RBL Bank shares tumble 15% to hit 52-week low

Shares of RBL Bank plunged 15% to hit a 52-week low of ₹175 on the BSE on Monday after the Mumbai-headquartered lender reported a 24% decline in its second quarter profit.

Net profit of RBL Bank dropped 24% year-on-year to ₹222.52 crore for the quarter ended September compared with ₹294 crore in Q2 FY24.

The lender’s net interest income grew 9% year-on-year to ₹1,615 crore while net interest margin came in at 5.04%. The bank’s operating profit grew 24% to ₹910 crore.

RBL Bank’s other income grew 32% year-on-year to ₹927 crore while core fee grew 21% to ₹822 crore. Operating expenses grew 13% YoY to ₹1,632 crore.

“We are pleased to report another quarter of steady financial performance, demonstrating progress towards our strategic objectives. While we remain mindful of certain near-term challenges, our core operations continue to show resilience. Our cross-sell initiatives and ‘One Bank’ approach are beginning to deliver tangible results, enhancing customer engagement across multiple product lines,” says R Subramaniakumar, MD and CEO, RBL Bank.

As of September 2024, the Bank has 1,882 total touchpoints of which 550 are bank branches and 1,332 business correspondent branches. Of 1,332 business correspondent branches, 297 are banking outlets. RBL Finserve, a 100% subsidiary of the Bank, accounts for 1,024 business correspondent branches.

In the first half of FY25, the lender’s Net Interest Income (NII) grew 14% YoY to ₹3,315 crore while net interest margin for H1 FY25 was 5.35%. Total Revenue for H1 FY25 grew 18% YoY to ₹5,048 crore.

Total Deposits grew 20% YoY to ₹107,959 crore o CASA grew 13% YoY to ₹36,224 crore. CASA ratio at 33.6%. Granular Deposits i.e. deposits less than ₹3 crore grew 22% YoY & 4% QoQ to ₹52,223 crore; at 48.4% of total deposits.

The lender recorded growth in advances with focus on secured retail assets & commercial banking (mid-corporates and SME). Net Advances book grew 15% YoY to ₹87,882 crore. Retail Advances book grew 24% YoY to ₹54,723 crore and retail versus wholesale advances mix stood at 62:38.

Gross NPA ratio improved to 2.88% versus 3.12% as at September 30, 2023, improved by 25 bps in a year. Net NPA ratio at 0.79% vs 0.78% as at September 30, 2023, up 1 bps in a year.

Total customers stood at 16.06 million as of September 30, 2024 versus 14.31 million as of September 30, 2023, an increase of 1.75 mn in a year.