RBL Bank Q2FY24 financial highlights: Significant YoY and QoQ growth

RBL Bank, an Indian private sector bank, has revealed a strong Q2FY24 financial performance with a 46% YoY growth in net profit. Explore the key highlights here.

RBL Bank’s Q2FY24 Key Financial Highlights:

• Net Profit: Rs 294 crore, up by 46% YoY & 2% QoQ.
• Operating Profit: Rs 731 crore, marking 43% YoY & 13% QoQ growth.
• Total Revenue: Rs 2,179 crore, showing a 24% YoY & 3% QoQ increment.
• Net Interest Income: Rs 1,475 crore; NIM stands at 5.54%.

Strong Operating Performance in Q2FY24

Net Profit for RBL Bank in the second quarter of the fiscal year 2024 grew by 46% YoY and 2% QoQ to reach Rs 294 crore. The Operating Profit showed a robust growth of 43% YoY and 13% QoQ, amounting to Rs 731 crore. The bank also witnessed a 24% YoY and 3% QoQ increase in its Total Revenue, which reached Rs 2,179 crore.

Net Interest Income grew 26% YoY and 4% QoQ to reach Rs 1,475 crore with the NIM reported to be 5.54%, showing an improvement compared to 5.02% for Q2 FY23. The bank’s other income rose to Rs 704 crore, marking a 21% YoY and 3% QoQ growth.

RBL Bank reports strong Q2FY24 financial performance. Photo courtesy of Albert_Deccan/Wikimedia Commons.

Financial Developments in Q2FY24

The bank reported a tax provision write-back for earlier years, amounting to Rs 222.92 crore (pre-tax of Rs 297.89 crore). This write-back was used by the bank to create a contingent buffer of 100bps on Credit Card & Microfinance Advances, strengthening the balance sheet with a total provision of Rs 252 crore. In addition, the provisioning policy in credit cards was adjusted to fully provide for NPA cases at 120 days as opposed to the earlier 180 days. This change led to an additional provision of `48 crore in this quarter, making the aggregate additional provision by the bank to Rs 300 crore.

Impressive CASA and Deposit Growth

RBL Bank’s CASA grew by 12% YoY and 1% QoQ, touching Rs 32,089 crore. The CASA ratio was reported at 35.7%. The total deposits of the bank exhibited a growth of 13% YoY and 5% QoQ, amounting to Rs 89,780 crore.

Advance Growth and Asset Quality

Net Advances book grew by 21% YoY and 4% sequentially, reaching Rs 76,324 crore. There was a significant growth in Retail Advances, marking a 35% YoY and 8% sequential growth, with the total reaching Rs 44,092 crore. The bank’s gross NPA ratio improved to 3.12%, and the net NPA ratio improved to 0.78%.

Statement from RBL Bank’s MD&CEO

R Subramaniakumar, MD&CEO of RBL Bank commented, “We are happy to announce yet another quarter of improving operating performance. The advances growth was healthy with strong growth in the retail segment. Our revenue has grown at a healthy pace; operating expenses are stable sequentially, driven by continued cost optimization. We are also pleased with the progress we are making on cross-sell opportunity, within the large card and liability base we have, and we expect this to accelerate further going forward.”