RBL Bank on a strong footing

RBL Bank rose almost 2% to Rs.533.85 in the opening bell session. Its 52-week high is at Rs.600 and low at Rs.325.65.

The bank posted a very good performance for Q2FY18, both in terms of profitability as well as asset quality.

Net profit showed a 68% (YoY) jump to Rs.151 crore – this was partly thanks to the Rs.28 crore exceptional expense it had for Q2FY17, which dented the bottomline. A 39% rise in net interest income and 43% increase in non-core income added to the rise in profit.

In terms of asset quality, the Bank’s Gross NPA went down a bit from 1.46% to 1.44% (QoQ) and Net NPA too showed a marginal decline from 0.81% to 0.78%.

The Bank has stated that slippages were to the tune of Rs.90 crore and 50% of this was on account of demonetization, which impacted micro loans.