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RBL Bank reports 47% drop in Q1 PAT due to higher provisioning

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Capital Market
Last Updated : Jul 29 2020 | 10:04 AM IST

The private bank's net profit fell 47.1% to Rs 141.22 crore on 2.6% rise in total income to Rs 2568.32 crore in Q1 FY21 over Q1 FY20.

However, the bank's net interest income (NII) rose 27% year-on-year (YoY) to Rs 1,041 crore during the quarter. Net Interest Margin stood at 4.85% as on 30 June 2020 as against 4.31% as on 30 June 2019.

The bank's provisions and contingencies surged 153.95% to Rs 500.16 crore in Q1 FY21 from Rs 196.95 crore in Q1FY20. The provisional coverage ratio was at 70.46% in Q1 FY21 as compared to 69.13% in Q1 FY20. The bank said it set aside Rs 240 crore for COVID-19 related provisions, taking the total money set aside due to possible reverses because of the pandemic to Rs 350 crore.

Gross non-performing assets (NPAs) stood at Rs 1,992.07 crore as on 30 June 2020 as against Rs 2,136.52 crore as on 31 March 2020 and Rs 789.21 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 3.45% as on 30 June 2020 as against 3.62% as on 31 March 2020 and 1.38% as on 30 June 2019. The ratio of net NPAs to net advances stood at 1.65% as on 30 June 2020 as against 2.05% as on 31 March 2020 and 0.65% as on 30 June 2019.

Total deposits have risen by 2% to Rs 61,736 crore in Q1 FY21 from Rs 60,811 in Q1 FY20. Net advances at the end of the June 2020 quarter remained flat to Rs 56,683 crore as compared to Rs 56,837 crore at the end of June 2019 quarter.

CASA ratio stood at 30.1% as on 30 June 2020 as against 25.8% as on 30 June 2019. Cost to Income Ratio was at 49.8% in Q1 June 2020 as compared to 53.6% in Q1 June 2020.

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Commenting on the performance, Vishwavir Ahuja, MD & CEO, RBL Bank said: "The quarter was a mixed bag. While on one hand, rising infection rates added to uncertainty, on the other hand, as we transitioned to unlocking in large parts of the country we saw business activity pick up sharply in the second half of the quarter. As a Bank, we have achieved a robust set of numbers in this challenging business environment. We will continue to maintain surplus liquidity, high capital levels and tight risk filters in the near term."

Shares of the private lender rose 1.68% to trade at Rs 184.90. It traded in the range of 175 and 189.40 so far during the day.

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. The bank has a network of 392 branches, 1,221 business correspondent branches (of which 263 banking outlets) and 389 ATMs spread across 28 Indian states and Union Territories.

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First Published: Jul 29 2020 | 9:32 AM IST

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