RBL Bank's net profit surged 165% to Rs 144 crore in Q2 September 2020 from Rs 54 crore in Q2 September 2019.
Net interest income rose 7% to Rs 932 crore in the second quarter from Rs 869 crore in the same period last year. Net Interest Margin stood at 4.34% as on 30 September 2020 compared with 4.35% as on 30 September 2019.
Total income during the quarter declined by 1.3% year-on-year (YoY) to Rs 2533.47 crore. Profit before tax jumped 89.42% to Rs 194.19 crore during the period under review.
The bank's provisions and contingencies fell by 2.8% to Rs 525.57 crore in Q2 FY21 from Rs 540.58 crore in Q2 FY20. The provisional coverage ratio was at 74.75% in Q2 FY21 as compared to 58.45% in Q2 FY20.
Gross non-performing assets (NPAs) stood at Rs 1,911.72 crore as on 30 September 2020 as against Rs 1,992.07 crore as on 30 June 2020 and Rs 1,539.10 crore as on 30 September 2019.
The ratio of gross NPAs to gross advances stood at 3.34% as on 30 September 2020 as against 3.45% as on 30 June 2020 and 2.60% as on 30 September 2019.
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The ratio of net NPAs to net advances stood at 1.38% as on 30 September 2020 as against 1.65% as on 30 June 2020 and 1.56% as on 30 September 2019.
Total deposits have risen by 3% to Rs 64,506 crore in Q2 FY21 from Rs 62,829 in Q2 FY20. Net advances at the end of the September 2020 quarter declined by 4% to Rs 56,162 crore as compared to Rs 58,476 crore at the end of September 2019 quarter.
CASA jumped 21% to Rs 20,064 crore in Q2 FY21 from Rs 16,620 crore in Q2 FY20. CASA ratio stood at 31.1% as on 30 September 2020 as against 26.5% as on 30 September 2019.
The bank added 6 branches during Q2FY21 taking total number of branches to 398 as at 30 September 2020. In addition the bank also has 1,219 business correspondent branches, of which 254 are banking outlets.
Commenting on the performance Vishwavir Ahuja, MD & CEO, RBL Bank said "We are seeing growth revival especially in our retail businesses and being well positioned on capital and liquidity we are growing in our chosen segments. As a bank, we have again achieved a robust set of numbers in this quarter and prudently added to our provisioning buffers. Despite the positive signals, we continue to focus on balance sheet protection, risk mitigation and capital conservation in the near term."
Separately, RBL Bank said that the Reserve Bank of India had granted its approval to Maple II B.V., for acquiring more than 5% but up to 9.99% of the paid up share capital of the bank.
On 20 August 2020, the board of the private lender approved issuing 8.84 crore equity shares on preferential basis at Rs 177 each, aggregating to Rs 1566 crore. The bank said that it would issue 5.64 crore shares to Maple II B.V. (affiliated with Baring PE Asia), 1.86 crore shares to ICICI Prudential Life, 48.90 lakh shares to CDC Group, 4.23 lakh shares to Gaja Trustee Company and 80.50 lakh shares to Gaja Capital Fund II. Consequent to the preferential issue, the Capital Adequacy Ratio of the bank would rise to 18.6% with CET-1 ratio rising to 17.4%., the private lender added.
RBL Bank is a private sector bank. It offers specialized services under six business verticals namely: corporate & institutional banking, commercial banking, branch & business banking, retail assets, development banking and financial inclusion, treasury and financial markets operations.
Shares of RBL Bank rose 0.26% to 175.65 on Wednesday.
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