RBL Bank Limited has announced robust growth in its financial performance for the quarter and fiscal year ending March 31, 2024. The audited financial results were approved by the Board of Directors at a meeting held on April 27, 2024. This marked a significant year of achievements, with substantial increases in operating profit and net profit, alongside improved asset quality.

Comprehensive Growth in Profits and Advances

For the fourth quarter of FY24, RBL Bank recorded a 49% year-on-year increase in operating profit, reaching ₹887 crore, and a 30% rise in net profit, amounting to ₹353 crore. The bank’s Return on Assets (ROA) for the quarter stood at 1.08%, maintaining a strong performance above 1% for five consecutive quarters. Retail advances saw a remarkable growth rate of 30% year-on-year, reaching ₹49,147 crore, which demonstrates the bank’s increasing focus on retail lending.

The total net advances for the bank grew by 20% year-on-year to ₹83,987 crore. This growth was supported by the addition of 600,000 new customers during the quarter. RBL Bank’s deposits also showed a healthy increase, growing by 22% year-on-year to ₹103,494 crore, with granular deposits under ₹2 crore growing even faster at 24% year-on-year.

Enhanced Asset Quality and Capital Adequacy

The bank’s asset quality has seen significant improvement, with Gross Non-Performing Assets (GNPA) reducing by 72 basis points year-on-year to 2.65%, and Net Non-Performing Assets (NNPA) improving by 36 basis points year-on-year to 0.74%. The Provision Coverage Ratio, including technical write-offs, was strong at 89.8%.

RBL Bank remains well-capitalized to support medium-term growth, with a Total Capital Adequacy Ratio (CRAR) of 16.18% and a Common Equity Tier 1 (CET 1) ratio of 14.38%. The bank’s Average Liquidity Coverage Ratio (LCR) was also robust at 140%.

Strategic Focus and Future Outlook

Reflecting on the bank’s performance, R Subramaniakumar, the Managing Director and CEO of RBL Bank, stated, “We’re pleased to report another period of robust financial performance. Our advances and deposits have shown substantial growth, with a notable improvement in operating leverage. We’re witnessing the fruition of our strategic initiatives, as momentum builds and our efforts in various areas yield promising results.”

The bank’s strategic focus on retail lending and customer acquisition, along with its emphasis on improving asset quality and maintaining strong capital adequacy, position it well for sustainable growth in the coming years.

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