The Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter ended 30th June 2023 at its meeting held on Saturday, 22nd July 2023.
Results Summary for Q1FY24
Strong Operating Performance:
- Net Profit grew 43% YOY & 6% QOQ to `288 crore
- ROA of 1.01% vs 1.00% for Q4 FY23
- Operating profit grew 22% YOY & 9% QOQ to `647 crore
- Total Revenue grew 18% YOY and 2% QOQ to `1,932 crore
- Net Interest Income grew 21% YOY and 3% QOQ to `1,246 crore; NIM was 4.84% vs 4.36% for Q1 FY23
- Other Income grew 12% YOY and 2% QOQ to `685 crore
- Cost to Income was 66.5% vs 68.5% for Q4 FY23 and 67.8% for Q1 FY23
CASA and Deposits Growth:
- CASA grew 12% YOY and 1% QOQ to `31,927 crore. CASA ratio at 37.3% vs. 36.0% as at 30th June 2022
- Total deposits grew 8% YOY and 1% QOQ to `85,636 crore
- Retail Deposits (as per LCR definition) grew 19% YOY and 3% QOQ to `37,400 crore
Strong Advances Growth:
- Net Advances book grew 21% YOY and 4% sequentially to `73,087 crore
- Retail Advances book grew 34% YOY and 8% sequentially to `40,866 crore
- Retail disbursement for Q1 FY 24 at `4,100 crore
- Retail: Wholesale mix at 56:44
- Housing loans grew 77% YOY; Rural vehicle finance grew 194% YOY
- Bank has started disbursals of new retail asset products like Gold loan, Working capital/ term loan for MSME, Vehicle loans etc. in current quarter
- 6.3 Lakhs credit cards issued in this quarter; Total cards outstanding at 4.6mn
- Total customers at 13.65mn vs 11.30mn in Q1 FY23, an increase of 2.35mn
Well capitalized with sound liquidity:
- Overall capital adequacy was 16.68% and Common Equity Tier 1 ratio was 15.05%
- Average Liquidity Coverage Ratio at 129%
Asset quality:
- Gross NPA ratio improved to 3.22% vs. 3.37% as at 31st March 2023 and 4.08% as at 30th June 2022, improved by 87 bps in a year
- Net NPA ratio improved to 1.00% vs. 1.10% as at 31st March 2023 and 1.16% as at 30th June 2022, improved by 16 bps in a year
- Provision Coverage Ratio including technical write offs was 85.9% vs 85.0% as at 31st March 2023
- Credit cost 39 bps against 29 bps in Q4 FY 23 and 43 bps in in Q1 FY23
Network
- As of 31st March 2023, the Bank has 520 bank branches and 1,115 business correspondent branches, of which 298 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 795 business correspondent branches
Key Financials:
| ` in crore | Q1 FY24 | Q1 FY23 | YoY | Q4 FY23 | QoQ | FY23 | FY22 |
| Net Interest
Income |
1,246 | 1,028 | 21% | 1,211 | 3% | 4,451 | 4,027 |
| Other Income | 685 | 614 | 12% | 674 | 2% | 2,489 | 2,341 |
| Net Total Income | 1,932 | 1,641 | 18% | 1,885 | 2% | 6,941 | 6,367 |
| Operating Profit | 647 | 529 | 22% | 594 | 9% | 2,202 | 2,745 |
| Provisions (other
than tax) |
266 | 253 | 5% | 235 | 13% | 1,022 | 2,860 |
| Net profit (after tax) | 288 | 201 | 43% | 271 | 6% | 883 | (75) |
| ` in crore | June 30,
2023 |
June 30,
2022 |
YoY | March 31, 2023 | QoQ |
| Advances (Net) | 73,087 | 60,270 | 21% | 70,209 | 4% |
| Retail Advances (Net) | 40,866 | 30,514 | 34% | 37,778 | 8% |
| Deposits | 85,636 | 79,216 | 8% | 84,887 | 1% |
| CASA | 31,927 | 28,526 | 12% | 31,717 | 1% |
| Investments (Net) | 29,171 | 27,537 | 6% | 28,875 | 1% |
Key ratios:
| Particulars (in %) | Q1 FY24 | Q1 FY23 | Q4 FY23 | FY23 | FY22 |
| Net Interest Margin | 4.84 | 4.36 | 5.01 | 4.67 | 4.45 |
| Cost to Income | 66.5 | 67.8 | 68.5 | 68.3 | 56.9 |
| Return on Assets | 1.01 | 0.75 | 1.00 | 0.83 | (0.07) |
| Return on Equity | 8.39 | 6.28 | 8.11 | 6.69 | (0.60) |
| Gross NPA | 3.22 | 4.08 | 3.37 | 3.37 | 4.40 |
| Net NPA | 1.00 | 1.16 | 1.10 | 1.10 | 1.34 |
| PCR incl. Technical Write-
offs |
85.9 | 85.3 | 85.0 | 85.0 | 83.4 |
| PCR | 69.6 | 72.5 | 68.1 | 68.1 | 70.4 |
Commenting on the performance, Mr. R Subramaniakumar, MD&CEO, RBL Bank said “We have started FY24 with strong operating performance on all parameters. The advanced growth was healthy with strong disbursals continuing in the retail segment. We have further improved on our granular deposits, in line with our laid-out strategy. Our revenue has grown faster than operating expenses driven by the optimization of a few cost lines. Owing to this, the Bank saw strong growth in Operating Profits and PAT. We are confident
of continuing this healthy performance in upcoming quarters. New initiatives undertaken in last Financial Year on new secured product launches and scale-up of granular retail products have picked up pace. We have also seen traction in cross-sell with existing customers contributing meaningfully now towards advances and deposits. Our asset quality parameters have remained stable. Our healthy capital position provides us with good runway for growth.”