Shares of RBL Bank
are set to rise today as the lender's reported its Q2 FY18 net profit rose by 67% yoy to Rs 150 crore vs Rs 89 crore in Q2FY17.
The NII for the quarter rose by 38% yoy to Rs 420 crore in Q2 FY18 vs Rs 303 crore in previous year corresponding quarter. This was largely driven by 21% yoy increase in interest income to Rs 1,091 crore.
Asset quality of the bank was stable in Q2 FY18. GNPA’s as percentage to total advances rose by 34 bps to 1.44% vs 1.1% in Q2 FY17. While net NPA also rose by 23 bps to 0.78% in Q2 FY18 vs 0.55% in previous year corresponding quarter.
The provisions for the quarter rose by 51% to Rs 74.8 crore in Q2 FY18 vs Rs 49.5 crore in Q2 FY17.However, net profit for the quarter rose by 67% yoy to Rs 150 crore vs Rs 89 crore in Q2 FY17.
Advances for the quarter also saw 35% qoq jump in the quarter to Rs.33576 crore vs Rs.24875 crore in Q2FY17. Further capital adequacy for the quarter also looks good at 15.95% vs 14.5% in Q2 FY17.
RBL Bank, formerly The Ratnakar Bank Limited, is a Kolhapur-based small-sized private sector bank. In FY17, wholesale loan book consisted of 69.1% Corporate-&-Institutional-Banking (CIB) and 30.8% Commercial-Banking(CB). Remaining non-wholesale loan book comprises 46.2% Branch & Business Banking (BBB), 35.5% Development Banking & Financial-Inclusion (DB&FI) and 18.8% from Agribusiness Banking (AB). Its current asset quality also looks stable at GNPA and NNPA of 1.6% and 0.64%, respectively. Its loan book stands at Rs.29449 cr in FY17.