Private sector RBL Bank today reported a 55 per cent surge in the March quarter net at Rs 130 crore, driven by healthy growth in retail and corporate advances, and fee income.
The recently-listed bank posted a 52 per cent growth in post-tax profit for the full year at Rs 446.05 crore.
Core net interest income grew 47 per cent to Rs 352 crore, driven by a 39 per cent expansion in advances and widening of margins to 3.5 per cent from 3.2 per cent.
Managing Director and Chief Executive Vishwavir Ahuja said retail and corporate banking loans grew the fastest at over 50 per cent.
Other income, comprising fees and commissions, grew to Rs 236.55 crore from Rs 142.71 crore a year ago.
A recent RBI directive to recognise bad and doubtful assets resulted in the lender's gross non-performing assets ratio shooting up to 1.20 per cent from 0.98 per cent, and the provisions more than doubling to Rs 82.10 crore.
Ahuja said the increase in bad loans is primarily due to a single account from the EPC sector with an exposure of Rs 66 crore which had to be recognised as an NPA following the RBI order and the bank made a Rs 30 crore provision for this account.
Ahuja said six accounts emerged out after the RBI circular on curtailing divergences is asset recognition, but was quick to added that five of them have since paid back.
The provision coverage ratio moved up to 60 per cent from 55 per cent in the year-ago period.
For the current financial year, the bank is targeting a credit growth of up to 35 per cent, Ahuja said, adding retail, development banking and financial inclusion verticals will be leading the growth.
The bank opened 42 branches in the year and is aiming to add another 40-60 this year, Ahuja said.
The bank scrip closed 3.70 per cent up at Rs 585.55 on the BSE, whose benchmark ended the session flat.
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