Private sector lender RBL Bank on Thursday reported a 17.20 per cent dip in its December quarter net at Rs 121.61 crore on slower loan growth and a rise in operating expenses. The city-headquartered bank, which had witnessed RBI appointing an additional director last month which was followed by its long-standing head Vishwavir Ahuja proceeding on leave, however, sought to allay fears, terming October-December as a "turnaround" quarter.
Rajeev Ahuja, the interim chief executive and managing director, said the performance across businesses is looking good and the fourth quarter of FY22 and the time ahead will see it deliver better performance. He further said the bank had suffered challenges because of the second wave of COVID-19, and pointed to the September quarter's post tax profit of Rs 97.2 crore to assert that the third quarter has been a turnaround one and things are expected to improve.
Troubles on the credit card front -- where excessive concentration was flagged as a concern -- are behind, while microfinance and small business lending will also hit its trough in Q4, Ahuja said. In the reporting quarter, the bank reported an overall credit growth of 3 per cent, with a 6 per cent decline in retail advances and a 16 per cent jump in wholesale advances, about which it was circumspect for over a year because of loan reversals in the past.