Gross NPA ratio as at 31st Dec 2024 improved to 2.92% vs 3.12% on YoY basis, improved by 20bps in a year
FinTech BizNews Service
Mumbai, January 17, 2025: The Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter and nine months ended 31st December 2024 at its meeting held on Saturday, 18th January 2025.
Q3 FY25 Results at a Glance
Ø NII grew 3% YoY Rs1,585 crore; NIM at 4.90%
Ø Other Income grew 38% YoY to Rs1,073 crore; Core Fee grew 19% YoY to Rs871 crore
Ø Operating Expenses grew 7% YoY to Rs1,662 crore; Cost to Income ratio improved to 62.5% vs 67.1% for Q3FY25
Ø Operating profit grew 30% YoY to Rs997 crore;
Ø During Q3 FY25, there was tax provision writeback of Rs150 crore due to favourable appellate orders for past years
Ø Bank on prudent basis made additional provision of Rs414 crore on Gross NPAs of Joint Liability Group (JLG) portfolio taking total NPA provision on this portfolio to 85%
Ø After above additional provision, Net Profit was Rs33 crore
Ø Net Advances grew 13% YoY to Rs90,412 crore
Ø Retail Advances grew by 19% YoY to Rs55,199 crore; Retail: Wholesale mix was 61:39; Secured Retail advances grew 38% YoY
Ø Total Deposits grew 15% YoY to Rs106,753 crore; CASA Ratio at 32.8%
Ø Granular Deposits i.e. deposits less than Rs3 crore grew faster at 20% YoY and 3% QoQ to Rs53,719 crore; at 50.3% of total deposits
Ø Including 9M FY25 profits, total capital adequacy was 15.4% vs 16.4% as of 31st December 2023; CET 1 was 13.7% vs 14.6% as of 31st December 2023
Ø Average LCR for Q3 FY25 was 143%
Ø GNPA down 20 bps YoY to 2.92%; NNPA down 26 bps YoY to 0.53%
Ø Overall Provision Coverage Ratio including Technical Write off was 93.46%
9M FY25 Results at a Glance
Ø NII grew 10% YoY Rs4,900 crore; NIM at 5.19%
Ø Other Income grew 29% YoY to Rs2,806 crore
Ø Core Fee grew 20% YoY to Rs2,461 crore
Ø Operating Expenses grew 11% YoY to Rs4,941 crore; Cost to Income ratio improved YoY to 64.1% vs 67.6% for 9M FY25
Ø Operating profit grew 29% YoY to Rs2,766 crore
Ø Net Profit at Rs627 crore; Annualised ROA at 0.61%; Annualised ROE at 5.44%
In reflecting on this quarter’s performance, Mr. R Subramaniakumar, MD & CEO, RBL Bank remarked, “We remain cautious about the short-term challenges emanating from macro-economic environment affecting certain unsecured lending segments. We continue to demonstrate strong growth in chosen areas of secured retail & commercial banking on asset side and granular deposits on liability side. Our core business remains robust and disciplined focus on growth with profitability and customer-centric approach continues to drive meaningful progress. Overall, we are happy to deliver yet another quarter of robust operating performance and growth in business”.
Results Summary for Q3/9M FY25
Steady Operating Performance:
o Net Interest Income (NII) for Q3 FY25 grew 3% YoY to Rs1,585 crore, NIM was 4.90%; For 9M FY25 NII grew 10% YoY to Rs4,900 crore, NIM was 5.19%
o Other Income for Q3 FY25 was up 38% YoY to Rs1,073 crore; For 9M FY25 it grew 29% YoY to Rs2,806 crore
o Core Fee Income for Q3 FY25 was up 19% YoY to Rs871 crore; For 9M FY25 it grew 20% YoY to Rs2,461 crore
o Operating Expenses for Q3 FY25 was up 7% YoY to Rs1,662 crore; For 9M FY25 it grew 11% to Rs4,941 crore
o Cost to Income for Q3 FY25 improved 455bps YoY to 62.5%; For 9M FY25 it improved 346 bps YoY to 64.1%
o Net Total Income for Q3 FY25 grew 14% YoY to Rs2,658 crore; For 9M FY25 it grew 17% YoY to Rs7,706 crore
o Operating profit for Q3 FY25 grew 30% YoY to Rs997 crore; For 9M FY25 it grew 29% YoY to Rs2,766 crore
