The lender's net interest income was at Rs970cr in the quarter under review down by 7% yoy but rises 7% qoq.
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."
The bank's Gross NPA ratio was at 4.99% versus 4.34% of Q4FY21 and 3.45% of Q1FY21. While Net NPA ratio at 2.01% versus 2.12% in Q4FY21 and 1.65% of Q1FY21.
The net interest margin stood lower at 4.36% in Q1FY22 against 4.85% of Q1FY21, however, was higher from 4.17% in Q4FY21.
Ahuja added, "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."
On Sensex, RBL Bank closed at Rs186.75 per piece down by 4%.