RBL Bank Q1 Results: Net Profit Grew 29% YoY To Rs 372 Cr On Healthy Advances

At its meeting on Saturday, July 20, 2024, the Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter ended June 30, 2024. While the operating profit increased 33% YoY to Rs 859 crore, the bank's net profit jumped 29% YoY to Rs 372 crore. The bank's net interest income surged by 20% YoY to Rs 1,700 crore, while its total revenue improved by 19% YoY to Rs 2,505 crore. In Q1FY25, NIM was 5.67%. The bank's core fee income shot up by 20% YoY to Rs 769 crore during the quarter under review, while other income expanded by 18% YoY to Rs 805 crore.

Cost to Income for RBL Bank was 65.7% compared to 69.3% in Q1 FY24, a 357 bps YoY drop, while ROA was 1.14% as opposed to 1.01% in Q1 FY24. While CASA climbed 3% YoY to Rs 33,003 crore, the bank's total deposits soared 18% YoY to Rs 101,352 crore. RBL Bank's CASA ratio stood at 32.6%. Deposits under Rs 3 crore jumped by 25% YoY and 5% QoQ during the quarter under review, reaching Rs 49,980 crore, or 49.3% of total deposits.

Mr. R Subramaniakumar, MD&CEO, RBL Bank remarked, "We are pleased to report another period of stable financial performance. Our performance continues to track our stated goals, with our execution starting to deliver promising outcomes. We are seeing early results from our strategic initiatives."

Net advances at RBL Bank climbed 19% year on year to Rs 86,704 crore, while retail advances jumped 31% year over year and 9% sequentially to Rs 53,737 crore. The retail to wholesale advances mix of the bank was 62:38. The bank's average liquidity coverage ratio was 137%, its common equity Tier 1 ratio was 13.85%, and its overall capital adequacy, including Q1 FY25 profits, was 15.56%.

According to RBL Bank, the Net NPA ratio improved to 0.74% from 1.00% as of June 30, 2023, an improvement of 26 basis points in a year, while the Gross NPA ratio improved to 2.69% from 3.22% in Q1FY24. The bank's provision coverage ratio, which includes technical write-offs, bumped 414 basis points in a year to 90.0% from 85.9% in the year-ago quarter. The bank's total provisions, which include general, contingent, and specific write-offs, amounted to 105% of GNPA.

The bank has 1806 total touch points as of June 30, 2024, of which 1,261 are business correspondent branches and 545 are bank branches.297 of the 1261 BC branches are banking outlets.