RBL Bank saw its stock drop by over 9% after the company announced its Q2 FY25 results, which highlighted some concerning trends. The key takeaway was a sharp 43% increase in slippages quarter-on-quarter (QoQ) and a decline in the Net Interest Margin (NIM) by 63 basis points (bps) QoQ, which spooked investors.
Key financial details:
- Net Profit: The bank’s net profit for Q2 FY25 was ₹22.25 crore, a noticeable decline from ₹37.15 crore in Q1 FY25.
- Total Income: RBL Bank’s total income rose to ₹445.83 crore in Q2 FY25, up from ₹430.17 crore in the preceding quarter.
- Interest Earned: Interest income reached ₹353.09 crore, a marginal rise from ₹349.62 crore in Q1, driven by growth in advances and investments.
Key concerns:
- Slippages: The bank reported a 43% QoQ increase in slippages, raising concerns about asset quality.
- NIM: The bank’s NIM dropped by 63 bps QoQ, a negative indicator for profitability.
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TOPICS:
RBL Bank