Capitaline

Results 30-Oct-21

Analysis

RBL Bank

Shows improves performance, asset quality remains concern

RBL Bank has recorded 78.63% decline in the net profit to Rs 30.80 crore in the quarter ended September 2021 Q2FY2022. Interest income has declined 6% to Rs 1974.80 crore. Interest expense fell 9% to Rs 1,059.32 crore. Hence net interest income fell 2% to Rs 915.48 crore.

With other income showing a rise of 42% to Rs 592.85 crore, net total income increased 12% to Rs 1508.33 crore. The core fee income jumped 46% to Rs 506 crore.

Operating expenses rose 22% to Rs 817.35 crore. As a result, profit before provisions rose 1% to Rs 690.98 crore. Provisions & Contingencies increased 34% to Rs 651.49 crore. Profit before tax declined 80% to Rs 39.49 crore compared to Rs 194.19 crore. Provision for tax was an expense of Rs 8.69 crore, compared to Rs 50.03 crore.

Net interest margin (NIM), which stood at 4.34% as on 30 September 2020 and 4.36% as on 30 June 2021, stood at 4.06% as on 30 September 2021. CASA ratio, which stood at 30.10% as on 30 September 2020 and 33.7% as on 30 June 2021, stood at 35.4% as on 30 September 2021.

The cost to income ratio rose to 54.19% as on 30 September 2021 from 49.51% as on 30 September 2020.

Asset quality weakens

The fresh slippages of loans remained elevated at Rs 1217 crore in Q2FY2022 against Rs 1342 crore in Q1FY2022.

Recoveries stood at Rs 290 crore, upgrades at Rs 180 crore and write offs at Rs 527 crore.

Gross non-performing assets increased to Rs 3,130.93 crore as on 30 September 2021 from Rs 1,911.72 crore as on 30 September 2020 and Rs 2,911.28 crore as on 30 June 2021.

Gross NPA % rose to 5.40% as on 30 September 2021 from 3.34% as on 30 September 2020 and Rs 4.99% as on 30 June 2021.

Net non-performing assets moved from Rs 775.77 crore as on 30 September 2020 and Rs 1,137.17 crore as on 30 June 2021 to Rs 1,200.43 crore as on 30 September 2021.

Net NPA % which stood at 1.38% as on 30 September 2020 and 2.01% as on 30 June 2021 stood at 2.14% as on 30 September 2021.

The net restructured loans increase to Rs 3.35% end September 2021 from 1.80% end June 2021.

The securities receipts book stood at 0.33% end September 2021.

The bank has improved provision coverage ratio to 76.60% as on 30 September 2021 from 74.8% as on 30 September 2020.

Capital adequacy ratio moved from 16.09% as on 30 September 2020 and 17.15% as on 30 June 2021 to 16.33% as on 30 September 2021.

Asset Quality Indicators: RBL Bank
	Sep-21	Jun-21	Mar-21	Dec-20	Sep-20	Variation
	Sep-21	Jun-21	Mar-21	Dec-20	Sep-20	QoQ	YTD	YoY
Gross NPA (Rs Crore)	3130.93	2911.28	2601.53	1050.21	1911.72	8	20	64
Net NPA (Rs Crore)	1200.43	1137.17	1241.35	402.46	775.77	6	-3	55
% of GNPA	5.40	4.99	4.34	1.84	3.34	41	106	206
% of NNPA	2.14	2.01	2.12	0.71	1.38	13	2	76
Provision coverage ratio %	76.60	76.30	72.20	86.40	74.80	30	440	180
% CRAR - Basel III	16.33	17.15	17.50	17.33	16.09	-82	-117	24
% CRAR - Basel III - Tier I	15.50	16.10	16.60	17.10	15.10	-60	-110	40
Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business highlights

Deposits were up 17.18% yoy to Rs 75588 crore. Retail Deposits (as per LCR definition) grew 42% YOY and 6% QOQ Rs 31,421 crore

CASA grew 33% YOY and 7% QOQ Rs 26,734 crore. CASA ratio at 35.4% increased from 31.1% in Q2FY21 and 33.7% in Q1FY22.

Advances were flat at Rs 56009 crore. Retail: Wholesale mix at 55:45. The wholesale advances grew 5% end September 2021. Retail advances declined 4% due to 26% dip in the micro banking loans, 14% fall in business loans and 22% dip in other retail loans. Credit cards loans increased 11% and retail agriculture loans by 10%.

Investment book of the bank has declined to Rs 21773 crore end September 2021 from Rs 25314 crore end June 2021. The yield on the investment book was 6.6% in Q2FY2022 from 5.4% in the previous quarter and 5.3% in the corresponding quarter last year.

The customer base of the bank has increased to 9.97 million with the addition of 0.14 million customers in the quarter ended September 2021.

The bank added 9 branches during Q2FY22 taking the total number of branches to 445 branches end September 2021. In addition, the Bank also has 1,435 business correspondent branches, of which 271 are banking outlets.

RBL Finserve (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 769 business correspondent branches.

Book value stood at Rs 204.4 per share, while adjusted book value net of NNPA and 10% of restructured loans was at Rs 181.3 per share end September 2021.

Financial performance H1FY2022

RBL Bank Interest income has declined 8% to Rs 4000.63 crore. Interest expense fell 11% to Rs 2115.65 crore. Hence net interest income fell 4% to Rs 1884.98 crore.

With other income showing a rise of 64% to Rs 1246.21 crore, net total income increased 15% to Rs 3131.19 crore. Operating expenses rose 23.69% to Rs 1674.07 crore. As a result, profit before provisions rose 6% to Rs 1457.12 crore. Provisions & Contingencies increased 105% to Rs 2035.85 crore, Profit before tax reported loss of Rs 578.73 crore compared to profit of Rs 383.75 crore.

Provision for tax was credit of Rs 150.06 crore, compared to debit of Rs 98.37 crore. Net Profit reported loss of Rs 428.67 crore compared to profit of Rs 285.38 crore.

The cost to income ratio rose to 53.46% as on 30 September 2021 from 49.53% as on 30 September 2020.

RBL Bank: Results
Particulars	2109 (3)	2009 (3)	Var %	2109 (6)	2009 (6)	Var %	2103 (12)	2003 (12)	Var %
Interest Earned	1974.80	2096.68	-6	4000.63	4356.08	-8	8329.02	8514.38	-2
Interest Expended	1059.32	1164.61	-9	2115.65	2382.71	-11	4541.46	4884.74	-7
Net Interest Income	915.48	932.07	-2	1884.98	1973.37	-4	3787.56	3629.64	4
Other Income	592.85	418.20	42	1246.21	759.32	64	1884.04	1910.25	-1
Net Total Income	1508.33	1350.27	12	3131.19	2732.69	15	5671.60	5539.89	2
Operating Expenses	817.35	668.52	22	1674.07	1353.43	24	2754.58	2825.57	-3
Operating Profits	690.98	681.75	1	1457.12	1379.26	6	2917.02	2714.32	7
Provisions & Contingencies	651.49	487.56	34	2035.85	995.51	105	2227.94	1961.54	14
Profit Before Tax	39.49	194.19	-80	-578.73	383.75	PL	689.08	752.78	-8
Provision for Tax	8.69	50.03	-83	-150.06	98.37	LP	181.30	247.11	-27
PAT	30.80	144.16	-79	-428.67	285.38	PL	507.78	505.67	0
EPS*(Rs)	2.1	9.6		-14.3	9.5		8.5	8.4
* Annualized on current equity of Rs 599.33 crore. Face Value: Rs 10, Figures in Rs crore PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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