RBL Bank Faces Profit Decline Amidst Lending Setbacks

RBL Bank reported a 76% decline in consolidated net profit for the Jan-Mar quarter due to setbacks in unsecured lending. Net interest income fell, while provisions increased. The bank expects NIM compression for six more months and aims for growth in retail and wholesale assets.

RBL Bank has announced a significant setback with a 76% drop in its consolidated net profit for the quarter ending in March, reporting Rs 86.99 crore against Rs 364 crore in the same period last year. This decline is largely attributed to setbacks in unsecured lending and microfinance troubles.

The bank's provisions increased sharply to Rs 785 crore from Rs 414 crore last year, as it increased allocations for microfinance and credit card books. However, RBL Bank expressed optimism that future provisions may not be as high going forward.

Despite a 7% growth in net advances, the core net interest income fell by 2% due to a decline in the net interest margin to 4.89%. The bank is focusing on increasing retail assets by over 25% and doubling wholesale asset growth, while also stabilizing its net interest margins in the coming months.

(With inputs from agencies.)