RBL Bank Q4 results: Net profit drops by 80% on sharp rise in provisions; asset quality stabilises

RBL Bank’s net interest income for the quarter stood at ₹1,563 crore as compared to ₹1,599 crore in the previous year's similar quarter, a drop of 2.3% YoY and 1.3% QoQ. This was largely due to poor growth in the interest income at 4% YoY to ₹3,475 crore. Whereas the interest expenses for the quarter grew by 10% YoY to ₹1,912 crore for the quarter.

On the bottom line front, the net profit for the quarter dropped by 80% YoY to ₹68.7 crore as compared to ₹352 crore in the previous year's similar quarter. The sharp drop in the bottom line was mainly due to a 89% jump in the provisions at ₹785 crore for the quarter.

On the asset quality front, the bank’s GNPA and NNPA ratios stood at 2.60% and 0.29% respectively, slightly lower than the previous year's similar quarter.

Bank witnessed strong growth in the advances for the quarter at 10% YoY to ₹92,618 crore. The retail segment, which contributes a majority of the lending portfolio, grew by 13% YoY to ₹55,703 crore. Overall, Deposits grew by 7% YoY to ₹110,944 crore, and the total business crossed the ₹2 lakh crore mark for the first time.

Along with the quarterly results, the board recommended a dividend of ₹1 per equity share.