RBL Bank’s net interest income (NII) grew 21% on-year and 5% quarter-on-quarter to ₹1,546 crore, while the net interest margin (NIM) stood at 5.52% in the December quarter.
Private sector lender RBL Bank on Friday reported a net profit of ₹233 crore for the third quarter ended December 2023, mainly on the back of a rise in net interest income (NII). It is higher by 11% as compared to ₹208.97 crore in the same quarter last year.
NII, the difference between the interest earned by a bank and the interest paid, grew 21% year-on-year and 5% quarter-on-quarter to ₹1,546 crore, while the net interest margin (NIM) stood at 5.52% as against 5.27% in the same quarter last fiscal.
The lender’s operating profit surged 35% on-year and 5% QoQ to ₹765 crore.
The Gross Non-Performing Assets (NPA) ratio of the bank improved to 3.12% on-year during the quarter under review, against 3.61% during the same period last financial year. The Net NPA ratio also improved to 0.80% during Q3 FY24, against 1.18% in Q3 FY23.
The lender informed the exchanges that its net advances in the December quarter grew 20% on-year and 5% sequentially to ₹79,949 crore while total deposits grew about 13% YoY in the quarter to ₹92,746 crore.
“Our advances and deposits have experienced robust growth with granularity of both sides of balance sheet catching pace. As per our plan, the profitability growth has outpaced balance sheet growth. Notably, our execution of strategic goals, have contributed to our performance. We remain well capitalised to take advantage of opportunities for growth,” said MD and CEO, R Subramaniakumar RBL Bank.
In line with the Reserve Bank of India’s (RBI) diktat on alternative investment funds (AIFs), RBL Bank made a provision of ₹115 crore.
Excluding this contingent provision, the net profit grew 53% YoY and 9% QoQ to ₹319 crore, the bank said.
Shares of RBL Bank Ltd settled 3.37% lower at ₹260.75 apiece on the NSE. The stock has fallen 11% in the last five trading sessions.