RBL Bank reports net loss of Rs 459 cr as provisions rise threefold

The superior adequacy ratio improved 80 ground points y-o-y to 17.2% during the June quarter, compared to 16.4% arsenic connected June 30, 2020.

RBL Bank connected Monday reported a nett nonaccomplishment of Rs 459 crore successful the 4th ended June 2021 owed to a threefold emergence successful provisioning. The slope had reported a nett net of Rs 141 crore successful the corresponding 4th past year.

Provisions accrued 186% year-on-year (y-o-y) and 86% sequentially to Rs 1,426 crore. Operating nett of the lender accrued 17% y-o-y to Rs 807 crore, but declined 8% sequentially. Although the bank’s nett involvement income (NII) fell 7% y-o-y to Rs 970 crore, the lender had enactment from emergence successful different income. Non-interest income surged 109% y-o-y to Rs 695 crore, which included Rs 562 crore of interest income. Net involvement margins (NIM) declined 49 ground points (bps) y-o-y to 4.36%, but improved 19 bps sequentially.

Vishwavir Ahuja, MD & CEO, RBL Bank, said, “While our revenues and operating profits person held up good and proceed to turn twelvemonth connected year, the effect of the 2nd question of the Covid-19 pandemic connected our plus prime was alternatively terrible and antithetic from the archetypal question fixed the quality of our businesses, contempt the planned counter-cyclicality successful our concern mix.”

The lender saw a emergence successful atrocious loans during the June quarter. Its gross non-performing assets (NPA) ratio accrued 65 ground points to 4.99%, compared to 4.34% successful the erstwhile quarter. However, the nett NPA ratio improved 11 ground points to 2.01% from 2.12% successful the March quarter. The lender has strengthened its equilibrium expanse by expanding proviso sum ratio by 580 ground points to 76.3% successful June 2021.

“We person decided to instrumentality a steadfast presumption and wide the decks for the future, by taking accelerated oregon much than capable provisions, preparing the slope to instrumentality to normalised levels of business, provisioning, maturation and profitability. We expect instrumentality connected assets of 1%, erstwhile we exit Q4 of FY22,” Ahuja said.

The cost-to-income ratio of the slope accrued by 70 ground points y-o-y to 51.5% during Q1FY22. Advances remained level astatine Rs 56,527 crore. While the retail loans grew 7% y-o-y to Rs 32,071 crore, wholesale advances declined 9% y-o-y to Rs 24,456 crore.

Deposits grew 21% y-o-y and 2% sequentially to Rs 74,471 crore. Current relationship savings relationship deposits grew 35% y-o-y and 8% quarter-on-quarter to Rs 25,071 crore.

The superior adequacy ratio improved 80 ground points y-o-y to 17.2% during the June quarter, compared to 16.4% arsenic connected June 30, 2020.