RBL Bank slumps after Q2 PAT slides 24% YoY

RBL Bank dropped 14.29% to Rs 176.10 after the private lender's net profit declined in Q2FY25 quarter.

The bank's net profit fell 24.3% to Rs 222.52 crore on 20.1% increase in total income to Rs 4458.29 crore in Q2FY25 over Q2FY24. Profit before tax in Q2FY25 stood at Rs 291.56 crore, up 221.7% as against Rs 90.63 crore in Q2FY24. Net Interest Income (NII) for Q2 FY25 grew 9% YoY to Rs 1,615 crore. NIM for Q2 FY25 was 5.04% lower than 5.54% in the same quarter last year. For Q2FY25, operating profit grew 24% YoY to Rs 910 crore. NII was impacted by interest reversals from slippages and lower disbursals in microfinance.

Provisions (other than tax) and contingencies fell 3.4% to 618.33 crore in Q2 FY25 from Rs 640.35 crore in Q2 FY24.

Gross NPA ratio improved to 2.88% as against3.12% as at 30th Sep 2023, improved by 25 bps in a year. Net NPA ratio at 0.79% vs. 0.78% as at 30th Sep 2023, up 1 bps in a year. Provision Coverage Ratio including technical write offs was 89.35%. Credit cost was 80 bps for Q2 FY25. The total provisions of the bank including specific, general and contingent provision at 102% of GNPA.

As of 30th September 2024, the bank has 1,882 total touchpoints of which 550 are bank branches and 1,332 business correspondent branches. Of 1,332 BC branches, 297 are banking outlets. RBL Finserve, a 100% subsidiary of the bank, accounts for 1,024 business correspondent branches.

RBL Bank is a private sector bank. It offers specialized services under five business verticals namely: corporate banking, commercial banking, branch & business banking, retail assets and treasury & financial markets operations.

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