RBL Bank net profit doubles in Q4

RBL Bank's consolidated post tax net profit more than doubled to Rs 164.77 crore in the March quarter, mainly due to a low base in the yearago period.

The city-based private sector lender reported a net profit of Rs 197.83 crore on a standalone basis in the January-March period as against Rs 75.34 crore in the year-ago period. In FY22, it reported a loss of Rs 74.74 crore whereas it had a net profit of Rs 507.78 crore in 2020-21. For the reporting quarter, its core Net Interest Income (NII) grew 25 per cent to Rs 1,131 crore, despite a tepid 2 per cent advances growth while the Net Interest Margin (NIM) widened sharply to 5.04 per cent.

Its head of strategy Jaideep Iyer on Thursday explained that the NII growth came on the back of a recognition of an interest income on restructured assets which was not being done earlier. The NIM trajectory will also come down to 4.5 per cent level, he said.

The other income declined 7 per cent to Rs 511 crore, which was attributed by Iyer to a reversal of up to Rs 50 crore in fee income.

He said the bank had charged fees on credit cards on aspects like late payments during the moratorium period which has been reversed, and the other income line will normalise going forward.

The bank's interim chief executive and managing director Rajiv Ahuja told reporters that it is targeting for an overall balance sheet growth in the high-teens to the early 20s which will include a retail assets growth of 25 per cent on the back of performance in segments like credit cards, micro loans, housing and used car lending.