RBL Bank profit up 165%

RBL Bank posted a 165 per cent rise in net profit to Rs 144 crore in second quarter ended September 2020 (Q2Fy21) on an increase in net interest income (NII) and dip in provisions and contingencies.

It had posted a net profit of Rs 54 crore in July-September 2019 (Q2fy20).

Its NII grew by seven per cent Rs 932 crore. The Net Interest Margin (NIM) was flat YoY at 4.34 per cent. Sequentially NIMs fell from 4.85 per cent in first quarter ended June 2020 (Q1Fy20) due to proactive reversal of interest income on Non-Wholesale Advances expected to slip by Q3 FY21. Other income rose by just three per cent to Rs 456 crore.

The provisions and contingencies declined to Rs 525.57 crore in Q2Fy21 from Rs 540.58 crore in Q2Fy20. It set aside Rs 310 crore as additional provisions for Covid-19, taking the total Covid-19 provisions to Rs 664 crore Since the March quarter.

The advances declined 4% to Rs 56,162 crore in September 2020 from Rs 58,476 crore a year ago. The deposits were up three per cent to Rs 64,506 crore in September 2020 from Rs 62,829 crore in September 2019.

Vishwavir Ahuja, MD & CEO, RBL Bank said “We continue to be cautious. Balance sheet protection, capital preservation and risk mitigation continues to be of paramount importance. We are seeing growth revival especially in retail businesses. Being well positioned on capital and liquidity, we are growing in our chosen segments”.