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Published: January 28, 2019 6:39 PM IST 
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Higher margins, advances boost RBL Bank net 36% to Rs 225 cr
Mumbai, Jan 28 (PTI) Small-sized private sector lender RBL Bank Monday reported a 36 percent growth in December quarter net at Rs 225.2 crore, helped by margin expansion and also healthy growth in acr
Mumbai, Jan 28 (PTI) Small-sized private sector lender RBL Bank Monday reported a 36 percent growth in December quarter net at Rs 225.2 crore, helped by margin expansion and also healthy growth in across income lines.
The core net interest income grew at healthy 40 percent at Rs 655.1 crore, boosted by higher margin which touched 4.12 percent from 3.89 percent and a 35 percent loan growth, while other income clipped past 45 percent to Rs 374.1 crore on improvement in fee lines.
Managing director and chief executive Vishwavir Ahuja attributed the margin expansion primarily to a shift in business mix to more retail lending and also to an improved loan pricing ability. He also exuded confidence of maintaining the margins at the higher level.
Retail advances now constitute 43 percent of its loan book with the rest being wholesale lending, he said, adding the microlending book constitutes 13 percent which has been particularly accretive from a margin perspective.
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Share of the low-cost current and saving account improved to 24.57 percent from 24.03 percent in the quarter.
Total provisions almost doubled to Rs 160.68 crore, while the provision coverage ratio went up to over 62 percent and Ahuja hinted that there will be higher provisioning next quarter to take the PCR further up.
Gross non-performing assets improved to 1.38 percent from 1.56 percent in the year-ago period.
Its total capital adequacy come down to 12.86 percent, but Ahuja said that it will not need a fund raising for the next 12-18 months.
RBL Bank has not bought any NBFC portfolios during the quarter and its exposure to the troubled sector is also flat.
The bank scrip closed 1.85 percent down at Rs 563.70 on the BSE as against a 1.02 percent correction in the benchmark.
This is published unedited from the PTI feed.