The private lender, RBL bank’s shares tanked down by 2.78 per cent at Rs 148.20 apiece in today’s early trade on National Stock Exchange, despite 6 per cent growth in its net profit in the third quarter that ended on December 31, 2021.
In its quarterly earnings statement for the third quarter of FY22, RBL Bank articulated its total deposits rose by 10 per cent on a year-on-year basis to Rs 73,639 crore but slipped 3 per cent from Rs 73,588 crore reported in Q2FY22. The bank’s CASA boosted 21 per cent YoY to Rs 25,318 crore, despite a 5 per cent quarterly plunge from Rs 26,734.
“This has been a turnaround quarter as we have seen a sharp improvement in both profitability and asset quality. Our business and advances momentum is now firmly on a positive trajectory, and we expect this to continue with retail also returning to growth,” said Rajeev Ahuja, interim MD and CEO of RBL Bank.
The bank’s gross non-performing asset (NPA) ratio dwindled from 5.4 per cent in Q2FY22 to 4.97 per cent, while its net NPA ratio too decreased from the previous quarter’s 2.14 per cent to 1.85 per cent in the latest quarter. “As the stress from the pandemic abates and with the overall improvement in the economic environment, we are confident of continuing and improving this performance over the next fiscal,” Rajeev further added.
Ahuja also stated that the bank touched the milestone of 500 branches in Q3FY22, added 55 branches during the quarter. “In addition, the bank also has 1,424 business correspondent branches, of which 274 are banking outlets. RBL Finserve Limited (RBL Finserve), a 100 per cent subsidiary of the Bank, accounts for 874 business correspondent branches,” the bank said.