Total Income rose 7.5% to Rs 2,758.98 crore in Q2 FY23 as against Rs 2,567.65 crore recorded in the corresponding quarter previous year.

The bank's profit before tax surged to Rs 270.85 crore in quarter ended 30 September 2022 from Rs 39.49 crore reported in the same period last year.

Net interest income jumped 16% year on year to Rs 1,064 crore in Q2 FY23, while net interest margin (NIM) increased to 4.55% in Q2 FY23 from 4.06% posted in Q2 FY22. Operating profit tumbled 26% to Rs 512 crore in Q1 FY23 as against Rs 691 crore reported in Q2 FY22.

Provisions (other than tax) in Q2 FY23 amounted to Rs 241 crore, down 63% as compared to Rs 651 crore recorded in Q2 FY22. Provision coverage ratio improved to 67.8% in Q2 FY23 as against 61.7% in Q2 FY22.

On the asset quality front, gross non-performing assets (NPAs) stood at Rs 2,456.60 crore as on 30 September 2022 as against Rs 2,536.87 crore as on 30 June 2022 and Rs 3,130.93 crore as on 30 September 2021.

The gross ratio stood at 3.80% as on 30 September 2022 as against 4.08% as on 30 June 2022 and 5.40% as on 30 September 2021. The net NPA ratio stood at 1.26% as on 30 September 2022 as against 1.16% as on 30 June 2022 and 2.14% as on 30 September 2021.

The bank's deposits increased 5% YoY to Rs 79,404 crore as at 30 September 2022 as against Rs 75,588 crore as 30 September 2021. The bank's advances (net) grew 12% YoY to Rs 62,942 crore as on 30 September 2022 as against Rs 56,009 crore in 30 September 2021. CASA deposits rose 7% YoY to Rs 28,718 crore in the quarter ended 30 September 2022 from Rs 26,734 crore as of 30 September 2021. CASA ratio improved to 36.2% as on 30 September 2022 as compared to 35.4% as at 30 September 2021.

Net slippages aggregated to Rs 498 crore for the quarter ended 30 September 2022 as against Rs 747 crore posted in the same quarter a year ago. Net slippage ratio stood at 0.83% as on 30 September 2022 as compared to 0.46% as of 30 June 2022 and 1.32% as at 30 September 2021.

Commenting on the performance, R Subramaniakumar, MD & CEO of RBL Bank said “We have completed H1 FY23 on a satisfactory note on all fronts. H1FY23's profitability over H1FY22 is substantially improved. The advances growth is starting to gain momentum and we expect to see this continue. Granular deposit growth is picking up momentum and asset quality continues to be stable, with GNPA also trending down over earlier periods. Going forward our focus would be to consolidate, leverage and optimize our existing platform to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more secured retail products by launching them in the next few months.”

RBL Bank is one of India's fastest growing private sector banks with an expanding presence across the country. As of 30 September 2022, the bank has 507 bank branches and 1,204 business correspondent branches, of which 289 are banking outlets. RBL Finserve (“RBL Finserve”), a 100% subsidiary of the bank, accounts for 821 business correspondent branches.

Shares of RBL Bank slipped 4.17% to Rs 121.90 on the BSE.