Mumbai, Oct 12 (PTI) Private sector lender RBL Bank on Monday reported a more than two-fold jump in its consolidated net profit to Rs 498.36 crore for the September quarter, propelled by RBI’s FCNR(B) scheme.
The subsidiary of UAE’s Emirates NBD, which had raised USD 3.4 billion in deposits from the diaspora under the scheme, reported a widening of interest margin courtesy of repayment of bulk deposits using the FCNR(B) money and also lent Rs 10,300 crore to depositors using the leverage provision in the scheme.
The bank’s managing director and chief executive, R Subramaniakumar, however, said that while the special scheme helped post 42 per cent growth in advances, loan growth excluding the scheme was 30 per cent.
The core net interest income
grew 37 per cent to Rs 2,131 crore during the reporting quarter on the back of the healthy loan growth and also the widening of the NIM to 4.61 per cent from 4.51 per cent in the year-ago period and 4.13 per cent in the quarter-ago period.
The other income grew 16 per cent to Rs 1,077 crore in the July-September period.
Total income rose to Rs 5,401.65 crore in the second quarter from Rs 4,441.59 crore in the second quarter of the last fiscal.
From a loan book perspective, secured retail grew 52 per cent on the back of the Rs 10,300 crore, while the corporate advances grew 60 per cent.
Subramaniakumar said it will be difficult to put a timeline by when it will exhaust deploying the FCNR(B) deposits but added that it may take over two years.
The bank’s focus areas for the future include increasing its presence in the India-Middle East trade corridor, upping the lending and also ticket size in the corporate segment and also introducing a wealth management offering.
He said that there has not been any adverse impact of the West Asia crisis on its asset book, and the lender will be watchful of the impact of the deficient monsoon on its retail book going ahead.
The gross non-performing assets ratio declined to 1.02 per cent, down by 1.31 per cent on-year. The bank said gross slippages declined to Rs 894 crore in Q2 from Rs 940 crore in Q1, adding that the credit cards and personal loans segment remained the biggest contributor to stressed assets.
Overall provisions jumped 53 per cent to Rs 766.5 crore, which was attributed to the FCNR(B) related lending and also the jump in the overall loan book by a senior official, who maintained that the leveraged loan provisioning impact is a one-time measure.
The bank’s overall capital adequacy ratio had stood at 30.1 per cent as on September 30.
RBL Bank shares closed 0.63 per cent up at Rs 420 a piece on the BSE on Monday, as against a 0.76 per cent correction on the benchmark. PTI AA MR
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