RBL Bank Records 46% YoY Growth In Q2 PAT On Strong Rally In NII By 26%

At its meeting on Saturday, October 21, 2023, the Board of Directors of RBL Bank Limited declared financial statements for the quarter ended September 30, 2023. The bank said that its standalone PAT for Q2 FY24 jumped by 46% YoY and 2% QoQ to Rs. 294 crore, while its consolidated net profit climbed by 77% YoY and 4% QoQ to Rs. 331 crore.

During the quarter under review, its consolidated operating profit jumped by 54% YoY and 12% QoQ to Rs. 765 crore; its standalone operating profit for Q2 FY24 jumped by 43% YoY and 13% QoQ to Rs. 731 crore.

According to RBL Bank, ROA was 1.00% in Q2FY24 compared to 0.77% in Q2FY23, and ROE was 8.38% compared to 6.12% in Q2FY23. The bank said that for the quarter ended September 30, 2023, its total revenue jumped by 24% YoY and 3% QOQ to Rs 2,179 crore. Net Interest Income for RBL Bank climbed by 26% YoY and 4% QoQ to Rs. 1,475 crore in Q2 FY24, while NIM was 5.54% as opposed to 5.02% in Q2 FY23.

Its other income grew by 21% YOY and 3% QOQ to Rs 704 crore during the quarter under review, and the cost to income was 66.5% as opposed to 69.3% for Q1 FY24 and 70.8% for Q2 FY23. In Q2FY24, RBL Bank's CASA climbed by 12% YOY and 1% QOQ to Rs 32,089 crore. CASA ratio was 35.7% as of September 30, 2023, down from 36.2% reported in the year-ago quarter.

Retail deposits climbed 19% YOY and 4% QOQ to Rs 39,706 crore, while the bank's total deposits jumped 13% YOY and 5% QOQ to Rs 89,780 crore in Q2FY24.

The bank's advances expanded by 21% YoY and 4% sequentially to Rs 76,324 crore, led by significant retail advances growth of 35% YoY and 8% sequential growth by reaching Rs 44,092 crore.

The Gross NPA ratio for RBL Bank improved to 3.12% from 3.80% at the end of September 2022 and 3.80% at the end of June 2023, an improvement of 68 basis points YoY. Its Net NPA ratio rose to 0.78% in Q2FY24 from 1.00% at the end of June 2023 and 1.26% at the end of September 2022, an increase of 48 basis points in a year. The bank's Provision Coverage Ratio including technical write-offs was 88.4% in Q2FY24 as against 85.9% as of 30th June 2023 and 84.3% as of 30th Sep 2022, up by 410 bps yearly.

The overall provisions made by the bank, which included contingent, general, and specific provisions, were 106% of GNPA in Q2FY24.

The bank has 528 bank branches as of September 30, 2023, and 1,206 business correspondent branches, of which 296 were banking outlets. The bank's wholly owned subsidiary RBL Finserve Limited recorded 882 business correspondent branches.

Mr. R Subramaniakumar, MD&CEO, RBL Bank said "We are happy to announce yet another quarter of improving operating performance. The advances growth was healthy with strong growth in retail segment. Our revenue has grown at healthy pace; operating expenses are stable sequentially, driven by continued cost optimisation.

In order to further strengthen the balance sheet and build buffers proactively, we have taken contingent provision on our credit card & microfinance portfolio. We are also pleased with the progress we are making on cross sell opportunity, within the large card and liability base we have, and we expect this to accelerate further going forward.