Higher advances boost RBL net profit 45% to Rs 141 cr

(Eds: Updating with quotes and more data) Mumbai, Jul 20 (PTI) Private sector lender RBL Bank today reported a 45 per cent jump in the June quarter net at Rs 141 crore, helped by a healthy increase i

(Eds: Updating with quotes and more data) Mumbai, Jul 20 (PTI) Private sector lender RBL Bank today reported a 45 per cent jump in the June quarter net at Rs 141 crore, helped by a healthy increase in core interest income and trading income.

The bank reported net interest income of Rs 378.38 crore, up 55 per cent up over the same period a year ago, while the other income was up 53 per cent to Rs 257 crore.

Executive director Rajeev Ahuja said there was a 50 per cent jump in the treasury income, which along with the rise in core fees, helped the other income grow.

The bank registered a 40 per cent growth in advances and 37 per cent growth in deposits during the reporting quarter. Share of the low cost Casa deposits went up to 22 per cent from the 18 per cent at the same time last year, while net interest margin rose to 3.54 per cent from 2.80 per cent.

On the asset quality front, gross non-performing assets moved up to 1.46 per cent from the 1.13 per cent in the year-ago period, driven primarily by the reverses on the microlending book, which has been affected by the note ban.

Ahuja said 80 per cent of the fresh slippages of Rs 81 crore came from the micro-lending segment.

On speculation of the bank being interested in acquiring microlender Bharat Financial Inclusion, formerly SKS Microfinance, Ahuja declined to comment saying the bank does not comment on “conjectures”.

When asked about its inorganic growth strategy, he said there is nothing on the table at present and the bank is focused on growing its business organically.

The bank scrip closed 0.19 per cent up at Rs 538.95 on the BSE as against a 0.16 per cent correction in the benchmark Sensex.

This is published unedited from the PTI feed.