RBL Bank reports 36 pct growth in net profit to Rs 225 cr in Q3

Small-sized private sector lender RBL Bank Monday reported a 36 per cent growth in December quarter net at Rs 225.2 crore, helped by margin expansion and also healthy growth in across income lines. The core net interest income grew at healthy 40 per cent at Rs 655.1 crore, boosted by a higher margin which touched 4.12 per cent from 3.89 per cent and a 35 per cent loan growth, while other income clipped past 45 per cent to Rs 374.1 crore on improvement in fee lines.

Managing director and chief executive Vishwavir Ahuja attributed the margin expansion primarily to a shift in business mix to more retail lending and also to an improved loan pricing ability. He also exuded the confidence of maintaining the margins at the higher level. Retail advances now constitute 43 per cent of its loan book with the rest being wholesale lending, he said, adding the microlending book constitutes 13 per cent which has been particularly accretive from a margin perspective.

The share of the low-cost current and saving account improved to 24.57 per cent from 24.03 per cent in the quarter. Total provisions almost doubled to Rs 160.68 crore, while the provision coverage ratio went up to over 62 per cent and Ahuja hinted that there will be higher provisioning next quarter to take the PCR further up.

Gross non-performing assets improved to 1.38 per cent from 1.56 per cent in the year-ago period. Its total capital adequacy comes down to 12.86 per cent, but Ahuja said that it will not need fundraising for the next 12-18 months.

RBL Bank has not bought any NBFC portfolios during the quarter and its exposure to the troubled sector is also flat. The bank scrip closed 1.85 per cent down at Rs 563.70 on the BSE as against a 1.02 per cent correction in the benchmark.