 "A broker laughs while speaking to a colleague, as they trade on their computer terminals at a stock brokerage firm in Mumbai")
RBL Bank was up 7% to Rs 334 on the BSE in intra-day trade after the bank reported a healthy 34% year on year (YoY) jump in net profit after exceptional item at Rs 89.89 crore for the quarter ended September 30, 2016 (Q2FY17). The private sector lender had posted a profit of Rs 66.93 crore in the quarter ended September 30, 2015 (Q1FY16).
During the quarter RBL Bank acquired 9.88% stake in Utkarsh Microfinance Ltd and have taken Rs 28.47 crore write off, which is the premium paid for the acquisition.
Net interest income rose 60% YoY at Rs 303 crore in Q2FY17 against Rs 190 crore in the corresponding quarter of previous fiscal. Net Interest Margin (NIM) for Q2FY17 was 3.41% as against 2.99% in Q2FY16, showing an improvement of 42 basis points (bps).
“RBL Bank has come out with a good set of results for the quarter. Being the first result by the bank post IPO, it was highly awaited by investor community and the bank has met the expectations with a 44% growth in Loan and 38% growth in Deposits,” said Siddharth Purohit, Senior Equity Research Analyst – Banking, Angel Broking.
On the asset quality front the bank has delivered stable set of numbers, with slippages under control. Though absolute gross net-performing assets (GNPAs) went up to Rs 275 crore in Q2FY17 compared to Rs 253 crore in Q1FY17, as a % of loans it has come down to 1.10% from 1.13%. We don’t expect deterioration in the asset quality in the medium term, he adds.
Commenting on the performance, Mr. Vishwavir Ahuja, MD & CEO, RBL Bank said “With good monsoon and signs of stronger growth momentum in the economy, the banking industry sentiment appears to be positive. The focus of business is on ensuring strong client traction in all business segments while leveraging technology to acquire, engage and service clients, improve CASA deposits, improve operating efficiency and maintain credit cost within acceptable levels. Our financial metrics are moving in the right direction for achievement of the medium term objectives set for the Bank.”
The trading volumes on the counter jumped by more than six-fold with a combined 10.59 million shares changed hands on the BSE and NSE till 09:56 am.
During the quarter RBL Bank acquired 9.88% stake in Utkarsh Microfinance Ltd and have taken Rs 28.47 crore write off, which is the premium paid for the acquisition.
Net interest income rose 60% YoY at Rs 303 crore in Q2FY17 against Rs 190 crore in the corresponding quarter of previous fiscal. Net Interest Margin (NIM) for Q2FY17 was 3.41% as against 2.99% in Q2FY16, showing an improvement of 42 basis points (bps).
“RBL Bank has come out with a good set of results for the quarter. Being the first result by the bank post IPO, it was highly awaited by investor community and the bank has met the expectations with a 44% growth in Loan and 38% growth in Deposits,” said Siddharth Purohit, Senior Equity Research Analyst – Banking, Angel Broking.
On the asset quality front the bank has delivered stable set of numbers, with slippages under control. Though absolute gross net-performing assets (GNPAs) went up to Rs 275 crore in Q2FY17 compared to Rs 253 crore in Q1FY17, as a % of loans it has come down to 1.10% from 1.13%. We don’t expect deterioration in the asset quality in the medium term, he adds.
Commenting on the performance, Mr. Vishwavir Ahuja, MD & CEO, RBL Bank said “With good monsoon and signs of stronger growth momentum in the economy, the banking industry sentiment appears to be positive. The focus of business is on ensuring strong client traction in all business segments while leveraging technology to acquire, engage and service clients, improve CASA deposits, improve operating efficiency and maintain credit cost within acceptable levels. Our financial metrics are moving in the right direction for achievement of the medium term objectives set for the Bank.”
The trading volumes on the counter jumped by more than six-fold with a combined 10.59 million shares changed hands on the BSE and NSE till 09:56 am.
