|
RBL Bank has posted net loss of Rs 459.47 crore in Q1FY2022.
Interest income has declined 9.36% to Rs 2,025.83 crore. Interest expense fell
11.51% to Rs 1,056.33 crore. Hence net interest income fell 6.90% to Rs 969.50
crore.
With other income showing a rise of 108.40% to Rs 694.67
crore, net total income increased 21.06% Rs 1,664.17 crore. Operating expenses
rose 25.09% to Rs 856.72 crore. As a result, profit before provisions rose
17.07% to Rs 807.45 crore. Provisions & Contingencies increased 185.04% to
Rs 1425.67 crore, Profit before tax reported loss of Rs 618.22 crore compared
to profit of Rs 189.56 crore.
Provision for tax was credit of Rs 158.75 crore, compared to
debit of Rs 48.34 crore. Net Profit reported loss of Rs 459.47 crore compared
to profit of Rs 141.22 crore.
Book value per share has improved to
Rs 204.0 per share at end June 2021, while adjusted book value (adjusting for
NNPA and 10% of restructured assets) stood at Rs 183.7 per share.
Higher slippages of loans weigh on asset quality:
Gross
NPA ratio rose to 4.99% from 4.34% in Q4FY21. Net NPA ratio improved to 2.01% from
2.12% in Q4FY21.
The fresh slippages
of loans was elevated at Rs 1342 crore, while recoveries of bad debt stood at
Rs 116 crore, upgrades at Rs 157 crore and write offs at Rs 759 crore.
Restructured loan
book rose to 1.80% end June 2021 from 1.41% end March 2021 and 0.09% end June
2020.
Securities receipts
book stood at 0.30% end June 2021.
Credit cost jumped to
255 bps in Q1FY2022 from 113 bps in the previous quarter and 91 bps in the
corresponding quarter last year.
Provision
Coverage Ratio at 76.3% against 72.2% in Q4FY21 and 70.5% in Q1FY21, up 5.8%
yoy
The bank
is well capitalized with sound liquidity. Overall capital adequacy was at 17.2%
with Common Equity Tier 1 ratio of 16.1% at the end of Q1FY22.
Average
Liquidity Coverage Ratio at 134% for Q1FY22
|
Asset Quality
Indicators: RBL Bank
|
|
|
Jun-21
|
Mar-21
|
Dec-20
|
Sep-20
|
Jun-20
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
2911.28
|
2601.53
|
1050.21
|
1911.72
|
1992.07
|
12
|
46
|
|
Net NPA (Rs Crore)
|
1137.17
|
1241.35
|
402.46
|
775.77
|
932.68
|
-8
|
22
|
|
% of GNPA
|
4.99
|
4.34
|
1.84
|
3.34
|
3.45
|
65
|
154
|
|
% of NNPA
|
2.01
|
2.12
|
0.71
|
1.38
|
1.65
|
-11
|
36
|
|
Provision coverage
ratio %
|
76.30
|
72.20
|
86.40
|
74.80
|
70.46
|
410
|
584
|
|
% CRAR - Basel III
|
17.15
|
17.50
|
17.33
|
16.09
|
16.14
|
-35
|
101
|
|
% CRAR - Basel III -
Tier I
|
16.10
|
16.60
|
17.10
|
15.10
|
15.20
|
-50
|
90
|
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
|
Business highlights:
Total
deposits grew 21% yoy and 2% qoq to Rs 74471 crore. CASA grew 35% yoy and 8%
qoq to Rs 25,071 crore. CASA ratio improved to 33.7% vs. 30.1% in Q1FY21. Retail
Deposits (as per LCR definition) grew 47% yoy and 8% qoq to Rs 29505 crore.
Advances
book at Rs 56527 crore was flat yoy. Retail advances grew 7% yoy to Rs 32071
crore. Retail: Wholesale mix at 57:43.
Wholesale loan book
declined 9% to Rs 24456 crore end June 2021 driven by 7% fall in corporate
banking to Rs 18464 crore and 12% dip in the commercial banking book to Rs 5992
crore end June 2021.
The yield on
wholesale loan book declined to 6.7% from 8.5%, while retail loan yield eased
to 14.7% from 17%.
