GNPA improved 72bps YoY to 2.65%; NNPA improved 36bps YoY to 0.74%, PCR including technical write-off of 89.8%
FinTech BizNews Service
Mumbai, April 27, 2024: The Board of Directors of RBL Bank Limited approved the audited financial results for the quarter and year ended 31st March 2024 at its meeting held on Saturday, 27th April 2024.
Key highlights for Q4 FY24
· Strong Operating Profit growth of 49% YoY;
· Net Profit grew 30% YoY; ROA at 1.08%
· Net Advances grew 20% YoY; Retail Advances grew faster at 30% YoY
· Deposits grew 22% YoY; Granular deposits grew faster at 24% YoY
· GNPA improved 72bps YoY to 2.65%; NNPA improved 36bps YoY to 0.74%, PCR including technical writeoff of 89.8%
· Well capitalised for medium term growth, Total CRAR of 16.18% and CET 1 of 14.38%
Q4 FY24 Results at a Glance
Ø Operating profit grew 49% YoY & 16% QoQ to Rs 887 crore
Ø Net Profit grew 30% YoY & 51% QoQ to Rs 353 crore
Ø ROA of above 1% for last 5 quarters (excluding contingency provision created on AIF investments in Q3 FY24)
Ø Q4 ROA at 1.08%; ROE at 9.73%
Ø Net Advances grew 20% YoY & 5% QoQ to Rs 83,987 crore
Ø Retail Advances grew at faster pace; grew by 30% YoY & 6% QoQ to Rs 49,147 crore; Retail: Wholesale mix was 59:41
Ø Retail Disbursements for Q4 FY24 was Rs 6,163 crore; of which Rs 2,009 crore was towards new secured retail products
Ø 6 lakhs new customers added during the quarter
Ø Total Deposits grew 22% YoY & 12% QoQ to Rs 103,494 crore; CASA Ratio at 35.2%
Ø Deposits less than 2 crore grew 24% YoY & 6% QoQ to Rs 43,753 crore; at 42.3% of total deposits
Ø Overall Capital Adequacy was 16.18%; CET 1 was 14.38%
Ø Average LCR was 140%
Ø GNPA down 72bps YoY & 46bps QoQ to 2.65%; NNPA down 36 bps YoY & 6bps QoQ to 0.74%
Ø Provision Coverage Ratio including Technical Writeoff was 89.8%
FY24 Results at a Glance
Ø Operating profit grew 38% YoY to Rs 3,031 crore
Ø As per RBI directions dated 19th December 2023; Bank had created contingent provision of Rs 115 crore on AIF investments in Q3 FY24
Ø Excluding this contingent provision, Net Profit grew 42% YoY to Rs 1,253 crore; Reported Net Profits grew 32% YOY to Rs 1,168 crore
Ø Excluding this contingent provision, ROA was 1.03% vs 0.83% for FY23; Reported ROA was 0.96% for FY24
Ø Retail Disbursements for FY24 was Rs 21,909 crore vs Rs 12,903 crore for FY23; of which Rs 7,478 crore was towards new secured retail products in FY24
Ø 27 lakhs new customers added during FY24
In reflecting on this quarter's achievements, Mr. R Subramaniakumar, MD&CEO, 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.”
