RBL Bank posts 30% profit on loan growth
RBL Bank on Saturday reported a 30% increase in fourth-quarter net profit to ₹353 crore, boosted by strong loan growth and its efforts to contain bad loans.
For the financial year 2023-24, net profit rose 32% to ₹1,168 crore.
«Growth in assets and liabilities, cross selling and our (success) in maintaining asset quality contributed to the growth in profits,» managing director and chief executive R Subramania Kumar said.
Interest income rose 26% on year to ₹3,339 crore during the quarter ended March 31, while interest expenses increased 35% to ₹1,739 crore, according to the filings it made to stock exchanges. Other income, essentially comprising treasury profits, rose 30% to ₹875 crore.
Net interest margin eased to 5.45% from 5.62% a year earlier.
«There is still some passing pressure on cost, therefore, the cost of deposit is expected to go up. In the near term, we expect flat margins, but in the future, we expect them to go up,» Kumar said.
RBL reported 20% year-on-year growth in net advances for the quarter at ₹83,987 crore, while deposit climbed 22% to ₹1,03,494 crore. The bank's current and savings account ratio amounted to 35.2%.
Gross non-performing ratio reduced 72 basis points year-on-year to 2.65%, while the provision coverage ratio, including technical write-offs, was 89.8%, the bank said. But provisioning and contingencies rose 76% to ₹414 crore for the quarter.
«In the future, we expect to see 20% growth in advances and this will be supported by deposit growth,» Kumar said. The bank's board
