RBL Bank shares fall over 13% after Q2 results, net profit declined by 24%

New Delhi: Shares of RBL Bank Ltd. fell as much as 13% after the lender's net profit declined by 24% from the same quarter last year. In the corresponding quarter of the previous fiscal, RBL Bank posted a net profit of Rs 294.1 crore, the bank said in a regulatory filing. Net interest income (NII), rose 9.5%, coming at Rs 1,615 crore against Rs 1,475 crore in the corresponding quarter of FY24.

The gross non-performing asset (GNPA) stood at 2.88% in the March quarter against 2.69% in the December quarter.

Net NPA came at 0.79% against 0.74% quarter-on-quarter.In asset terms, gross NPA stood at Rs 2,581.1 crore against Rs 2,377.82 crore quarter-on-quarter, whereas net NPA came at Rs 697.5 crore against Rs 638.9 crore quarter-on-quarter. The net interest margin (NIM) came at 5.04% against 5.54% year-on-year and 5.67% quarter-on-quarter.

The bank's total deposits grew by 20% year-on-year, reaching Rs 107,959 crore as of Q2FY25. The bank's Current Account and Savings Account (CASA) deposits saw a 13% year-on-year rise to Rs 36,224 crore, with a CASA ratio of 33.6%.

The bank's net advances portfolio grew by 15% year-on-year to Rs 87,882 crore, with the retail advances book showing a 24% year-on-year rise to Rs 54,723 crore. The retail-to-wholesale advances mix stood at 62:38. Retail disbursements for H1 FY25 amounted to Rs 8,400 crore, compared to Rs 9,788 crore in H1 FY24.

The Provision Coverage Ratio, including technical write-offs, stood at 89.35%. Credit cost for H1 FY25 was 140 basis points (bps), while it was 80 bps for Q2 FY25. Total provisions, including specific, general, and contingent provisions, were 102% of the bank's gross non-performing assets (GNPA).

The Bank's capital adequacy ratio, including H1 FY25 profits, improved to 15.9% from 15.6% as of June 30, 2024, with the Common Equity Tier 1 (CET 1) ratio increasing to 14.2% from 13.8%. The bank maintained an average Liquidity Coverage Ratio (LCR) of 133% for H1 FY25 and 129% for Q2 FY25.