Net interest income grew by 21% YoY to Rs 1,246 crore in Q1 FY24 and net interest margin (NIM) improved to 4.84% in Q1 FY24 as compared to 4.36% posted in Q1 FY23.

Operating profit increased 22% to Rs 647 crore in Q1 FY24 as against Rs 529 crore reported in the same period last fiscal.

Provisions (other than tax) amounted to Rs 266 crore during the quarter, up by 5% from Rs 253 crore recorded in Q1 FY23.

The bank's return on assets (RoA) and return on equity (RoE) improved to 1.01% and 8.39%, respectively in the quarter ended 30 June 2023 from 0.75% and 6.28% in the quarter ended 30 June 2022.

On the asset quality front, gross non-performing assets (NPAs) stood at Rs 2,40,425 crore as on 30 June 2023 as against Rs 2,41,986 crore as on 31 March 2023 and Rs 2,53,687 crore as on 30 June 2022.

The GNPA ratio improved to 3.22% as on 30 June 2023 as against 3.37% as on 31 March 2023 and 4.08% as on 30 June 2022. The net NPA ratio improved to 1% as on 30 June 2023 as compared to 1.10% as on 31 March 2023 and 1.16% as on 30 June 2022.

Total deposits grew by 8% YoY to Rs 85,636 crore while net advances book increased 21% YoY to Rs 73,087 crore as on 30 June 2023.

CASA deposits increased by 12% YoY to Rs 31,927 crore as on 30 June 2023. CASA ratio improved to 31.4% as on on 30 June 2023 as compared to 33.3% reported in the same period last year.

Provision coverage ratio, including technical write offs, was 85.9% as of 30 June 2023 as against 85.3% as of 30 June 2022. Provision coverage ratio stood at 69.6% as on 30 June 2023.

Overall capital adequacy was 16.68% and Common Equity Tier 1 ratio was 15.05% as on 30 June 2023. Average liquidity coverage ratio came in at 129%.

Total customers grew to 13.65 million, an increase of 20.8% in the last financial year.

R Subramaniakumar, MD & CEO, RBL Bank said, “We have started FY24 with strong operating performance on all parameters. The advances growth was healthy with strong disbursals continuing in retail segment. We have further improved on our granular deposits, in line with our laid out strategy. Our revenue has grown faster than operating expenses driven by optimisation of few cost lines. Owing to this, the bank saw strong growth in Operating Profits and PAT.

We are confident of continuing this healthy performance in upcoming quarters. New initiatives undertaken in last financial year on new secured product launches and scale up of granular retail products have picked up pace. We have also seen traction in cross sell with existing customers contributing meaningfully now towards advances and deposits. Our asset quality parameters have remained stable. Our healthy capital position provides us with good runway for growth.”

Meanwhile, the bank's board approved issue of debt securities in one or more tranches on private placement basis, from time to time, upto Rs 3,000 crore, subject to the approval of the members.

Further, the board of directors approved re-appointment of Prakash Gupta as chief compliance officer of the bank with effect from 1 November 2023 on the recommendation of nomination & remuneration committee.

RBL Bank is one of India's leading private sector banks with an expanding presence across the country. The bank offers specialized services under five business verticals namely: corporate & institutional banking, commercial banking, branch & business banking, retail assets and treasury and financial markets operations. As of 30 June 2023, the bank has 520 bank branches and 1,115 business correspondent branches, of which 298 are banking outlets and 414 ATMs spread across 28 Indian states and Union Territories.

Shares of RBL Bank closed 0.91% higher at Rs 221.60 on the BSE.