RBL Bank fell 1.18% to Rs 335.1 on the back of declining net profit, weak asset quality and jump in provisions.
On a standalone basis, RBL Bank's net profit tumbled 69% to Rs 69.95 crore in Q3 December 2019 as compared with Q3 December 2018. The bank reported a 31.4% rise in total income to Rs 2644.30 crore in Q3 December 2019 over Q3 December 2018.The standalone profit before tax (PBT) slumped 72.21% to Rs 93.88 crore in Q3 December 2019 as against Rs 337.79 crore in Q3 December 2018. Tax expense reduced 78.75% to Rs 23.93 in Q3 December 2019 as compared with Rs 112.60 crore in Q3 December 2018.
Net interest income stood at Rs 922.6 crore in Q3 December 2019 as against Rs 655.1 crore in Q3 December 2018, registering a jump of 41%. Net interest margin (NIM) improved to 4.57% in Q3 2019 up from 4.12% reported in Q3 2018.
Commenting on company's Q3 performance, Vishwavir Ahuja, chief executive, RBL Bank, in a statement, said, Challenges in a few corporate accounts and related provisioning requirements have impacted the bottomlime for the quarter. We are digesting this short-term pain and are looking to put this behind us over the next few months.
The bank's gross non-performing assets (NPAs) stood at Rs 2,010.48 crore as on 31 December 2019 as against Rs 1,539.10 crore as on 30 September 2019 and Rs 695.54 crore as on 31 December 2018.
The ratio of gross NPAs to gross advances stood at 3.33% as on 31 December 2019 as against 2.6% as on 30 September 2019 and 1.38% as on 31 December 2018.
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The ratio of net NPAs to net advances stood at 2.07% as on 31 December 2019 as against 1.56% as on 30 September 2019 and 0.72% as on 31 December 2018.
The bank's provisions and contingencies (excluding tax provisions) surged 297.24% to Rs 638.29 crore in Q3 December 2019 as against Rs 160.68 crore in Q3 December 2018.
CASA (Current Account & Saving Accounts) ratio for Q3 2019 stood at 26.79%, up from 24.57% in Q3 2018.
RBL Bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, agriculture finance and financial inclusion, treasury operations and other banking related activities.
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