Its NII grew by seven per cent Rs 932 crore. The Net Interest Margin (NIM) was flat YoY at 4.34 per cent. Sequentially NIMs fell from 4.85 per cent in first quarter ended June 2020 (Q1Fy20) due to proactive reversal of interest income on Non-Wholesale Advances expected to slip by Q3 FY21. Other income rose by just three per cent to Rs 456 crore.
The provisions and contingencies declined to Rs 525.57 crore in Q2Fy21 from Rs 540.58 crore in Q2Fy20. It set aside Rs 310 crore as additional provisions for Covid-19, taking the total Covid-19 provisions to Rs 664 crore Since the March quarter.
The advances declined four per cent to Rs 56,162 crore in September 2020 from Rs 58,476 crore a year ago. The deposits were up three per cent to Rs 64,506 crore in September 2020 from Rs 62,829 crore in September 2019.
Vishwavir Ahuja, MD & CEO, RBL Bank
said “We continue to be cautious. Balance sheet protection, capital preservation and risk mitigation continues to be of paramount importance. We are seeing growth revival especially in retail businesses. Being well positioned on capital and liquidity, we are growing in our chosen segments”.
The gross non-performing assets (NPAs) rose to 3.34 per cent in September 2020 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.
If not for the Supreme Court's interim order on classification of accounts, its gross NPA would have been 3.49 per cent and net NPA would have been 1.49 per cent.
The bank reported slippages to the tune of Rs 145 crore in the current quarter. If the Supreme Court’s order would not have been effect, bank’s slippages would have been higher by Rs 90 crore.
Overall capital adequacy ratio (CAR) at 16.5 per cent with Common Equity Tier 1 ratio of 15.12 per cent at the end of Q2FY21.
The lender is expecting capital to the tune of Rs 1,566 crore in the next 10 days. Of which, Maple II B.V will put in Rs 1,000 crore for about 9.5 per cent stake in the bank. Post the transactions, the lender’s capital adequacy ratio would become 18.7 per cent.