RBL Bank Ltd : Latest Quarterly Results Analysis

RBL Bank announced Q3FY24 results:

Financial Highlights:

• Operating Profit increased to Rs 765 crore, a growth of 35% YoY and 5% QoQ.
• Net Advances escalated to Rs 79,949 crore, marking a 20% YoY and 5% QoQ upsurge.
• Retail Advances saw a significant 33% YoY and 5% QoQ rise to Rs 46,371 crore.
• Total Deposits grew by 13% YoY to Rs 92,746 crore with a 3% QoQ growth.
• CASA Deposits are at Rs 31,338 crore, reflecting a 5% YoY increase.
• CASA Ratio stands at 33.8%, a decrease from 36.6% as of December 31, 2022.
• Net Interest Income (NII) reached Rs 1,546 crore, a 21% YoY and a 5% QoQ growth.
• Other Income showed an increase to Rs 778 crore, 26% YoY and 10% QoQ up.
• Net Total Income grew by 23% YoY and 7% QoQ to Rs 2,323 crore.
• Net Profit (excluding contingent provision on AIF investments) rose to Rs 319 crore, a 53% YoY and 9% QoQ increase; Reported Net Profits were at Rs 233 crore, up by 12% YoY.
• Net Interest Margin (NIM) was stable at 5.52%, compared to 5.27% in Q3FY23.
• Cost to Income Ratio improved to 67.1% from 70.1% in Q3FY23.
• ROA (excluding contingent provision) was at 1.03%, up from 0.78% in the same quarter last year; Reported ROA stood at 0.75% for Q3FY24.
• ROE (excluding contingent provision) was at 8.89%, for the reported period.
• Gross NPA ratio improved to 3.12%, a decrease from 3.61% as of December end of the previous year.
• Net NPA ratio improved to 0.80%, down from 1.18% as of December end of the previous year.
• Provision Coverage Ratio including technical write-offs improved to 89.3% from 84.7% as of December end of the previous year.
• Capital Adequacy Ratio stood at 16.4% with a CET1 of 14.6%.

Growth and Expansion:

• Credit Card Issuance: 5.75 lakh new credit cards were issued this quarter.
• Customer Acquisition: 6.60 lakh new customers were added during the quarter.
• Small Deposits (< Rs 2 crore) increased by 23% YoY to Rs 41,275 crore, contributing to 44.5% of total deposits.
• Branch and ATM Network: The Bank operates through 538 bank branches, 1,217 business correspondent branches, and 388 ATMs across the country.

Commenting on the performance, R Subramaniakumar, MD & CEO, RBL Bank said, “We are happy to announce another quarter of strong financial performance. Our advances & deposits have experienced robust growth with a granularity of both sides of the Balance Sheet catching pace. As per our plan, the Profitability growth has outpaced the Balance Sheet growth. Notably, our execution of strategic goals, have contributed to our performance. We remain well capitalised to take advantage of growth opportunities”.

Result PDF

RBL Bank announced Q2FY24 results:

1. Financial Performance:
- Net profit increased by 46% YoY and 2% QoQ to Rs 294 crore.
- Operating profit grew by 43% YoY and 13% QoQ to Rs 731 crore.
- Total revenue increased by 24% YoY and 3% QoQ to Rs 2,179 crore.
- Net interest income increased by 26% YoY and 4% QoQ to Rs 1,475 crore.
- Other income increased by 21% YoY and 3% QoQ to Rs 704 crore.
- Cost to income ratio improved to 66.5% compared to 69.3% in Q1 FY24 and 70.8% in Q2 FY23.

2. CASA and Deposits Growth:
- CASA grew by 12% YoY and 1% QoQ to Rs 32,089 crore.
- Total deposits grew by 13% YoY and 5% QoQ to Rs 89,780 crore.
- Retail deposits (as per LCR definition) grew by 19% YoY and 4% QoQ to Rs 39,706 crore.

3. Advances Growth:
- Net advances book grew by 21% YoY and 4% QoQ to Rs 76,324 crore.
- Retail advances book grew by 35% YoY and 8% QoQ to Rs 44,092 crore.
- Retail disbursement for Q2 FY24 was Rs 4,300 crore.
- Housing loans grew by 43% YoY, while rural vehicle finance grew by 167% YoY.

4. Asset Quality:
- Gross NPA ratio improved to 3.12% compared to 3.22% as of June 30, 2023, and 3.80% as of September 30, 2022.
- Net NPA ratio improved to 0.78% compared to 1.00% as of June 30, 2023, and 1.26% as of September 30, 2022.
- Provision coverage ratio, including technical write-offs, was 88.4% compared to 85.9% as of June 30, 2023, and 84.3% as of September 30, 2022.

