Home / Business and Economy / RBL Bank Profit Soars Over 300% Amidst Strategic Buyout
RBL Bank Profit Soars Over 300% Amidst Strategic Buyout
25 Apr
Summary
- Net profit surged over threefold to Rs 230 crore in Q4.
- Emirates NBD plans majority stake acquisition for $3 billion.
- Gross NPA ratio improved to 1.45%, net NPA at 0.39%.
RBL Bank reported a remarkable surge in net profit for the fourth quarter, soaring over three-fold to Rs 230 crore compared to Rs 69 crore in the prior year's period. This significant financial performance was propelled by robust business expansion and a notable improvement in asset quality. The bank's annual net profit also climbed by 18% year-on-year, reaching Rs 822 crore.
The bank's strategic future includes a significant shift as Emirates NBD prepares to acquire a majority stake, up to 74%, in a deal valued at approximately $3 billion. This transaction awaits government approval.
Asset quality showed marked improvement, with the gross non-performing assets (NPA) ratio declining to 1.45% from 1.88% in the previous quarter. The net NPA ratio stood at 0.39%. The bank also saw a reduction in its unsecured loans, now at 24% of its portfolio, a level it aims to maintain.
Despite the positive profit figures, the bank's net interest margin (NIM) experienced a slight dip to 4.41%, the lowest in five quarters. However, net interest income grew 7% year-on-year to Rs 1671 crore, and total deposits increased by 25% to Rs 1.39 lakh crore.