Results Summary for Q4FY24
· Strong Profit Growth:
o Operating profit grew 49% YoY & 16% QoQ to Rs 887 crore
o Total Revenue grew 22% YoY and 7% QoQ to Rs 2,475 crore
o Net Interest Income grew 18% YoY and 3% QoQ to Rs 1,600 crore; NIM was 5.45%
o Other Income grew 30% YoY and 13% QoQ to Rs 875 crore
o Core Fee Income grew 26% YoY and 14% QoQ to Rs 829 crore
o Cost to Income was 64.2% vs 70.8% for Q4 FY23, down 660 bps YoY
o Net Profit grew 30% YoY & 51% QoQ to Rs 353 crore;
o ROA was 1.08% vs 1.00% for Q4 FY23;
· Steady Deposits Growth; with increased growth on Granular Retail Deposits:
o Total Deposits grew 22% YoY & 12% QoQ to Rs 103,494 crore
o CASA grew 15% YoY to Rs 36,448 crore. CASA ratio at 35.2%
o Deposits less than 2 crore grew 24% YoY & 6% QoQ to Rs 43,753 crore; at 42.3% of total deposits
· Strong Advances Growth; with focus on secured retail assets & commercial banking (mid- corporates and SME):
o Net Advances book grew 20% YoY and 5% sequentially to Rs 83,987 crore
o Retail Advances book grew 30% YoY and 6% sequentially to Rs 49,147 crore
o Retail disbursement for Q4 FY 24 at Rs6,163 crore; of which Rs 2,009 crore was towards new secured retail products
o Retail: Wholesale mix at 59:41
o Secured retail products grew 43% YoY
o Housing loans grew 39% YoY; Rural vehicle finance grew 116% YoY; LAP grew 18% YoY
o Commercial Banking grew 17% YoY to Rs 9,115 crore
o Total customers at 15.57mn vs 12.91mn in Q4 FY23, an increase of 2.66mn
· Well capitalized for medium term growth with stable liquidity:
o Overall capital adequacy was 16.18%; Common Equity Tier 1 ratio was 14.38%
o Average Liquidity Coverage Ratio at 140%
· Improving Asset Quality:
o Gross NPA ratio improved to 2.65% vs 3.37% as at 31st March 2023, improved by 72 bps in a year
o Net NPA ratio improved to 0.74% vs. 1.10% as at 31st March 2023, improved by 36 bps in a year
o Provision Coverage Ratio including technical write offs was 89.8% vs 85.0% as at 31st March 2023, improved 480 bps in a year
o Credit cost at 53bps
o The total provisions of the Bank including specific, general and contingent at 105% of GNPA
Expanding Distribution Presence
o As of 31st March 2024, the Bank has 1817 total touchpoints of which 545 are bank branches and 1,272 business correspondent branches. Of 1272 BC branches, 297 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 952 business correspondent branches. 28 new Bank branches and 106 new BC branches added in FY24.
Key financials:
Rs in crore | Q4 FY24 | Q4 FY23 | YoY | Q3 FY24 | QoQ | FY24 | FY23 |
Net Interest Income | 1,600 | 1,357 | 18% | 1,546 | 3% | 6,043 | 4,998 |
Other Income | 875 | 674 | 30% | 778 | 13% | 3,043 | 2,489 |
Net Total Income | 2,475 | 2,031 | 22% | 2,323 | 7% | 9,086 | 7,488 |
Operating Profit | 887 | 594 | 49% | 765 | 16% | 3,031 | 2,202 |
Reported Net Profits | 353 | 271 | 30% | 233 | 51% | 1,168 | 883 |
Net Interest Margin | 5.45% | 5.62% |
| 5.52% |
| 5.49% | 5.24% |
Rs in crore | March 31, 2024 | March 31, 2023 | YoY | Dec 31, 2023 | QoQ |
Advances (Net) | 83,987 | 70,209 | 20% | 79,949 | 5% |
Retail Advances (Net) | 49,147 | 37,778 | 30% | 46,371 | 6% |
Deposits | 103,494 | 84,887 | 22% | 92,746 | 12% |
CASA Deposits | 36,448 | 31,717 | 15% | 31,338 | 16% |
Investments (Net) | 29,576 | 28,875 | 2% | 27,852 | 6% |
Key ratios:
Particulars (in %) | Q4 FY24 | Q4 FY23 | Q3 FY24 | FY24 | FY23 |
Net Interest Margin | 5.45 | 5.62 | 5.52 | 5.49 | 5.24 |
Cost to Income | 64.2 | 70.8 | 67.1 | 66.6 | 70.6 |
Return on Assets | 1.08 | 1.00 | 1.03* | 1.03* | 0.83 |
Return on Equity | 9.73 | 8.11 | 8.89* | 8.85* | 6.69 |
