RBL Bank has posted a 34% year-on-year growth in net profit for Q3 FY23 to ₹209 crore, led by healthy loan growth and stable asset quality.
The bank’s net advances were up 15% YoY and 6% QoQ to Rs 66,684 crore as of December 31. Retail loans increased 13% yoy and 7% sequentially to ₹34,977 crore.
“We have had another quarter of improvement in operating performance and we are confident that this trend will continue in the coming quarters. Our initiatives over the last six months on launching new products and expanding granular retail products are also starting to bear fruit,” said CEO and CEO R Subramaniakumar, adding that as these products become more expand, growth will be broader. .
The bank’s net interest income was 14 per cent higher at Rs 1,148 crore. The net interest margin (MIN) for the quarter was 4.74 percent.
On the post-earnings call, Subramaniakumar said the cost of deposits, which is at 12.2 percent, is expected to rise. “But, because of our interest that we’re getting from some of the products, we don’t see an impact on NIM as we go forward. Rather, we are of the opinion that the NIM trend will move upwards from now on,” he said.
Total deposits grew 11% yoy to Rs 81,746 crore at end-December, led by 18% growth in low-cost CASA deposits to Rs 29,948 crore, accounting for 36.6% of deposits totals.
The bank’s gross delinquency ratio improved to 3.6 percent from 3.8 percent a quarter ago and 4.84 percent a year ago. The net NPA ratio of 1.18% was also better than 1.26% in the prior quarter and 1.85% in the same period last year.
On the appointment of a CFO, Subramaniakumar said that the bank has shortlisted the candidates, discussions are underway and the bank will proceed as soon as possible.
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