The Board of Directors of RBL Bank Limited at its meeting held today approved the standalone unaudited financial results for the quarter and nine months ended December 31, 2017, which have been subjected to “Limited Review” by the Statutory Auditor of the Bank.
This is after taking a pre-tax charge of Rs.5.89 crore on additional investment done in Utkarsh Micro Finance Limited by the Bank for maintaining its stake at 9.99%. Excluding this charge, the net profit for Q3 FY18 would have been Rs.169.18 crore, which is an increase of 31% over Q3 FY17. Includes one corporate account representing 14 bps of GNPA; expected to be resolved in Q4 FY18
Asset growth and quality
The Bank’s growth in advances portfolio continued to be robust at 38% on a year-on-year basis. The net advances as at December 31, 2017, were Rs. 36,889.58 crore as against Rs. 26,773.12 on December 31, 2016, with all-round growth, observed in all business segments. The growth in the Corporate & Institutional segment and Commercial Banking (together termed as “Wholesale portfolio”) was pegged at 35%, while that of other segments (Retail Assets, Development Banking & Financial Inclusion and Agriculture – together termed as (“Non-wholesale portfolio”) was 43%. The non-wholesale portfolio constituted about 40% of the loan portfolio of the Bank as at December 31, 2017.
The gross NPA ratio has increased to 1.56% as at December 31, 2017, from 1.06% as at December 31, 2016. The gross NPA ratio as at September 30, 2017, was 1.44%. Gross NPA as at December 31, 2017, includes one corporate account representing 14 bps of GNPA which is expected to be resolved in Q4 FY18. The restructured standard assets portfolio has decreased to 0.18% as at December 31, 2017, from 0.29% as at December 31, 2016. The restructured standard assets portfolio as at September 30, 2017, was 0.41%. The net NPA ratio has increased to 0.97% as at December 31, 2017, from 0.52% as at December 31, 2016. The net NPA ratio as at September 30, 2017, was 0.78%. The Bank’s provisioning coverage ratio (including technical write-offs), was 52.54% as at December 31, 2017, as compared to 60.96% as at December 31, 2016. The provisioning coverage ratio was 58.27% as at September 30, 2017.
Deposit growth
The Bank’s deposits growth was also robust at 29% on year on year basis. Deposits grew to Rs. 38,622.54 crore as at December 31, 2017, as against Rs. 30,005.14 crore as at December 31, 2016. The CASA deposits also showed strong growth of 34% during the same period. Savings account deposits increased by 45% during the same period. CASA ratio increased to 24.03% as at December 31, 2017, compared to 23.15% as at December 31, 2016. CASA ratio was 21.98% as at March 31, 2017.
Capital adequacy
The Bank’s capital adequacy ratio as at December 31, 2017, was 15.03% and Tier-1 capital adequacy ratio was 13.23%, significantly higher than the regulatory requirements. For the purpose of computation of CRAR ratio, the Bank has not included the profits earned during the nine months ended December 31, 2017, in the capital funds.
During nine months ended December 31, 2017, the Bank has increased its stake in Swadhaar Finserve Private Limited (SFPL) from 30.00% to 60.48%, following which the company has become a “Subsidiary” of the Bank.
Commenting on the performance, Mr. Vishwavir Ahuja, MD & CEO, RBL Bank said “We continue to see strong growth momentum across all our diversified business segments while maintaining strong asset quality. We are tracking well to our Vision 2020 goals. We continue to expand our scale and footprint while at the same time focusing on meeting customer needs with quality products and services.”