5. Capital and Liquidity:
- Overall capital adequacy was 17.07% compared to 16.68% as of June 30, 2023.
- Common Equity Tier 1 ratio was 15.15% compared to 15.05% as of June 30, 2023.
- Average Liquidity Coverage Ratio was at 142%.
 

Result PDF

RBL Bank announced Q1FY24 results:

• Net Profit grew 43% YoY & 6% QoQ to Rs 288 crore
• ROA of 1.01% vs 1.00% for Q4 FY23
• Operating profit grew 22% YoY & 9% QoQ to Rs 647 crore
• Total Revenue grew 18% YoY and 2% QoQ to Rs 1,932 crore
• Net Interest Income grew 21% YoY and 3% QoQ to Rs 1,246 crore; NIM was 4.84% vs 4.36% for Q1FY23
• Other Income grew 12% YoY and 2% QoQ to Rs 685 crore
• Cost to Income was 66.5% vs 68.5% for Q4FY23 and 67.8% for Q1FY23
• CASA grew 12% YoY and 1% QoQ to Rs 31,927 crore. CASA ratio at 37.3% vs. 36.0% as of 30th June 2022
• Total deposits grew 8% YoY and 1% QoQ to Rs 85,636 crore
• Retail Deposits (as per LCR definition) grew 19% YoY and 3% QoQ to Rs 37,400 crore
• Net Advances book grew 21% YoY and 4% sequentially to Rs 73,087 crore
• Retail Advances book grew 34% YoY and 8% sequentially to Rs 40,866 crore
• Retail disbursement for Q1FY24 at Rs 4,100 crore
• Total customers at 13.65 million vs 11.30 million in Q1FY23, an increase of 2.35 million
• Overall capital adequacy was 16.68% and the Common Equity Tier 1 ratio was 15.05%
• Average Liquidity Coverage Ratio at 129%
• Gross NPA ratio improved to 3.22% vs. 3.37% as of 31st March 2023 and 4.08% as of 30th June 2022, improved by 87 bps in a year
• Net NPA ratio improved to 1.00% vs. 1.10% as of 31st March 2023 and 1.16% as of 30 th June 2022, improved by 16 bps in a year
• Provision Coverage Ratio including technical write offs was 85.9% vs 85.0% as of 31st March 2023
• Credit cost 39 bps against 29 bps in Q4FY23 and 43 bps in Q1FY23
• As of 31 st March 2023, the Bank has 520 bank branches and 1,115 business correspondent branches, of which 298 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 795 business correspondent branches

Commenting on the performance, R Subramaniakumar, MD & CEO, RBL Bank said, “We have started FY24 with strong operating performance on all parameters. The advanced growth was healthy with strong disbursals continuing in the retail segment. We have further improved our granular deposits, in line with our laid-out strategy. Our revenue has grown faster than operating expenses driven by the optimisation of a 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 the last Financial Year on newly 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 a good runway for growth.”

Result PDF

 RBL Bank announced Q3FY23 results:

• Q3FY23:
  • Steady operating performance:
    • Net Profit grew 34% YoY to Rs 209 crore
    • Operating profit was Rs 567 crore
    • Total Revenue grew 11% YoY to Rs 1,767 crore
    • Net Interest Income grew 14% YoY to Rs 1,148 crore; NIM was 4.74%
    • Other Income grew 6% YoY to Rs 618 crore
    • Cost to Income was 67.9%
  • CASA and Deposits Growth:
    • Total deposits grew 11% YoY to Rs 81,746 crore
    • CASA grew 18% YoY to Rs 29,948 crore. CASA ratio at 36.6% vs. 34.4% as at Q3FY22
    • Retail Deposits (as per LCR definition) grew 25% YoY to Rs 34,769 crore
  • Advances Growth:
    • Net Advances book grew 15% YoY and 6% sequentially to Rs 66,684 crore
    • Retail Advances book grew 13% YoY and 7% sequentially to Rs 34,977 crore
    • Retail: Wholesale mix at 52:48
  • Well capitalized with sound liquidity:
    • Overall capital adequacy (including 9MFY23 profits) was 17.0% and Common Equity Tier 1 ratio was 15.5%
    • Average Liquidity Coverage Ratio at 144%
  • Asset quality:
    • Gross NPA ratio improved to 3.61% vs. 3.80% as at Q2FY23 and Net NPA ratio was 1.18% vs. 1.26% as at Q2FY23
    • Provision Coverage Ratio including technical write offs was 84.7% vs 84.3% as at Q2FY23.
  • Network
    • As of Q3FY23, the Bank has 516 bank branches and 1,168 business correspondent branches, of which 298 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 821 business correspondent branches

