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Last Updated : May 07, 2020 05:24 PM IST | Source: Moneycontrol.com

RBL Bank Q4: Profit dips 54% to Rs 114 crore on three-fold jump in provisions; NII grows 38%

Provision coverage ratio at the end of March quarter improved to 64.04 percent, against 58.07 percent in Q3FY20, said the bank.

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Private sector lender RBL Bank on May 7 reported a whopping 53.7 percent year-on-year (YoY) decline in standalone profit for the quarter ended March 2020, dented by higher provisions.

Profit fell to Rs 114.36 crore, from Rs 247.18 crore in the same period last year. Sequentially though it jumped 63.5 percent partly due to low base and a fall in provisions (down 3.8 percent QoQ).

Provisions and contingencies shot up significantly by 207.1 percent year-on-year to Rs 614.08 crore during March quarter as the bank held 107.95 crore provisions in addition to the RBI prescribed norms.


"The extent to which the COVID-19 pandemic will impact the Bank's provision on assets will depend on the future developments, which are highly uncertain, including new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether mandated by external authorities or by the bank," RBL said in its BSE filing.

Net interest income, the difference between interest earned and interest expended, was strong in Q4FY20, rising 38.2 percent to Rs 1,020.98 crore YoY and the sequential growth was 10.7 percent.

Advances book grew by 7 percent YoY (down 3 percent QoQ) with non-wholesale advances (accounted for 56 percent of net advances of the bank) up 35 percent YoY and wholesale advances down 16 percent YOY in line with planned portfolio recalibration, the bank said, adding total deposits reduced 1 percent YoY (down 8 percent QoQ).

Asset quality weakened with gross non-performing assets (NPA) as a percentage of gross advances rising 29 basis points QoQ to 3.62 percent, but net NPA declined 2 basis points QoQ to 2.05 percent as of March 2020.

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Provision coverage ratio at the end of March quarter improved to 64.04 percent, against 58.07 percent in Q3FY20, said the bank.

Other income during the quarter grew by 22.3 percent to Rs 500.54 crore, while pre-provision operating profit increased 36.6 percent to Rs 764.84 crore YoY.

For the financial year 2019-20, net profit degrew by 41.7 percent to Rs 505.67 crore, but net interest income jumped 43 percent to Rs 3,630 crore compared to the previous year.
First Published on May 7, 2020 05:24 pm