Mumbai: RBL Bank on Wednesday reported a 34 per cent increase in the September quarter net
at Rs 89.9 crore on a healthy rise in core interest income fuelled by loan book expanding at a faster clip.
But for a Rs 28.47-crore exceptional hit on account of buying a 9.88 per cent stake in the microlender Utkarsh Mirco Finance, the profit growth would have been much higher, the newly-listed private sector bank said.
Core net interest income grew 60 per cent during the reporting quarter to Rs 302.94 crore on a 44 per cent rise in advances, while the other income was up 51 per cent to Rs 169.11 crore.
Net interest margin expanded to 3.10 per cent for the first half (April-September) from 2.96 per cent a year ago. Overall provisions more than doubled to Rs 49.58 crore during the quarter under review from Rs 22.30 crore in the year-ago period.
The gross non-performing assets (NPAs) ratio increased to 1.10 per cent in the three-month period from 0.93 per cent at the end of second quarter of 2015-16.
Managing director and chief executive Vishwavir Ahuja told PTI that the faster increase in the income streams helped the bank bring down its cost to income ratio to 54 per cent from over 60 per cent in the year-ago period.
He, however, hinted the lender does not expect such rapid declines going forward and added that it is targeting to get it down to 50 per cent by FY20.
"All the investments which we have been doing over the last few years are now bearing fruit and the ratio will keep going down," Mr Ahuja said, adding that the bank will be investing in network expansion and technology solutions on payments side.
Shares in RBL Bank closed 1.41 per cent higher at Rs 312.75 apiece on the BSE, whose benchmark Sensex finished down 0.24 per cent.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