Commenting on the performance, Mr. R Subramaniakumar, MD&CEO, RBL Bank said “We have had another quarter of improving operating performance and we are confident of continuing this trend in coming quarters. Our Business growth, driven by granular advances and deposits growth, continues to improve, in line with our strategy and execution. Our initiatives over the last six months on new product launches, and scale up of granular retail products are also starting to bear fruit. As these products scale up, we expect growth to become more broad based. Our asset quality and capital position continues to be healthy giving us the runway to accelerate profitable growth of the balance sheet."

Result PDF

RBL Bank announced Q2FY23 results:

• Operating performance:
  • Total Revenue grew 9% YoY to Rs. 1,648 crore
  • Net Interest Income grew 16% YoY to Rs. 1,064 crore; NIM was 4.55%
  • Other Income was down 2% YoY to Rs. 583 crore
  • Cost to Income was 68.9%
  • Operating profit was Rs. 512 crore
  • Net Profit was Rs. 202 crore vs. Rs. 201 crore for Q1FY23 and Rs. 31 crore for Q2FY22
• CASA and Deposits Growth:
  • Total deposits grew 5% YoY to Rs. 79,404 crore
  • CASA grew 7% YoY to Rs. 28,718 crore. CASA ratio at 36.2% vs. 35.4% as at 30th Sep 2021
  •  Retail Deposits (as per LCR definition) grew 4% YoY to Rs. 32,832 crore
• Advances Growth:
  • Net Advances book grew 12% YoY and 4% sequentially to Rs. 62,942 crore
  • Retail: Wholesale mix at 52:48

Commenting on the performance, Mr. R Subramaniakumar, MD&CEO, 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”.

Result PDF

RBL Bank Announced Q1FY23 Result :

• Steady operating performance:
  • Total Revenue grew to Rs 1,641 crore
  • Net Interest Income grew 6% YoY to Rs 1,028 crore; NIM was 4.36%
  • Other Income was down 6% YoY to Rs 614 crore
  • Cost to Income was 67.8%
  • Operating profit was Rs 529 crore
  • Net Profit was Rs 201 crore vs. Rs 198 crore for Q4FY22
• CASA Continues Strong Growth:
  • Total deposits grew 6% YoY to Rs 79,216 crore
  • CASA grew 14% YoY to Rs 28,526 crore. CASA ratio at 36.0% vs. 33.7% as at 30th June 2021
  • Retail Deposits (as per LCR definition) grew 6% YoY to Rs 31,415 crore
• Advances Growth:
  • Advances book grew 7% YoY and was flat sequentially at Rs 60,270 crore
  • Retail: Wholesale mix at 51:49
• Well capitalized with sound liquidity:
  • Overall capital adequacy (including Q1 FY23 profits) improved 70bps sequentially to 17.5%; Common Equity Tier 1 ratio at 16.0%
  • Average Liquidity Coverage Ratio at 149%
• Asset quality:
  • Gross NPA ratio and Net NPA ratio improved sequentially to 4.08% and 1.16% vs. 4.40% and 1.34%, respectively as at 31st March 2022
  • Provision Coverage Ratio including technical write offs improved 188bps sequentially to 85.3% vs 83.4% as at 31st March 2022. Provision Coverage Ratio improved 208bps sequentially to 72.5% vs 70.4% as at 31st March 2022.
• Network:
  • As of 30th June 2022, the Bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 789 business correspondent branches

Commenting on the performance, Mr. R Subramaniakumar, MD&CEO, RBL Bank said “We have started the new financial year with a satisfactory performance on all fronts. The Bank completed the issuance of US$100 million Tier 2 Notes in this quarter improving its capital adequacy further. Our focus would be to consolidate, leverage and optimize our existing platform so as 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 retail products”.

