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RBL Bank was a mixed bag in Q3 as loan growth takes care of topline growth but earnings miss estimates due to deterioration in asset quality. In an interview with CNBC-TV18, Vishwavir Ahuja, MD & CEO of RBL Bank spoke about the results and his outlook for the company.
If loan growth comes above 35 percent (35 percent in Q2), net interest margin above 3.4 percent (3.74 percent) and gross non-performing assets below 1.6 percent (1.44 percent) then that will be considered positive by the Street.
All parts of balancesheet on the loan side have done well in the first quarter, said Romesh Sobti, MD & CEO, IndusInd Bank.
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
In an interview to CNBC-TV18, Vishwavir Ahuja, MD & CEO, RBL Bank spoke about the results and his outlook for the company. "Our general long-term guidance is to grow between 30 percent and 35 percent every year and based on our vision 2020, indications that we gave last year at the time of initial public offering (IPO) that up until 2020 we should try and maintain annual growth rate in that range", he said.
Speaking to CNBC-TV18, Vishwavir Ahuja, RBL Bank‘s Managing Director and Chief Executive Officer, said unexpectedly high loan growth in the third quarter had put it on track to meet its annual guidance of 30-35 percent.
The bank is well diversified in its portfolio, which has helped mitigate risks, said Vishwavir Ahuja, MD & CEO of RBL. Alongwith that the bank has tried avoiding lending to risker assets like infrastructure in last 3-4 years.
Vishwavir Ahuja of RBL Bank said that over the last several years, the various investments we have made across the platforms in terms of tech products and services have started paying back handsomely.