Private sector lender RBL Bank reported a 34 per cent drop in its net profit to ₹75 crore for the quarter-ended March 31, 2021 led by a sharp rise in provisions and lower interest income. Its net profit stood at ₹114 crore in the fourth quarter of 2019-20.
The bank’s net profit for fiscal year 2020-21 increased marginally to ₹508 crore from ₹506 crore in 2019-20.
“Net profit at ₹508 crore for 2020-21, similar to 2019-20, is down quarter-on-quarter due to accelerated/additional prudential provisioning,” RBL Bank said.
For the fourth quarter, net interest income declined by 11 per cent to ₹906 crore as against ₹1,021 crore in the same period in FY20. Net interest margin also fell to 4.17 per cent in the fourth quarter last fiscal as against 4.93 per cent a year ago.
However, other income grew by a robust 38 per cent to ₹688 crore in the fourth quarter in 2020-21 versus ₹501 crore a year ago. Provisions surged by 25.6 per cent to ₹766 crore in the fourth quarter last fiscal as against ₹610 crore a year ago.
Provision coverage ratio was at 72 per cent in the fourth quarter as against 68.8 per cent in the third quarter and 64 per cent in the fourth quarter in 2019-20.
Gross non performing assets stood at 4.34 per cent of gross advances as on March 31, 2021 as against 3.62 per cent as on March 31, 2020. Net NPAs stood at 2.12 per cent of net advances as on March 31, 2021 versus 2.05 per cent a year ago.
Vishwavir Ahuja, Managing Director and CEO, RBL Bank said “We have dealt with the impact of the Covid pandemic fairly satisfactorily in as much as we have taken several steps to strengthen the franchise, by building strong capital buffers, deepening and expanding the deposit base, granularising and improving the quality of the balance sheet, maintaining net NPAs at satisfactory levels, similar to last year, while maintaining overall profitability.”