RBL Bank Q4 results: Net profit sinks 34% YoY, misses estimates; asset quality improves

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MUMBAI: right now reported a 34 per cent year-on-year decline in web revenue to Rs 75 crore, which was beneath analysts’ estimates. The decline in revenue was largely on account of upper provisioning within the quarter.
The lender’s web curiosity earnings within the quarter slumped 11 per cent on-year to Rs 906 crore, which was additionally beneath Road’s estimates.
Nevertheless, the lender reported an enchancment in asset high quality for the quarter. The financial institution’s gross non-performing belongings ratio was at 4.34 per cent as in opposition to 4.57 per cent on a proforma foundation 1 / 4 in the past. Equally, web NPA ratio stood at 2.12 per cent as in opposition to 2.52 per cent 1 / 4 in the past.
Working efficiency within the quarter was agency as pre-provision working revenue rose 17 per cent on-year to Rs 877 crore. Nevertheless, web curiosity margin contracted 70 foundation factors on-year to 4.2 per cent as a consequence of reversal of curiosity earnings on slippages.
The lender mentioned that slippages from the BB and beneath rated mortgage e-book have been at 10 per cent within the earlier monetary 12 months but it surely expects to revert to regular pattern of 5-7 per cent in 2021-22.
The asset high quality of enterprise loans deteriorated within the quarter to 1.85 per cent from 1.75 per cent 1 / 4 in the past on a professional forma foundation. On the similar time, the standard of retail books improved to 2.49 per cent from 2.82 per cent.

The lender registered a 26 per cent development in deposits to Rs 73,121 crore however mortgage e-book grew merely 1 per cent to Rs 58,623 crore. The muted mortgage development efficiency was largely because of the 12 per cent decline in wholesale e-book, whereas the retail mortgage e-book surged 13 per cent.
Shares of RBL Financial institution ended 0.9 per cent larger at Rs 182.9 on the Nationwide Inventory Alternate.

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