RBL Bank Q3 Results: PAT Grew 12% YoY To Rs 233 Cr; Advances & Deposits Clocks Robust Growth

At its meeting on Friday, January 19, 2024, the Board of Directors of RBL Bank Limited announced the unaudited financial results for the quarter ended December 31, 2023. The bank reported an 11% growth in net profit to Rs 233 crore from Rs 209 crore during the same period last year.

Its other income jumped by 26% YoY and 10% QoQ to Rs 778 crore, while its net interest income jumped by 21% YoY and 5% QoQ to Rs 1,546 crore. The NIM was 5.52% in Q3FY24 up from 5.27% for Q3 FY23.

RBL Bank said that its core fee income jumped by 23% YoY and 7% QoQ to Rs 729 crore, while its cost to income fell by 300bps YoY to 67.1% from 70.1% in Q3 FY23 while ROA was 1.03% as opposed to 0.78% for Q3 FY23 and 0.75% for Q3 FY24. The bank said that although its total revenue jumped by 23% YoY and 7% QoQ to Rs 2,323 crore, operating profit improved by 35% YoY and 5% QoQ to Rs 765 crore.

According to RBL Bank, CASA climbed 5% YoY to Rs 31,338 crore, while total deposits increased 13% YoY to Rs 92,746 crore. As of December 31, 2022, the CASA ratio was 33.8%, down from 36.6% in the year-ago quarter. Deposits under Rs. 2 crore jumped by 23% YoY and 5% QoQ to Rs. 41,275 crore, or 44.5% of total deposits, according to the bank.

Mr. R Subramaniakumar, MD&CEO, RBL Bank said "We are happy to announce another quarter of strong financial performance. Our advances & deposits have experienced robust growth with granularity of both sides of Balance Sheet catching pace. As per our plan, the Profitability growth has outpaced Balance Sheet growth. Notably, our execution of strategic goals, have contributed to our performance. We remain well capitalised to take advantage of opportunities for growth".

Net advances at RBL Bank rose by 20% YoY and by 5% sequentially to Rs 79,949 crore, while retail advances jumped by 33% YoY and by 5% sequentially to Rs 46,371 crore. The bank's retail disbursement for Q3 FY 24 reached Rs 5,958 crore. The bank said that its average liquidity coverage ratio was 132%, its total capital adequacy was 16.42% compared to 17.07% on September 23. Its common equity Tier 1 ratio was 14.58% compared to 15.15% on September 23.

According to RBL Bank, the Gross Non-Performing Asset (NPA) ratio climbed by 49 basis points in a year to 3.12% from 3.61% as of December 31, 2022, while the Net NPA ratio increased by 39 basis points to 0.80% from 1.18% in Q3FY23.

According to RBL Bank, the Gross Non-Performing Asset (NPA) ratio climbed by 49 basis points in a year to 3.12% from 3.61% as of December 31, 2022, while the Net NPA ratio increased by 39 basis points to 0.80% from 1.18% as of the same date in 2022.

The bank's provision coverage ratio, which includes technical write-offs, improved by 460 basis points in a year to 89.3% from 84.7% as of December 31, 2022, while credit cost climbed to 48 basis points. The bank's whole provisions, including general, contingent, and particular ones, amount to 108% of GNPA.

The bank has 1,217 business correspondent branches, of which 290 are banking outlets, and 538 bank branches as of December 31, 2023. The bank's wholly owned subsidiary RBL Finserve Limited holds charge of 897 business correspondent branches.