The lender’s web curiosity earnings within the quarter slumped 11 per cent on-year to Rs 906 crore, which was additionally beneath Road’s estimates.
Nevertheless, the lender reported an enchancment in asset quality for the quarter. The financial institution’s gross non-performing property ratio was at 4.34 per cent as in opposition to 4.57 per cent on a proforma foundation 1 / 4 in the past. Equally, web NPA ratio stood at 2.12 per cent as in opposition to 2.52 per cent 1 / 4 in the past.
Operating performance within the quarter was agency as pre-provision working revenue rose 17 per cent on-year to Rs 877 crore. Nevertheless, web curiosity margin contracted 70 foundation factors on-year to 4.2 per cent on account of reversal of curiosity earnings on slippages.
The lender mentioned that slippages from the BB and beneath rated loan book had been at 10 per cent within the earlier monetary 12 months but it surely expects to revert to regular development of 5-7 per cent in 2021-22.
The asset high quality of enterprise loans deteriorated within the quarter to 1.85 per cent from 1.75 per cent 1 / 4 in the past on a professional forma foundation. On the identical time, the standard of retail books improved to 2.49 per cent from 2.82 per cent.
The lender registered a 26 per cent development in deposits to Rs 73,121 crore however mortgage guide grew merely 1 per cent to Rs 58,623 crore. The muted mortgage development efficiency was largely as a result of 12 per cent decline in wholesale guide, whereas the retail mortgage guide surged 13 per cent.
Shares of RBL Financial institution ended 0.9 per cent greater at Rs 182.9 on the National Stock Exchange.