RBL Bank Q2 results: Net profit falls 24% YoY to Rs 222.52 crore

RBL Bank

RBI Bank on October 19 reported a 24.3 percent on-year fall in its net profit to Rs 222.52 crore in the second quarter of financial year 2025. Sequentially , net profit fell 40.11 percent.

In the July-September quarter, net interest income of the bank grew 9 percent on-year to Rs 1,615 crore, from Rs 1,475 crore in a year ago period. However, net interest income have a dip of 5 percent.

"NII impacted by interest reversals from slippages and lower disbursals in microfinance," bank said in an investor presentation.

Asset quality

Gross non-performing asset (NPA) ratio was 2.88 percent as on September 30, 2024, as compared to 2.69 percent as on June 30, 2024, and 3.12 percent on September 30, 2023.

Net NPA ratio stood at 0.79 percent as on September 30, 2024, as compared to 0.74 percent as on June 30, 2024, and 0.78 percent on September 30, 2023.

In absolute terms, gross NPA of the bank stood at Rs 2,581 crore as on September 30, 2024, as compared to Rs 2,378 crore as on June 30, 2024, and Rs 2,441 crore as on September 30, 2023.

Net NPA in absolute terms increased to Rs 698 crore in the July-September quarter, as compared to Rs 639 crore in a quarter ago period, and Rs 594 crore in a year ago period.

Of the total gross NPA, wholesale and microfinance loans have a highest share of Rs 941 crore and Rs 549 crore, respectively, in the reporting quarter.

Provision Coverage Ratio including technical write offs was 89.35 percent, as per press release. Credit cost for H1 FY25 was 140 basis points (bps), it was 80 bps for Q2 FY25. The total provisions of the Bank including specific, general and contingent provision at 102 percent
of gross NPA.

"Provisions increase driven by higher slippages in credit cards and microfinance. Provisioning in Q2 last year included Rs. 252 crore of contingent provisions still held by the Bank," bank said in an investor presentation.

Deposit and advances

In the reporting quarter,  RBL Bank have seen a 20.25 percent rise in the deposits to Rs 1.08 lakh crore, from Rs 89,780 crore in a year ago period. In April-June quarter of this year, bank had reported a deposit of Rs 1.01 lakh crore.

Of the total deposits in July-September quarter, major share is of term deposit, which was followed by savings account deposit and current account deposit.

Term deposits of the bank stood at Rs 71,735 crore of total deposits, savings account deposit stood at Rs 19,661 crore, and current account deposit of Rs 16,563 crore, as per investor presentation of bank.

On the advances front, the lender had reported an increase of 15.14 percent on-year in July-September quarter to Rs 87,882 crore. In a year ago period, advances of the bank stood at Rs 76,324 crore, and Rs 86,704 in a quarter ago period.

Of the total advances, wholesale advances stood at Rs 54,723 crore, and retail advances of Rs 33,160 crore in the reporting quarter.