RBL Bank Announces Unaudited Financial Results for the Quarter Ended 30th June 2023

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.

 

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