RBL Bank's standalone net profit declined 53.7% to Rs 114.36 crore on a 20.7% rise in total income to Rs 2708.77 crore in Q4 March 2020 over Q4 March 2019.
RBL Bank's asset quality slightly worsened. The bank's gross non-performing assets (NPAs) stood at Rs 2136.52 crore as on 31 March 2020 as against Rs 2010.48 crore as on 31 December 2019 and Rs 754.62 crore as on 31 March 2019.The ratio of gross NPAs to gross advances stood at 3.62% as on 31 March 2020 as against 3.33% as on 31 December 2019 and 1.38% as on 31 March 2019.
The ratio of net NPAs to net advances stood at 2.05% as on 31 March 2020 as against 2.07% as on 31 December 2019 and 0.69% as on 31 March 2019.
The bank's provisions and contingencies soared 207% to Rs 614.08 crore in Q4 March 2020 over Q4 March 2019. The bank in notes to accounts said that it has created a provision of Rs 107.95 crore in addition to the RBI prescribed norm on the back of SARS-CoV-2 virus. RBL Bank's provisioning coverage ratio stood at 64.04% as on 31 March 2020 as against 58.07% reported on 1 Dec 2019.
Net Interest Income (NII) grew 38% year-on-year (YoY) to Rs 1,021 crore during Q4 March 2020 from Rs 739 crore in Q4 March 2019. Net interest margin (NIM) grew to 4.93% in Q4 March 2020 from 4.23% reported in Q4 March 2019.
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Capital Adequacy Ratio as per BASEL III Capital regulations as at 31st March, 2020 was 16.45% against 13.46% as at 31st March 2019.
Commenting on the performance Vishwavir Ahuja, MD & CEO, RBL Bank said, "The Bank has demonstrated strong growth in operating profits amidst an unprecedented and challenging business environment. In this backdrop, we will continue to be cautious, conservative and focused on preservation of the franchise. As a Bank, we will look to maintain surplus liquidity high capital levels, tighten risk filters further to manage and improve credit quality, and balance sheet protection. A lot of this was already happening with the macro situation pre-COVID but the current environment has made it all the more important. We continue to maintain healthy liquidity. Deposit traction is gaining momentum again and our deposits are now higher than March 31 levels and in excess of Rs 60,000 crores as of April end."
RBL Bank reported a 41.7% drop in net profit to Rs 505.67 crore in the full year ended on 31 March 2020 (FY20) as compared to a net profit of Rs 866.95 crore posted in the full year ended on 31 March 2019 (FY19). While the bank's total income rose 34.6% to Rs 10424.63 crore, provisions and contingencies soared 212% to Rs 1998.85 crore in FY20 over FY19.
The board has also approved an interim dividend of Rs 1.5 per equity share. Shares of RBL Bank were trading 0.23% higher at Rs 129.20 on BSE.
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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