RBL Bank declared its Q1FY20 performance a few minutes ago and the market is not too happy though the earnings were good. The market is worried about more slippages in the coming months because in the bank’s Managing Director and Chief Executive Officer Vishwavir Ahuja, in the Press Release said, “Given the difficult environment, we do expect to face some challenges on some of our exposures in the near term.”

The earnings highlight:

• The Bank posted a 41% (YoY) rise in net profit at Rs.267 crore.
• Advances (Net) at 56,836.7 crore and Deposits at 60,810.9 crore both increased up by 35% on Year on Year (YoY) basis
• Net Interest Income (NII) up by 48% to 817.3 crore
• Other Income up by 48% to 481.2 crore
• Core fee income up by 42% to 411.1 crore
• NIM improves to 4.31% up from 4.04% in Q1 FY19. Cost to income ratio is at 52.35%
• Gross NPA ratio at 1.38% (1.40% in Q1 FY19); Net NPA ratio at 0.65% (0.75% in Q1 FY19); Provision coverage ratio increases to 69.13% (60.41% in Q1 FY19)
• Return on Assets at 1.31% up from 1.26% in Q1 FY19
• Current Accounts & Savings Accounts (CASA) ratio improved to 25.83% as at June 30, 2019 from 24.42% as at June 30, 2018
• Capital Adequacy Ratio as per BASEL III Capital regulations as at June 30, 2019 was 12.07% against 14.23% as at June 30, 2018
• The bank has 332 branches as of June 30, 2019. In addition the Bank also has 1,013 business correspondent branches, of which 228 are banking outlets.

The stock price has tumbled down, figuring in the top five losers on the BSE. It hit an intraday low at Rs.528, down 9%.