RBL Bank reports 41% jump in Q1 net profit rises to Rs 267 crore

Private sector lender RBL Bank continued its strong earnings. RBL Bank Ltd posted a 40.5% year-on-year jump in net profit for the June quarter at Rs 267 crore.

According to Live Mint, the bank posted a net profit of Rs 267.05 crore for the three months ended 30 June, against Rs 190.04 crore in the year-ago period. On the other hand, profit was higher than Rs 262 crore estimated by a Bloomberg poll of 12 analysts. Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 47.88% to Rs 817.32 crore during the quarter, from Rs 552.7 crore in the corresponding period last year. Other income, which includes core fee income, rose 47.62% to Rs 481.21 crore in the three months from Rs 325.97 crore a year ago.

The bank reported earnings in line with street expectations. Profit was expected to be Rs 260 crore and net interest income Rs 788.4 crore, according to a CNBC-TV18 poll estimates. Asset quality remained stable in Q1 as gross non-performing assets stood unchanged at 1.38 percent of gross advances and net NPA fell 0.65 percent against 0.69 percent on sequential basis. But slippages remained high at Rs 225 crore at the end of June quarter against Rs 206 crore in Q4FY19. Even write-offs were higher at Rs 147 crore in the quarter gone by, against Rs 91 crore in the previous quarter.

"The bank has had a good quarter of strong performance and has continued to maintain its growth momentum and improvement in operating metrics. However, given the difficult environment, we do expect to face some challenges on some of our exposures in the near term," Vishwavir Ahuja, MD & CEO, RBL Bank said in a BSE filing, reported the Money Control.

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