Private sector RBL Bank has released the results for the July-September quarter of the current financial year.
The bank’s profit has declined by 24 percent to Rs 223 crore in this quarter.
RBL Bank on Saturday said profit declined due to asset quality challenges arising from credit card and small loan accounts.
The bank’s profit in the same quarter of the last financial year was Rs 294 crore. The profit in the April-June quarter of the current financial year was Rs 372 crore.
What did the CEO say
RBL Bank CEO and MD R Subramaniakumar said the stress in micro finance accounts is due to industry-wide issues, but on the credit card front where the regulator is talking about the risk to the industry is due to internal factors.
A senior official of the bank said that it is hopeful that the challenges on credit cards will be resolved by the end of the December quarter, but the problem on micro loans may persist for a longer time.
Fresh slippage almost doubled to Rs 1,026 crore during the quarter and about 70 per cent of this increase came from credit card accounts, while the remaining increase came from micro finance, an official said.
Despite 15 per cent growth in advances, its core net interest income grew only nine per cent at Rs 1,615 crore during the quarter and this slow growth was mainly due to asset quality issues in micro finance institutions (MFIs) and credit cards.
share status
Talking about RBL Bank shares, it increased by 1.43% to reach Rs 205.45 on Friday. The stock had risen by 2 percent during trading compared to a day earlier.
During this period the share price reached Rs 208.15. On January 11, 2024, the share reached Rs 300.50. This is the 52-week high of the stock.
The stock fell to a low of Rs 189.65 on October 8, 2024. This is the 52-week low level of the stock. From this perspective, the stock has been in recovery mode for the last few days.
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