RBL Bank Q3 profit slips 69% to Rs 70 cr on rise in bad loans; net interest income up 41% to 923 cr

New Delhi: RBL Bank on Wednesday reported a 69 percent dip in its net profit at Rs 69.9 crore for the quarter ended 31 December 2019 on account of rise in bad loans.

#3QWithCNBCTV18 | RBL Bank Q3
Net Interest Margin (NIM) at 4.57% vs 4.31% (QoQ) pic.twitter.com/q2DjCPaQKH

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The  had registered a net profit of Rs 225.20 crore in October-December period of the previous fiscal. However, total income increased to Rs 2,64,430 crore as against Rs 1,029.20 crore for the same period year ago, the bank said in a regulatory filing. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Net interest income was up 41 percent to Rs 922.6 crore during the quarter as against Rs 655.10 crore in the year-ago period. Asset quality of the bank deteriorated with gross non-performing assets (NPAs) rising to 3.33 percent of gross advances as on 31 December 2019 from 1.38 percent in the year-ago period. Net NPAs also rose to 2.07 percent of net loans from 0.72 percent in the corresponding quarter of 2018-19, the bank said. As a result provisions (other than tax) and contingencies rose significantly to Rs 638.29 crore from Rs 160.68 crore in the same quarter a year ago. However, the net interest margin improved year-on-year basis to 4.57 percent in the reported quarter from 4.12 percent. The bank in a separate regulatory filing said it has approved re-appointment of Rajeev Ahuja as the executive director for a period of three years with effect from February 21, 2020, subject to the approval of the Reserve Bank of India (RBI).