Private sector lender RBL Bank has clocked a 41 per cent year-on-year (YoY) growth in net profit at Rs 267.1 crore for the first quarter ended June 30, 2019, helped by rise in net interest income and other income.
"The Mumbai-headquartered lender reported a net profit of Rs 190.04 crore in the same quarter last year," RBL Bank said in a filing to the Bombay Stock Exchange.
RBL Bank's net interest income (NII), which is the difference between interest earned on loans and that paid on deposits, grew 47.88 per cent to Rs 817.32 crore in April-June quarter of FY20, compared to Rs 552.7 crore in the corresponding quarter.
The other income (non-interest income), which includes core fee income, rose by 47.62 per cent to Rs 481.21crore in Q1FY20 against Rs 325.97 crore in Q1FY19.
The operating profit of the bank increased by 43 per cent to Rs 618.8 crore during the June quarter of 2019-20, as compared to Rs 432.3 crore in the same period of 2018-19.
The provisions and contingencies of the bank increased to Rs 213.18 crore from Rs 140.35crore in the year-ago period.
As on June 30, net advances grew by 35 per cent to Rs 56,836 crore from Rs 2,198.1 crore in the year-ago period. The bank's deposit rose 35 per cent y-o-y to Rs 60,810 crore.
Commenting on the Q1 performance, Vishwavir Ahuja, MD & CEO, RBL Bank said, "The Bank has had a good quarter of strong performance and has continued to maintain its growth momentum and improvement in operating metrics. However, given the difficult environment we do expect to face some challenges on some of our exposures in the near term. At the same time, given the strong momentum in our businesses, we do expect to maintain a healthy profitable growth over the coming quarters."
RBL Bank's asset quality improved during June quarter, with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - falling to 1.38 per cent versus 1.40 per cent in the year-ago quarter. Net NPA declined to 0.65 per cent during June quarter as compared to 0.75 per cent in the corresponding quarter last year.
In a separate development, the bank said it has allotted 16.64 lakh equity shares of Rs 10 each under the employee stock option plan (ESOP) of the bank. Post this allotment, the bank's issued and paid-up share capital has increased to 42.77 crore equity shares of Rs 10 each.
Despite strong Q1, RBL Bank shares closed 13.71 per cent lower at Rs 500.35 apiece on the Bombay Stock Exchange on Friday.
Edited by Chitranjan Kumar