RBL had posted a 165 per cent rise in net profit to Rs 144 crore in the second quarter ended September 2020 (Q2FY21) on higher net interest income (NII) and a dip in provisions and contingencies. Its NII grew seven per cent to Rs 932 crore and the Net Interest Margin was flat YoY at 4.34 per cent.
The gross non-performing assets (NPAs) rose to 3.34 per cent in September from 2.6 per cent in September 2019. The net NPAs declined to 1.38 per cent from 1.56 per cent. The provision coverage ratio (PCR) improved to 74.75 per cent in September 2020 from 58.45 per cent a year ago.
The lender will continue to be cautious. Balance sheet protection, capital preservation and risk mitigation will continue to be of paramount importance for the bank.
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