RBL Bank Q4 results: Net profit sinks 34% YoY, misses estimates; asset quality improves

MUMBAI: at present reported a 34 per cent year-on-year decline in net profit to Rs 75 crore, which was beneath analysts’ estimates. The decline in profit was largely on account of upper provisioning within the quarter.

The lender’s web curiosity revenue within the quarter slumped 11 per cent on-year to Rs 906 crore, which was additionally beneath Street’s estimates.

However, the lender reported an enchancment in asset quality for the quarter. The financial institution’s gross non-performing belongings ratio was at 4.34 per cent as towards 4.57 per cent on a proforma foundation 1 / 4 in the past. Similarly, web NPA ratio stood at 2.12 per cent as towards 2.52 per cent 1 / 4 in the past.

Operating performance within the quarter was agency as pre-provision working profit rose 17 per cent on-year to Rs 877 crore. However, web curiosity margin contracted 70 foundation factors on-year to 4.2 per cent because of reversal of curiosity revenue on slippages.

The lender mentioned that slippages from the BB and beneath rated loan book had been at 10 per cent within the earlier monetary yr but it surely expects to revert to regular pattern of 5-7 per cent in 2021-22.

The asset quality of enterprise loans deteriorated within the quarter to 1.85 per cent from 1.75 per cent 1 / 4 in the past on a professional forma foundation. At the identical time, the quality of retail books improved to 2.49 per cent from 2.82 per cent.

The lender registered a 26 per cent development in deposits to Rs 73,121 crore however mortgage ebook grew merely 1 per cent to Rs 58,623 crore. The muted mortgage development efficiency was largely as a result of 12 per cent decline in wholesale ebook, whereas the retail mortgage ebook surged 13 per cent.

Shares of RBL Bank ended 0.9 per cent larger at Rs 182.9 on the National Stock Exchange.

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