Oct 20, 2016 08:53 AM IST IST | Source: Moneycontrol.com

RBL Bank Q2 profit jumps 34% to Rs 90 cr on robust biz growth

Private sector lender RBL Bank's profit surged 34.3 percent year-on-year to Rs 89.9 crore on robust business growth and exceptional income despite higher provisions in July-September quarter.

Moneycontrol Bureau

Private sector lender RBL Bank's profit surged 34.3 percent year-on-year to Rs 89.9 crore on robust business growth and exceptional income despite higher provisions in July-September quarter.

"Exceptional item was related to a pre-tax charge of Rs 28.47 crore towards marking a strategic investment to book value of the investee company, being the acquisition of 9.9 percent equity stake in Utkarsh Micro Finance in September 2016," the bank said.

Net interest income, the difference between interest earned and interest expended, shot up 59.5 percent to Rs 302.9 crore on yearly basis with loan growth of 44 percent and deposits growth of 38 percent.

It was the first quarterly earnings from Kolhapur-headquartered bank.

Other income (non-interest income) grew by 50.6 percent to Rs 169.1 crore in Q2. Operating profit during the quarter jumped 81.3 percent to Rs 219.1 crore compared with year-ago period.

Provisions for bad loans spiked 122.3 percent year-on-year and 16.4 percent quarter-on-quarter to Rs 49.58 crore in September quarter 2016.

Asset quality improved on sequential basis as gross non-performing assets declined to 1.1 percent from 1.13 percent and net NPA fell to 0.55 percent from 0.66 percent.

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