RBL Bank Ltd. reported a fall in its quarterly net profit as core income declined and provisions rose.
The private lender’s net profit for the quarter fell 34% to Rs 75 crore, from Rs 114 crore a year ago, according to an exchange filing. Analysts polled by Bloomberg had pegged the net profit at Rs 102 crore.
Net interest income, or core income, fell 11% from a year ago to Rs 906 crore. This compares with a forecast of Rs 936 crore. The bank’s other income, however, rose 38% year-on-year to Rs 688 crore.
Gross non-performing asset ratio for the bank improved marginally to 4.34% as on March 31 compared with 4.57% reported in December.
Net NPA ratio improved 40 basis points sequentially to 2.12%.
The asset quality numbers for the October-December period included accounts that were not classified as NPA due to a Supreme Court order banks from downgrading stressed accounts at the time.
During the quarter, the bank increased provisions against bad loans to Rs 766 crore compared with Rs 601 crore in the year-ago quarter and Rs 610 crore in the three months ended December. This took the bank’s provision coverage ratio up to 72.2% from 68.8% at the end of the third quarter.
Advances & Deposits
Advances rose just 1% during the quarter to Rs 58,623 crore but the bank stepped up investments via its debt portfolio. Those rose 28% year-on-year to Rs 23,230 crore.
Deposits rose 26% to Rs 73,121 crore. The ratio of current account savings account deposits or CASA to total deposits stood at 31.8% compared with 31.1% a quarter ago.