RBL Bank has announced its financial results for the fourth quarter of FY23.
RBL Bank posts a net profit of Rs 883 crore for the whole of FY23 compared to a loss of Rs 75 crore in the prior year period, which also witnessed a change in management within of the company after regulatory measures
Private sector lender RBL Bank on Saturday reported a 37% growth in March quarter 2023 net profit to Rs 271 crore on lower provisions. For the full FY23, the bank recorded a net profit of Rs 883 crore compared to a loss of Rs 75 crore in the prior year period, which also witnessed a change in management within the company after regulatory measures.
In the quarter ended March 31, its core net interest income increased by 7% to Rs 1,211 crore on the back of a 17% increase in advances and a marginal widening of net interest margin at 5.04%.
Its Managing Director and Chief Executive Officer, R Subramaniakumar, explained that NII’s growth has been limited as, in the prior year period, it had to acknowledge Rs 72 crore due on restructured loans in the interest income line on the recommendation of the auditors, which increased the base.
Without this element, the growth of the NII would have been 12%, he said.
Other income rose 32% to Rs 674 crore for the quarter.
The bank is targeting 20% ​​growth in overall advances in FY24, which will be helped by 22% growth to be achieved through retail advances, he said, adding that over the three next few years, it will increase the retail component. 60% compared to the current 54%.
Much of the growth in retail advances will come from secured advances, rather than unsecured advances like credit cards, which is why they fall under the regulatory lens.
Subramaniakumar said the bank currently has all the necessary products, including housing, home loans and auto loans, which will help increase the share of secured advances.
For the March quarter, its new gross slippages amounted to Rs 681 crore from Rs 619 crore a year ago, but Subramaniakumar said the focus on recoveries helped limit net slippages.
The gross non-performing assets ratio improved to 3.37% from 4.40% a year ago and 3.61% at the end of the previous December quarter. It set aside Rs 235 crore as provisions for the quarter, which was 41% lower than the year-ago period, and was a major contributing factor to the profit growth.
Credit costs were 1.49% for the full year and Subramaniakumar said the bank was aiming for a figure between 1.5 and 2% in FY24. He said said the bank had “bounced back” through teamwork and management, and that the bank’s board had done its job of helping the institution realize its true potential.
The bank’s overall capital adequacy stood at 16.9% as of March 31, with a base cushion of 15.3%.
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