RBL Bank Q1 FY24 Net Profit Surges 43% YoY to Rs 288 Crore
The unaudited financial results for the quarter ended 30 June 2023, were approved by the Board of Directors of RBL Bank Limited during their meeting held on 22 July 2023, as per an exchange filing by the company.
In the first quarter of FY24, RBL Bank exhibited strong operating performance with a notable 43 per cent year-on-year increase in net profit, reaching Rs 288 crore, and a 6 per cent quarter-on-quarter rise. The bank's return on assets (ROA) stood at 1.01 per cent compared to 1 per cent in Q4 FY23. Moreover, the operating profit witnessed a 22 per cent YoY growth, amounting to Rs 647 crore, and a 9 per cent QoQ increase.
The bank's total revenue saw an 18 per cent YoY surge, totaling Rs 1,932 crore, and a 2 per cent QoQ rise. Net Interest Income (NII) also recorded significant growth, increasing 21 per cent YoY to Rs 1,246 crore, with Net Interest Margin (NIM) at 4.84 per cent compared to 4.36 per cent in Q1 FY23. The bank's other income witnessed a 12 per cent YoY increase, amounting to Rs 685 crore.
In terms of deposits, the bank experienced a 12 per cent YoY growth in CASA (Current Account and Savings Account), reaching Rs 31,927 crore. The total deposits grew 8 per cent YoY, reaching Rs 85,636 crore, with retail deposits growing 19 per cent YoY to Rs 37,400 crore.
Regarding advances, RBL Bank's net advances book grew 21 per cent YoY, amounting to Rs 73,087 crore, with retail advances growing 34 per cent YoY, reaching Rs 40,866 crore. The bank disbursed Rs 4,100 crore for retail advances during Q1 FY24.
The bank reported a strong asset quality, with the gross NPA ratio improving to 3.22 per cent from 3.37 per cent as of 31 March 2023, and 4.08 per cent as of 30 June 2022. The net NPA ratio also improved to 1 per cent from 1.10 per cent in Q4 FY23 and 1.16 per cent in Q1 FY22. The provision coverage ratio, including technical write-offs, increased to 85.9 per cent from 85 per cent as of 31 March 2023.
RBL Bank, well-capitalised with sound liquidity, reported an overall capital adequacy of 16.68 per cent, and the Common Equity Tier 1 ratio was 15.05 per cent. The average Liquidity Coverage Ratio was at 129 per cent.
R Subramaniakumar, MD & CEO of RBL Bank, expressed confidence in the bank's performance, emphasising the healthy advances growth and improvements in deposits and revenue optimisation. The bank's shares were trading at Rs 221.70, marking a 0.93 per cent increase at 3:30 pm IST on the reported date.
