RBL Bank Q2 Results | Net profit falls 24% to ₹223 crore but NII up 10% to ₹1,615 crore.
RBL Bank Ltd reported a 24.4% year-on-year decline in net profit to ₹222.5 crore for Q2 FY25, while net interest income increased by 9.5% to ₹1,615 crore.
On Saturday, October 19, RBL Bank Ltd reported a year-on-year decline of 24.4% in net profit, totaling ₹222.5 crore for the second quarter ending September 30, 2024. In the same quarter last year, the bank had a net profit of ₹294.1 crore, as stated in a regulatory filing. A CNBC-TV18 poll had anticipated a profit of ₹278.3 crore for this quarter.
Net interest income (NII), which reflects the difference between the interest earned from lending and the interest paid to depositors, increased by 9.5%, reaching ₹1,615 crore compared to ₹1,475 crore in the same quarter of FY24.
The gross non-performing asset (GNPA) ratio rose to 2.88% in the March quarter, up from 2.69% in the December quarter. Net NPA stood at 0.79%, compared to 0.74% quarter-on-quarter. In monetary terms, gross NPA was ₹2,581.1 crore, up from ₹2,377.82 crore, while net NPA rose to ₹697.5 crore from ₹638.9 crore. The net interest margin (NIM) decreased to 5.04% from 5.54% year-on-year and 5.67% quarter-on-quarter.
RBL Bank's total deposits grew by 20% year-on-year, reaching ₹107,959 crore by Q2FY25. Current Account and Savings Account (CASA) deposits rose by 13% year-on-year to ₹36,224 crore, with a CASA ratio of 33.6%. Granular deposits, defined as those under ₹3 crore, increased by 22% year-on-year and 4% quarter-on-quarter, totaling ₹52,223 crore and accounting for 48.4% of total deposits.
The bank’s net advances portfolio grew by 15% year-on-year to ₹87,882 crore, with retail advances rising 24% to ₹54,723 crore. The retail-to-wholesale advances mix was 62:38. For H1 FY25, retail disbursements totaled ₹8,400 crore, down from ₹9,788 crore in H1 FY24, while Q2FY25 retail disbursements slightly increased to ₹4,248 crore from ₹4,152 crore in Q2FY24. Housing loans surged by 56% year-on-year, rural vehicle finance grew by 58%, and commercial banking advances rose by 17%. The customer base expanded to 16.06 million as of September 30, 2024, up from 14.31 million a year earlier.
The capital adequacy ratio improved to 15.9% from 15.6% as of June 30, 2024, including H1 FY25 profits, with the Common Equity Tier 1 (CET 1) ratio rising to 14.2% from 13.8%. The average Liquidity Coverage Ratio (LCR) was 133% for H1 FY25 and 129% for Q2 FY25.
The Provision Coverage Ratio, including technical write-offs, was 89.35%. The credit cost for H1 FY25 was 140 basis points (bps), while for Q2 FY25 it was 80 bps. Total provisions, including specific, general, and contingent provisions, accounted for 102% of the bank's gross non-performing assets (GNPA). As of September 30, 2024, RBL Bank had 1,882 total touchpoints, including 550 bank branches and 1,332 business correspondent branches, of which 297 are banking outlets.
These results were announced after market hours. On Friday, October 19, RBL Bank Ltd shares closed at ₹205.45, rising by ₹2.90 or 1.43% on the BSE.
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