o Net Profit for Q3 FY25 was Rs33 crore; For 9M FY25 it was Rs627 crore
o ROA for Q3 FY25 was 0.09% & ROE was 0.84%; ROA for 9M FY25 was 0.61% & ROE was 5.44%
· Steady Deposits Growth; with increased focus on Granular Retail Deposits:
o Total Deposits grew 15% YoY to Rs106,753 crore
o CASA grew 12% YoY to Rs35,022 crore. CASA ratio at 32.8%
o Granular Deposits i.e. deposits less than Rs3 crore grew 20% YoY & 3% QoQ to Rs53,719 crore; at 50.3% of total deposits
· Healthy Advances Growth; with focus on secured retail assets & commercial banking(mid-corporates and SME):
o Net Advances book grew 13% YoY to Rs90,412 crore
o Retail Advances book grew 19% YoY to Rs55,199 crore
o Retail: Wholesale advances mix at 61:39
o Housing loans grew 33% YoY; Rural vehicle finance grew 30% YoY
o Commercial Banking grew 21% YoY
· Well capitalized for medium term growth with stable liquidity:
o Including 9M FY25 profits, total capital adequacy was 15.4% vs 16.4% as of 31th December
2023; Common Equity Tier 1 (CET 1) ratio was 13.7% vs 14.6% as of 31th December 2023
o Average Liquidity Coverage Ratio for Q3 FY25 it was 143%
·Asset Quality Trend:
o Gross NPA ratio as at 31st Dec 2024 improved to 2.92% vs 3.12% on YoY basis, improved by 20bps in a year
o Net NPA ratio as at 31st Dec 2024 improved to 0.53% vs. 0.80% on YoY basis, improved by 26bps in a year
o Bank on prudent basis made additional provision of Rs414 crore on Gross NPAs of Joint Liability Group (JLG) portfolio taking total NPA provision on this portfolio to 85%
o Overall Provision Coverage Ratio including technical write offs was 93.46%
o Credit Cost including above additional provision on GNPAs in JLG loans was 139 bps for Q3FY25
o The total provisions of the Bank including specific, general and contingent provision at 110% of GNPA
Expanding Distribution Presence
o As of 31st December 2024, the Bank has 2,011 total touchpoints of which 558 are bank branches and 1,453 business correspondent branches. Of 1,453 BC branches, 297 are banking
outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 1,145 business correspondent branches
Key financials:
Rs in crore | Q3 FY25 | Q3 FY24 | YoY | Q2 FY25 | QoQ | 9M FY25 | 9M FY24 | YoY |
Net Interest Income | 1,585 | 1,546 | 3% | 1,615 | (2%) | 4,900 | 4,443 | 10% |
Other Income | 1,073 | 778 | 38% | 927 | 16% | 2,806 | 2,167 | 29% |
Net Total Income | 2,658 | 2,323 | 14% | 2,542 | 5% | 7,706 | 6,610 | 17% |
Operating Expenses | 1,662 | 1,558 | 7% | 1,632 | 2% | 4,941 | 4,467 | 11% |
Operating Profit | 997 | 765 | 30% | 910 | 10% | 2,766 | 2,144 | 29% |
Net Profit | 33 | 233 | (86%) | 223 | (85%) | 627 | 815 | (23%) |
Rs in crore | Dec 31, 2024 | Dec 31, 2023 | YoY | Sep 30, 2024 | QoQ |
Advances (Net) | 90,412 | 79,949 | 13% | 87,882 | 3% |
Retail Advances (Net) | 55,199 | 46,371 | 19% | 54,723 | 1% |
Deposits | 106,753 | 92,746 | 15% | 1,07,959 | (1%) |
Granular Deposits | 53,719 | 44,876 | 20% | 52,223 | 3% |
CASA Deposits | 35,022 | 31,338 | 12% | 36,224 | (3%) |
Investments (Net) | 29,542 | 27,852 | 6% | 30,373 | (3%) |
Key ratios:
Particulars (in %) | Q3 FY25 | Q3 FY24 | Q2 FY25 | 9M FY25 | 9M FY24 |
Net Interest Margin | 4.90 | 5.52 | 5.04 | 5.19 | 5.53 |
Cost to Income | 62.5 | 67.1 | 64.2 | 64.1 | 67.6 |
Return on Assets | 0.09 | 0.75 | 0.64 | 0.61 | 0.92 |
Return on Equity | 0.84 | 6.48 | 5.76 | 5.44 | 7.74 |
Gross NPA | 2.92 | 3.12 | 2.88 | 2.92 | 3.12 |
Net NPA | 0.53 | 0.80 | 0.79 | 0.53 | 0.80 |
PCR incl. Technical Write-offs | 93.46 | 89.31 | 89.35 | 93.46 | 89.31 |
PCR | 82.17 | 75.08 | 72.98 | 82.17 | 75.08 |
