RBL Q1 Results: Net profit up 43% on higher interest income

Net profit for the quarter amounted to Rs 288 crore compared to Rs 201 crore in the same period a year ago.

” Our revenue has grown faster than operating expenses driven by the optimisation of a few cost lines. Owing to this, the Bank saw strong growth in Operating Profits and PAT” said R Subramaniakumar, MD&CEO, RBL Bank.

Net interest income rose 21% during the quarter to Rs 1,246 crore from Rs 1,028 crore in the same period a year ago. Cost to Income was 66.5% compared to 67.8% for Q1FY23, a release by the bank said.

“Our asset quality parameters have remained stable,” Subramaniakumar said. The gross NPA ratio improved to 3.22% from 4.08% as of 30th June 2022, lower by 87 bps in a year

Net advances book grew 21% year-on-year and 4% sequentially to Rs 73,087 crore. Retail advances book grew 34% YoY and 8% sequentially to Rs 40,866 crore. Total deposits grew 8% year-on-year Rs 85,636 crore

Provision Coverage Ratio including technical write offs was 85.9% vs 85.0% as of 31st March 2023. The bank may not need additional capital as its ratios are well above the prescribed regulatory requirement, indicated Subramaniakumar. Overall capital adequacy was much above the regulatory requirement at 16.68% and the Common Equity Tier 1 ratio was 15.05%, he saidThe bank has proposed to raise debt of Rs 3000 crore through a private placement subject to the approval of the members at the annual general meeting to be held on August 24, according to a filing made at the stock exchanges.

The bank is looking at growing its deposit base by 18-20% in the current financial year and has targeted a credit growth of 20-22% driven largely by the retail book.