RBL Bank crimps on asset quality

RBL Bank is amongst the top losers on the BSE currently. The stock price slumped 5% to Rs.510; it has recovered since then and is now at Rs.515 levels.

The Bank’s asset quality showed deterioration in Q3FY18 and that’s the reason for this deep red on the counter.

Its Gross NPA rose sharply from 1.06% to 1.56% which the bank says was mainly on account of one single account that contributed 14 bps to the Gross NPA, which is expected to become normal in Q4. Its Net NPA too showed a sharp rise from 0.52% to 0.97%.

Its restructured asset portfolio has come down from 0.29% to 0.18%. The Bank’s provision coverage ratio was at 52.54%.

The Bank’s NII was up 45% at Rs.467 crore and other income was up 42% at Rs.258 crore. Net profit showed a 28% growth at Rs165 crore.

Its advances for the quarter rose 10% (QoQ) and up 38% (YoY) at Rs.36890 crore.

Capital adequacy ratio for Q3FY18 end stood at 15.03%. Its Tier-1 capital adequacy ratio was 13.23%.