Net Interest Margin
improved on sequential basis to 4.4% in Q1FY2022 from 4.2% in Q4FY2021, while
remained lower from 4.9% in Q1FY2021.
Cost of funds
improved to 5.3% in Q1FY2022 from 5.5% in Q4FY2021 and 6.3% in Q1FY2021.
Yield on advances
rose to 11.6% in Q1FY2022 from 11.2% in Q4FY2021, while eased from 13.0% in
Q1FY2021
Investment book of the
bank increased 27% to Rs 25314 crore end June 2021.
The
bank added 6 branches during Q1FY22 taking total number of branches to 435 end June
2021. In addition, the bank also has 1,422 business correspondent branches, of
which 271 are banking outlets.
RBL
Finserve, a 100% subsidiary of the Bank, accounts for 759 business
correspondent branches.
Total
customer base improved to 9.83 million with the addition of 0.20 million
customers in Q1FY2022.
Commenting
on the performance Mr. Vishwavir Ahuja, MD & CEO, RBL Bank said “ While our
revenues and operating profits have held up well and continue to grow year on
year, the effect of the second wave of the COVID pandemic on our asset quality
was rather severe and different from the first wave given the nature of our
businesses, despite the planned counter – cyclicality in our business mix. Economic
activity and growth revival is now visible, hence we have decided to take a
firm view and clear the decks for the future, by taking accelerated/more than adequate
provisions, preparing the Bank to return to normalized levels of business,
provisioning, growth and profitability. Additionally, we have set a clear road
map for our Transformation 2.0 journey encompassing a larger digital agenda, expansion
of our branch footprint, and building out our secured retail assets business
and are confident that given our business traction and competitive strengths in
certain businesses, this will reflect positively in our financial performance
going forward”.
Financial Performance FY2021:
For the year ended March 2021 (FY2021), the bank has posted nearly
flat net profit at Rs 507.78 crore. The net interest income improved 4% to Rs
3787.56 crore, while non-interest income advanced 8% to Rs 2057.84 crore in
FY2021. The expense ratio improved 388 bps to 47.1% in FY2021 compared to 51.0%
in FY2020. The operating expenses declined 3% to Rs 2754.58 crore, while
provision and contingencies jumped 22% to Rs 2401.74 crore. The profit before
tax declined 8% to Rs 689.08 crore in FY2021. An effective tax rate has
declined to 26.3% in FY2021 from 32.8% in FY2020. The net profit came in flat
at Rs 507.78 crore in FY2021.
|
RBL Bank: Results
|
|
Particulars
|
2106 (3)
|
2006 (3)
|
Var %
|
2103 (12)
|
2003 (12)
|
Var %
|
|
Interest Earned
|
2025.83
|
2234.99
|
-9
|
8214.54
|
8514.38
|
-4
|
|
Interest Expended
|
1056.33
|
1193.69
|
-12
|
4426.98
|
4884.74
|
-9
|
|
Net Interest Income
|
969.50
|
1041.30
|
-7
|
3787.56
|
3629.64
|
4
|
|
Other Income
|
694.67
|
333.33
|
108
|
2057.84
|
1910.25
|
8
|
|
Net Total Income
|
1664.17
|
1374.63
|
21
|
5845.40
|
5539.89
|
6
|
|
Operating Expenses
|
856.72
|
684.91
|
25
|
2754.58
|
2825.57
|
-3
|
|
Operating Profits
|
807.45
|
689.72
|
17
|
3090.82
|
2714.32
|
14
|
|
Provisions &
Contingencies
|
1425.67
|
500.16
|
185
|
2401.74
|
1961.54
|
22
|
|
Profit Before Tax
|
-618.22
|
189.56
|
-426
|
689.08
|
752.78
|
-8
|
|
Provision for Tax
|
158.75
|
48.34
|
228
|
181.30
|
247.11
|
-27
|
|
PAT
|
-776.97
|
141.22
|
-650
|
507.78
|
505.67
|
0
|
|
EPS*(Rs)
|
-51.9
|
9.4
|
|
8.5
|
8.5
|
|
|
* Annualized on current
equity of Rs 598.48 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline
Corporate Database
|
|