Private sector lender RBL Bank on Saturday reported a 43% jump in its June quarter net profit at Rs 288 crore, helped by core income growth.
The city-based lender reported a 21% jump in the core net interest income at Rs 1,246 crore on the back of a 21% growth in advances and a 0.48% expansion in net interest margin to 4.84%. The other income grew 12% to Rs 685 crore.
The bank is aiming to expand the NIMs further to 5% going forward on the back of a better product mix, its managing director and chief executive R Subramaniakumar said.
Its retail loans grew by 34%, with newer products like mortgages experiencing the maximum growth.
Subramaniakumar said the share of unsecured assets presently stands at 43%, and the bank is targeting to decrease this by two percentage points by the end of the fiscal, as the share of secured retail finances, including home loans, two-wheeler loans and auto loans, grows.
At the same time, it is continuing to focus on the credit cards segment, which has been identified as a niche segment, Subramaniakumar said, adding that this book will grow by up to 25% in FY24.
The cost-to-income ratio has come down to 66.5%, but there is a possibility for the same to go up in the next two quarters because of annual wage hikes, he said.
On the expenses front, the lender has achieved some successes on technology costs and a greater number of loans being sourced from its branches as sales agents earlier, he said.
The overall capital adequacy for the bank stood at 16.7%, with the core tier-I being at 15.1%. The branch is set to open about 70-75 branches this fiscal.
Subramaniakumar said RBL Bank has also moved up "fairly" when it comes to its governance standards over the past year.
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