Private sector lender RBL Bank reported a 54% decline in net profit to ₹114 crore for the quarter ended March 31, due to higher provisions.
The net interest income for the bank went up 38% year-on-year to ₹1,021 crore, while non-interest income grew 22% to ₹501 crore. Core fee income was up 21% to ₹470 crore. Net interest margin for Q4FY20 was 4.93% as compared to 4.6% in the previous quarter and 4.2% in the fourth quarter of FY19. The bank has made a provision of ₹614 crore during the quarter as compared to ₹198 crore during the same period of the previous year. “There was ₹115 crore additional provision with regard to COVID-19,” Vishwavir Ahuja, MD & CEO, RBL Bank, said. He said the bank had provided full 10% on the standstill accounts in the fourth quarter as against 5% each in two quarters which was allowed by the regulator. One third of the bank’s book was under the loan moratorium.
Mr. Ahuja said the loan moratorium was extended to all the 3 million customers of the micro-banking segment, which is 13% of the bank’s total advances.
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In credit cards, which form 18% of the bank’s total advances, only 24% of the amount was under moratorium.
“On retail loans, which are about 22% of the advances, moratorium was offered across the board, but 46% of the customers have availed the moratorium. On wholesale side, which is 44% of the advances, only 22% by number and 23% by exposure have taken the moratorium,” he said.
The gross NPA ratio was 3.62% as at March 31, as against 3.33% at the end of December. The net NPA ratio was 2.05% as at March 31 as against 2.07% as at Dec. 31 2019. The provisioning coverage ratio stood at 64.04% as on March 31.
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Advances grew 7% on year to ₹58,019 crore as on March 31, 2020 driven by retail asset growth of 41%.
“Deposit traction is gaining momentum again and our deposits are now higher than March 31 levels and in excess of ₹ 60,000 crore as of April end,” Mr.Ahuja said.