RBL Bank dunks into red

RBL Bank posted a 47% (YoY) decline in net profit for Q1FY21 at Rs.141 crore – once again, on account of higher provisioning.

The Bank set aside Rs.240 crore for Covid, taking the total money set aside due to possible reverses because of the pandemic to Rs 350 crore. It also increased its provision coverage ratio (PCR) by setting aside an additional sum of over Rs 200 crore in March. Total provisions for the quarter came in at Rs.500 crore v/s Rs.196 crore (YoY).

Its loan book under moratorium at end of 30th June stood at 13.7% v/s 33% in April.

The markets seems to have given it a thumbs down as the stock went down almost 4% to Rs.175, after having risen over 4% to an intraday high at Rs.189.