Yahoo Finance

• Advances Growth: 15% year-on-year, 1% sequentially.

• Retail Book Growth: 24% year-on-year, 2% sequentially.

• Non-Microfinance Retail Disbursals: INR 3,200 crores, 18% sequential growth.

• Housing Loans Growth: 56% year-on-year.

• Rural Vehicle Loans Growth: 58% year-on-year.

• Commercial Banking Growth: 17% year-on-year.

• Granular Deposits Growth: 22% year-on-year, 4% sequentially.

• CASA Growth: 13% year-on-year, 10% sequentially.

• NII: INR 1,615 crores, 9% year-on-year decrease, 5% sequential decrease.

• Other Income: INR 927 crores, 32% year-on-year increase, 15% sequential increase.

• Cost-to-Income Ratio: 64.2%, improved from 65.7% last quarter.

• GNPA: 2.88%.

• NNPA: 0.79%.

• Provision Coverage Ratio (PCR): 73%.

• Net Slippages: INR 87 crores, primarily from cards and microfinance.

• Net Profit: INR 223 crores, 24% year-on-year decrease.

• Capital Adequacy Ratio: 15.92%.

• Core Equity Tier 1 Ratio: 14.19%.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:540065.

Release Date: October 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RBL Bank Ltd (BOM:540065) reported a robust growth in secured retail assets, increasing from INR10,000 crores in September 2022 to INR23,000 crores in September 2024.

• The bank's granular deposits grew by 22% year-on-year, with total deposits increasing by 20% over the last year.

• RBL Bank Ltd (BOM:540065) has successfully reimagined its wholesale banking approach, focusing on well-rated clients and mid-sized corporates, leading to a self-funded and derisked business model.

• The bank's branch banking business continues to drive granular deposit growth without compromising on deposit rates, despite a challenging deposit environment.

• RBL Bank Ltd (BOM:540065) has made significant progress in diversifying its revenue streams, with newer secured products like affordable home loans and small business loans reaching 15% of disbursements.

Negative Points

• The bank faced near-term challenges in credit card slippages due to the transition of collection services, impacting credit quality.

• Microfinance business experienced asset quality issues due to borrower over-leverage and multiple lenders, affecting near-term performance.

• RBL Bank Ltd (BOM:540065) reported higher-than-normal provisioning primarily due to slippages in cards and microfinance, leading to increased credit costs.

• The bank's net profit for the quarter was down 24% year-on-year, impacted by increased provisioning and credit costs.

• RBL Bank Ltd (BOM:540065) anticipates continued pressure on microfinance slippages in the near term, with expectations of improvement only by Q4.