RBL Bank Ltd., which made its debut on the Indian stock exchanges in August, has reported healthy financial earnings in the July to September quarter, aided by robust loan growth and a sizable improvement in net interest margin.
Net profit adjusted for RBL Bank’s investment in Utkarsh Microfinance Ltd stood at Rs 109 crore, 62 percent higher than the corresponding period a year ago, according to the bank’s investor presentation.
Total advances at the end of the quarter stood at Rs 24,875 crore, 44 percent higher than what it was at the same time last year. The bank’s net interest margin rose by 40 basis points on year to 3.4 percent.
The bank is on course to achieve its target of 30-35 percent compounded annual growth in advances, and might even do better than that rate this year, said Vishwavir Ahuja, managing director and chief executive officer of RBL Bank in an interview with BloombergQuint.
Another area of improvement is the bank’s cost to income ratio, which has fallen to 53.6 percent in the quarter ended September from 60 percent last year, and 55.3 percent in the previous quarter. The bank has a target to achieve a cost to income ratio of 50 percent by 2020.
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