Mumbai, Jan 17 (PTI) Private sector lender RBL Bank on Saturday reported a 555 per cent jump in the December quarter net profit to Rs 214 crore, helped by a steep decline in provisions.
The lender, which
is set to receive a USD 3 billion fund infusion from Emirates NBD Bank, had reported a net profit of Rs 33 crore in the year-ago period and Rs 179 crore in the preceding June quarter.
Its core net interest income grew 5 per cent to Rs 1,657 crore on the back of a 14 per cent increase in advances and a 0.12 per cent growth in net interest margin to 4.63 per cent.
The bank's managing director and chief executive R Subramaniakumar said the tweaks in deposit rates and a shift in advances book helped expand the margins, and added that it is expected to widen further in the upcoming quarters despite the 0.25 per cent rate cut by the RBI.
The overall deposits grew 12 per cent during the quarter, he said, adding that on the lending front, it recorded an increase in unsecured book for the first time in many quarters.
The bank is pushing credit card sales, despite experiencing elevated stress in the segment, he said.
Subramaniakumar said he expects the stress on the credit card book to continue for two more quarters, while a senior bank official explained that the challenging macro environment is leading to difficulties for the bank and delaying resolutions on the older portfolio.
Credit card and personal loans portfolio contributed Rs 574 crore of the Rs 909 crore of overall fresh slippages during the quarter, the bank said, adding that the overall number stood at Rs 925 crore in the year-ago period.
The gross non-performing assets ratio improved to 1.88 per cent, down by 1.04 per cent, driven by higher write-offs and lower slippages.
On the NBD deal, the MD said the bank expects the fund infusion to come by July after approvals from all regulatory agencies and the government.
The lender added 18 branches, taking its overall network to 580 branches as of December-end.
The overall capital adequacy stood at 14.94 per cent, including the core buffer level at 13.45 per cent. PTI AA BAL
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