Result PDF

RBL Bank declares Q4FY22 result:

• Healthy operating performance:
  • Total Revenue grew 13% YoY to Rs 1,643 crore for Q4FY22 and grew 12% YoY to Rs 6,367 crore for FY22
  • Net Interest Income grew 25% YoY to Rs 1,131 crore for Q4FY22 and grew 6% YoY to Rs 4,027 crore for FY22; NIM for FY22 was 4.45%
  • Other Income was down 7% YoY to Rs 511 crore for Q4FY22; grew 24% YoY to Rs 2,341 crore for FY22
  • Cost to Income was 60.0% for Q4FY22 and 56.9% for FY22
  • Operating profit was Rs 657 crore for Q4FY22 and Rs 2,745 crore for FY22
  • Net Profit was Rs 198 crore vs. Rs 156 crore in Q3FY22; Net Loss for FY22 was Rs 75 crore
• CASA Continues Strong Growth:
  • Total deposits grew 8% YoY to Rs 79,007 crore
  • CASA grew 20% YoY to Rs 27,879 crore. CASA ratio at 35.3% vs. 31.8% as at 31st March 2021
  • Retail Deposits (as per LCR definition) grew 13% YoY to Rs 30,717 crore
• Advances Growth:
  • Advances book grew 2% YoY and 3% sequentially to Rs 60,022 crore
  • Retail: Wholesale mix at 52:48
• Well capitalized with sound liquidity:
  • Overall capital adequacy improved 25bps sequentially to 16.8% and Common Equity Tier 1 ratio improved 44bps sequentially to 16.2%
  • Average Liquidity Coverage Ratio for Q4FY22 at 138%
• Asset quality:
  • Gross NPA ratio and Net NPA ratio improved sequentially to 4.40% and 1.34% vs. 4.84% and 1.85%, respectively as at 31st Dec 2021
  • Provision Coverage Ratio improved 750bps sequentially to 70.4% vs 62.9% as at 31st Dec 2021
• Network:
  • As of 31st March 2022, the Bank has 502 bank branches and 1,418 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 870 business correspondent branches

Commenting on the performance, Mr. Rajeev Ahuja, MD&CEO (interim), RBL Bank said “This quarter has been one of stable business performance and we continued to improve in both profitability and asset quality. We are entering the new fiscal with a relatively clean slate on asset quality, remain well capitalised and our business operating rhythm holds us in good stead to grow meaningfully in our chosen segments with improved profitability metrics.”

Result PDF

Banking and Finance company RBL Bank announced Q3FY22 results:

• Operating performance:
  • Total Revenue grew 10% YOY to Rs 1,630 crore
  • Net Interest Income grew 11% YOY to Rs 1,010 crore; NIM at 4.3%
  • Other Income was Rs 620 crore, up 8% YOY
  • Cost to Income was 61.3%
  • Operating profit was Rs 631 crore
  • Net Profit was Rs 156 crore vs. Rs 31 crore in Q2FY22
• CASA:
  • Total deposits grew 10% YOY to Rs 73,639 crore
  • CASA grew 21% YOY to Rs 25,318 crore. CASA ratio at 34.4% vs. 31.1% in Q3FY21
  • Retail Deposits (as per LCR definition) grew 14% YOY to Rs 27,889 crore
• Advances Growth:
  • Advances book grew 3% YoY and 4% sequentially to Rs 58,141 crore
  • Retail: Wholesale mix at 53:47
• Asset quality:
  • Gross NPA ratio and Net NPA ratio at 4.84% and 1.85% vs. 5.40% and 2.14%, respectively in Q2FY22
  • Provision Coverage Ratio at 62.9% vs 61.7% in Q2FY22, up 1.28% QoQ

Commenting on the performance, Mr. Rajeev Ahuja, MD&CEO (Interim), RBL Bank said, “This has been a turnaround quarter as we have seen a sharp improvement in both profitability and asset quality. Our business and advances momentum are now firmly on a positive trajectory, and we expect this to continue with retail also returning to growth. As the stress from the pandemic abates and with the overall improvement in the economic environment, we are confident of continuing and improving this performance over the next fiscal. Today, we also reached the landmark of 500 bank branches, and we plan to continue to invest in expanding our physical and digital footprint.”

Result PDF

Results Summary for Q2FY22:

• Total Revenue grew 12% YOY to Rs. 1,508 crore
• Net Interest Income de-grew 2% YOY to Rs. 915 crore; NIM at 4.1%
• Other Income was Rs. 593 crore, up 42% YOY;
• Cost to Income was 54.1% against 49.5% for Q2FY1
• Operating profit grew 2% YOY to Rs. 691 crore
• Net Profit was Rs. 31 crore

Commenting on the performance Mr. Vishwavir Ahuja, MD & CEO, RBL Bank said “Our granular retail deposit traction continues to be robust. CASA deposits ratio reached an all-time high of 35.4% this quarter. At the same time, we have been improving our competitiveness by reducing our cost of funds. The economic environment is bouncing back strongly as the pace of vaccination quickens in the country. Our Bank is also confident of reverting to normalised levels of business, growth and profitability from the current (Q3) quarter itself and are on track to exit this financial year with strong profitability ratios setting us up well for FY23”.

Result PDF