RBL Bank Swings to Q1 Loss as Provisions Nearly Triple

Last Updated: Aug 08, 2022 - 06:43 pm 56.7k Views
Listen icon

RBL Bank has slipped into a loss for the first quarter through June 2021 from a profit a year earlier after it set aside almost thrice the amount than before to cover for possible bad loans.

The private-sector bank posted a standalone net loss of Rs 459.5 crore for the April-June period compared with a net profit of Rs 1,412.2 crore a year earlier.

Net interest income—the difference between interest earned and paid—fell 7% to Rs 970 crore while the net interest margin shrank to 4.36% from 4.85% a year earlier.

The bank’s provisions to cover for potential non-performing assets (NPAs) jumped to Rs 1,425.67 crore from Rs 500 crore in the corresponding period of the last financial year.


Other key details:

1. Operating profit for Q1 grew 17% from a year earlier to Rs 807 crore.

2. Total deposits rose 21% year-on-year to Rs 74,471 crore while the low-cost CASA deposits grew 35%

3. Retail deposits jumped 47% to Rs 29,505 crore but retail advances grew only 7% to Rs 32,071 crore.

4. The bank’s overall capital adequacy ratio is at 17.2%, slightly above the minimum norm of 15%.

5. Asset quality worsened as gross NPA ratio came in at 4.99% versus 3.45% a year earlier.


Management Commentary: 

RBL Bank MD and CEO Vishwavir Ahuja said the lender’s revenue and operating profit “held up well” during the quarter.

However, the effect of the second wave of the COVID-19 pandemic on the asset quality was “rather severe and different from the first wave” given the nature of the bank’s businesses, he said.

Ahuja also said that economic activity and growth revival are now visible.As a result, the bank decided to increase its provisions to preparefor normalized levels of business.

The bank is also ramping up its physical and digital presence as well as expanding its secured retail assets business in a bid to improve its financial performance, he added.


Also Read: Quarterly Results - RBL Bank and PNB Bank



How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Outlook on Copper - 01 December 2023

Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.

Swing Trading Stocks: Week of 04 December 2023

Swing Trading Stocks for the Week

Weekly Market Outlook for 04 December to 08 December

Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.