Godavari Biorefineries Q2 Results: Net Loss Increases to ₹75 Crore in Q2
RBL Bankswings to Q1 loss as provisions nearly triple
Last Updated: 5th April 2022 - 11:13 am
RBL Bank has slipped into a loss for the first quarter through June 2021 from a profit a year earlier after it set aside almost thrice the amount than before to cover for possible bad loans.
The private-sector bank posted a standalone net loss of Rs 459.5 crore for the April-June period compared with a net profit of Rs 1,412.2 crore a year earlier.
Net interest income—the difference between interest earned and paid—fell 7% to Rs 970 crore while the net interest margin shrank to 4.36% from 4.85% a year earlier.
The bank’s provisions to cover for potential non-performing assets (NPAs) jumped to Rs 1,425.67 crore from Rs 500 crore in the corresponding period of the last financial year.
Other key details:
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Operating profit for Q1 grew 17% from a year earlier to Rs 807 crore.
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Total deposits rose 21% year-on-year to Rs 74,471 crore while the low-cost CASA deposits grew 35%
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Retail deposits jumped 47% to Rs 29,505 crore but retail advances grew only 7% to Rs 32,071 crore
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The bank’s overall capital adequacy ratio is at 17.2%, slightly above the minimum norm of 15%.
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Asset quality worsened as gross NPA ratio came in at 4.99% versus 3.45% a year earlier.
Management commentary:
RBL BankMD and CEOVishwavir Ahuja said the lender’s revenue and operating profit “held up well” during the quarter.
However, the effect of the second wave of the COVID-19 pandemic on the asset quality was “rather severe and different from the first wave” given the nature of the bank’s businesses, he said.
Ahuja also said that economic activity and growth revival are now visible.As a result, the bank decided to increase its provisions to preparefor normalized levels of business.
The bank is also ramping up its physical and digital presence as well as expanding its secured retail assets business in a bid to improve its financial performance, he added.
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5paisa Research Team
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