RBL Bank shares tank nearly 14% despite private lender reports jump of 41% in Q1 net profit at Rs 267 cr

New Delhi: Shares of RBL Bank on Friday tumbled nearly 14 percent after the lender said that given the difficult environment, it expects to face challenges on some of the exposures in the near-term.

The scrip cracked 13.71 percent to close at Rs 500.35 on the BSE. During the day, it tumbled 14.33 percent to Rs 496.70.

On the National Stock Exchange (NSE), shares plunged 13.75 percent to close at Rs 500 apiece.

 RBL Bank shares tank nearly 14% despite private lender reports jump of 41% in Q1 net profit at Rs 267 cr

Representational image. Reuters.

In terms of traded volume, 15.40 lakh shares were traded on the BSE and over two crore shares on the NSE during the day.

The bank on Friday reported a jump of 41 percent in the June quarter net profit at Rs 267.10 crore on higher fee income and fall in bad loans.

The private sector lender registered a profit of Rs 190 crore during the April-June quarter of 2018-19.

"The bank has had a good quarter of strong performance and has continued to maintain its growth momentum and improvement in operating metrics. However, given the difficult environment we do expect to face some challenges on some of our exposures in the near term," Managing Director and Chief Executive Officer Vishwavir Ahuja said.

At the same time, given the strong momentum in the bank's businesses, RBL Bank expects to maintain a healthy profitable growth over the coming quarters, Ahuja said.

Total income during June quarter of the ongoing financial year rose to Rs 2,503.88 crore, as against Rs 1,690.19 crore in the year-ago period, the bank said in a regulatory filing.

Gross non-performing assets (NPAs) fell to 1.38 percent of the gross advances by end of June 2019, as against 1.40 percent by the end of June 2018. Net NPAs or bad loan ratio also came down to 0.65 percent from 0.75 percent.

Updated Date: Jul 19, 2019 18:53:59 IST