RBL Bank has declared its Q4 FY23 financial results.
RBL Bank posts a net profit of Rs 883 crore for full FY23, as against a loss of Rs 75 crore in the year-ago period, which also saw a management change in the firm following regulatory actions.
Private sector lender RBL Bank on Saturday reported a 37 per cent rise in net profit for the March 2023 quarter to Rs 271 crore on lower provisions. For the full FY23, the bank posted a net profit of Rs 883 crore as against a loss of Rs 75 crore in the year-ago period, which also saw a management change in the firm following regulatory actions.
For the quarter ended March 31, its core net interest income rose 7 per cent to Rs 1,211 crore, led by a 17 per cent growth in advances and a marginal increase in net interest margin at 5.04 per cent.
Its managing director and chief executive officer R Subramaniakumar pointed out that NII’s growth has been limited as, in the year-ago period, it had to recognize Rs 72 crore on account of restructured loans in the interest income line on the recommendation of auditors, which Extended base.
He said that excluding this item, the growth rate of NII would have been 12 per cent.
Other income grew 32 percent to Rs 674 crore for the quarter.
The bank is targeting 20 per cent growth in overall advances in FY2024, which will be aided by 22 per cent growth in retail advances, he said, adding that over the next three years, it will increase the retail component. 60 percent from the current 54 percent.
A major portion of the growth in retail advances would come from secured advances rather than unsecured advances like credit cards, which had been due to come under the regulatory lens.
Subramaniamkumar said the bank currently has all the essential products in its bouquet, including housing, loan against property and auto loans, which will help increase the share of secured advances.
For the March quarter, its gross fresh slippages stood at Rs 681 crore as against Rs 619 crore in the year-ago period, but Subramaniakumar said focus on recovery helped limit net slippages.
The gross non-performing assets ratio rose to 3.37 per cent from 4.40 per cent in the year-ago period and stood at 3.61 per cent at the end of the December quarter. It set aside Rs 235 crore as provision for the quarter, which was 41 per cent lower than the year-ago period, and was a key factor in helping profit growth.
Credit cost for the full fiscal came in at 1.49 per cent and Subramaniakumar said the bank is targeting to get the number between 1.5-2 per cent in FY24. He said the bank has “bounced back” courtesy of teamwork and management, and that the bank’s board has accomplished its task of helping the institution deliver on its true potential.
The bank’s overall capital adequacy as on March 31 stood at 16.9 per cent, with a core buffer of 15.3 per cent.
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