bank posted a substantial 46 percent year-on-year increase in net profit, reaching Rs 294 crore for the quarter ending September.
This growth was primarily attributed to a surge in net interest income, which saw a 26 percent year-on-year and 4 percent quarter-on-quarter rise, totaling Rs 1,475 crore.
The Net Interest Margin stood at 5.54 percent, as opposed to 5.02 percent in Q2 FY23.
It's worth noting that provisions for the September quarter spiked more than 2.6 times to Rs 640 crore, in contrast to Rs 241 crore in Q2 FY23.
This surge in provisions was attributed to the establishment of contingent provisions in the bank's microfinance and credit card segments, accounting for 1 percent of the total advances of Rs 252 crore.
The bank revised its credit card provisioning policy, setting aside full provisions for non-performing assets at 120 days, resulting in an additional provision of Rs 48 crore. A tax provision write-back of Rs 222.92 crore (pre-tax of Rs 297.89 crore) also contributed to these added provisions.
The bank's Gross Non-Performing Assets (NPA) ratio saw a year-on-year decrease to 3.12 percent in the quarter, down from 3.80 percent in the same period the previous financial year.
The Net NPA ratio also experienced a decline, dropping to 0.78 percent in Q2 FY24 from 1.26 percent in Q2 FY23.
The yield on assets for the quarter was 1 percent, as opposed to 0.8 percent in the corresponding quarter of the preceding financial year. Additionally, the cost of funds stood at 6.33 percent, compared to 5.19 percent.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
