RBL Bank has recently announced its unaudited financial results for the quarter ending September 30, 2024, revealing notable trends in asset quality, particularly regarding Non-Performing Assets (NPA) and Gross Non-Performing Assets (GNPA). A detailed examination of these figures provides insights into the bank’s ongoing efforts to manage credit risk effectively.
Examining the quarter-on-quarter (QoQ) performance, the Gross NPA ratio rose from 2.69% as of June 30, 2024, to 2.88% in September 2024. This represents an increase of 19 bps from the previous quarter, a noteworthy rise that suggests the bank faced challenges in maintaining its asset quality in the short term. The deterioration in GNPA from the previous quarter highlights the need for ongoing vigilance and strategic interventions to manage loan performance.
Meanwhile, the Net NPA ratio also saw an increase from 0.74% in Q1 FY25 to 0.79% in Q2 FY25, indicating a growing concern about the quality of the bank’s loan book as some loans transition into non-performing categories. Despite this, RBL Bank maintains a robust Provision Coverage Ratio (PCR), including technical write-offs, at 89.35%, reflecting the bank’s proactive stance in provisioning for potential losses.
