BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Despite in line operating metrics with pre provision operating profit growth at 17% YoY, RBL Bank Ltd. reported a net loss of Rs 4.6 billion in Q1 FY22 led by sharp rise in provisions owing to elevated slippages at 9%, increased in provision coverage ratio from 52% to 61%, and high write-offs from credit card book.
This, along with additional Covid-19 provisions of Rs 2.4 billion (0.4% of advances) resulted in credit costs of 10% for the quarter against 4-5% in the previous two quarters.
Majority (97%) of slippages were from retail book, mainly micro finance institution, credit card, and business loans.
Unlike peers, RBL Bank did not go for restructuring of its unsecured MFI/CC loans, with limited overall restructuring at 1.9% of advances.
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