RBL Bank Faces Profit Decline Amid Asset Quality Challenges
RBL Bank has reported a significant 24% drop in net profit for the September quarter due to asset quality issues linked to credit card and microfinance books. With stress mainly attributed to industry-wide challenges and internal factors, the bank anticipates improvement by March.

- Country:
- India
RBL Bank has experienced a notable 24% decline in net profit for the September quarter, reporting gains of Rs 223 crore compared to Rs 294 crore during the same period last year. Asset quality challenges, particularly in the credit card and microlending books, are the prime culprits.
In a media briefing, RBL Bank's CEO, R Subramaniakumar, highlighted industry-wide issues impacting microfinance and internal factors affecting credit cards as contributing factors to the bank's setback. The bank has hired new personnel to manage the credit card collections in-house, which previously relied on external partners, aiming for stabilization by the end of the third quarter.
The gross non-performing assets ratio decreased slightly to 2.88%, despite a rise in advances by 15%. Although the net interest income grew by 9%, this was overshadowed by higher slippages and credit costs, with provisions soaring to Rs 618 crore. However, a 32% surge in other income provided a compensatory effect.
(With inputs from agencies.)
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