RBL Bank Q1 Results: Asset Quality Worsens, Lower Core Income Weighs On PAT
(Photo source: Vijay Sartape/NDTV Profit)
Worsening asset quality, higher provisions and lower net interest income weighed on RBL Bank's June quarter results. The bank's standalone net profit fell by 46% on year to Rs 200 crore. However, the bottomline was threefold higher sequentially.
Net interest income of the bank declined 13% on year to Rs 1,481 crore. The net interest margin of the bank fell sharply to 4.50% in the June quarter from 4.89% in the quarter ended March.
Operating profit fell by over 18% on year to Rs 703 crore.
Provisions and contingencies against bad loans rose nearly 21% on year to Rs 442 crore.
Gross non-performing assets ratio of the bank rose to 2.78% from 2.6% in the previous quarter. Net NPA ratio also rose to 0.45% compared with 0.29% in the March quarter.
The bank's gross slippage ratio fell to 1.15% in the June quarter from 1.18% as on March-end and 0.86% a year ago.
"During Q1 FY26, slippages in the JLG (joint liability group) portfolio have moderated, with SMA (special mention account) levels reverting to Q1 FY25 level," Managing Director and Chief Executive Officer R Subramania Kumar said in the press release.
Special mention accounts are those that have defaulted on loan repayments but are yet to be designated as non performing assets.
Net advances of the bank grew 9% on-year to Rs 94,431 crore during the April-June period.
De-growth in unsecured retail by 10% on year drove the overall retail advances book by 5% on-year to Rs 56,625 crore. Growth in secured retail book was 23% on-year.
Credit cards de-grew 1% on-year and personal loans fell by 23% on-year, and joint lending group portfolio de-grew by 11%, as per the bank.
Deposits rose 11% on year to Rs 1.12 lakh crore.
