RBL Bank Q2 Results: Net Profit Plunges 24% To Rs 223 Cr; Asset Quality Trend

At its meeting on Saturday, October 19, 2024, the Board of Directors of RBL Bank Limited announced the unaudited financial results for the quarter ended September 30, 2024. In the quarter under review, the bank posted a net profit of Rs 223 Cr, which was 24% YoY lower than the Rs 294 Cr in the same period last year and a 40% QoQ drop from Rs 372 Cr reported in Q1FY25.

The bank's net interest income (NII) jumped 9% YoY from Rs 1,475 Cr in the year-ago quarter to Rs 1,615 Cr in the quarter under review.

RBL Bank said its operating profit zoomed 24% YoY to Rs 910 Cr from Rs 731 Cr whereas operating expenses surged 13% YoY to Rs 1,632 Cr in Q2FY25 from Rs 1,448 Cr in Q2FY24.

The bank's net total income stood at Rs 2,542 Cr up from Rs 2,179 Cr whereas its other income zoomed 32% YoY to Rs 927 Cr in Q2FY25 from Rs 704 Cr in the year-ago quarter.

RBL Bank Results Summary for H1/ Q2 FY25

While Net Interest Income (NII) increased 9% YoY to Rs 1,615 crore in Q2 FY25, NIM for Q2 FY25 was 5.04%, NII for H1 FY25 climbed 14% YoY to Rs 3,315 crore. The bank's other income increased by 25% YoY to Rs 1,733 crore in H1 FY25 and by 32% YoY to Rs 927 crore in Q2 FY25. Operating expenses at RBL Bank increased 13% YoY to Rs 3,279 crore in H1 FY25 and 13% YoY to Rs 1,632 crore in Q2 FY25. The bank's total revenue increased 18% YoY in H1 FY25 to Rs 5,048 crore and 17% YoY in Q2 FY25 to Rs 2,542 crore.

Operating profit for the bank increased 28% YoY in H1 FY25 to Rs 1769 crore and 24% YoY in Q2 FY25 to Rs 910 crore. While ROA for H1 FY25 was 0.88% and ROE was 7.79%, and ROA for Q2 FY25 was 0.64% and ROE was 5.76%, net profit for H1 FY25 increased 2% YoY to Rs 594 crore.

Mr. R Subramaniakumar, MD & CEO, RBL Bank said, "We are pleased to report another quarter of steady financial performance, demonstrating progress towards our strategic objectives. While we remain mindful of certain near-term challenges, our core operations continue to show resilience. Our cross-sell initiatives and 'One Bank' approach are beginning to deliver tangible results, enhancing customer engagement across multiple product lines."

The bank's CASA climbed 13% YoY to Rs 36,224 crore, while its total deposits increased 20% YoY to Rs 107,959 crore. 33.6% is the CASA ratio. According to RBL Bank, its retail advances book increased 24% YoY to Rs 54,723 crore, while its net advances book increased 15% YoY to Rs 87,882 crore. The bank disbursed Rs 8,400 crore for H1 FY25 compared to Rs 9,788 for H1 FY24, and Rs 4,248 crore for Q2 FY25 compared to Rs 4,152 crore for Q2 FY24.

The bank's net non-performing asset (NPA) ratio jumped by 1 basis point in a year to 0.79% from 0.78% as of September 30, 2023, while its gross non-performing asset (NPA) ratio rose by 25 basis points to 2.88% from 3.12% in the same quarter of the previous year. According to RBL Bank, the technical write-offs that made up its provision coverage ratio was 89.35%. Credit cost was 80 bps for Q2 FY25 and 140 bps for H1 FY25. The bank's overall provisions, which include general, contingent, and specific provisions, amount to 102% of GNPA.

As of September 30, 2024, the bank had 1,882 total touchpoints, of which 1,332 were business correspondent branches and 550 were bank branches. There are 297 banking places among the 1,332 BC branches.