RBL Bank’s Net Profit Beats Estimates, Provisions Double
The bank posted a net profit of Rs 141 crore during the first quarter of FY18.
RBL bank Ltd.’s profit surpassed analyst estimates in the April-June quarter driven by a strong net interest income even as provisions for non-performing assets doubled.
Net profit rose 44.9 percent to Rs 141 crore compared to the same period last year, the lender said in an exchange filing. The consensus estimate of analysts tracked by Bloomberg stood at Rs 127 crore.
The bank’s core income – or the net interest income – grew 54.7 percent to Rs 378.4 crore on a year-on-year basis. The net interest margin (NIM) expanded by 74 basis points to 3.54 percent in the same period.
Other income during the first quarter of current fiscal increased by 53.3 percent, compared to the corresponding period in previous fiscal.
The bank’s asset quality worsened sequentially. Gross non-performing assets (NPA), as a percentage of total advances, increased to 1.46 percent from 1.2 percent while net NPAs increased to 0.81 percent from 0.64 percent last quarter. The lender’s provisions jumped 122.9 percent on a sequential basis to Rs 95 crore.