RBL Bank shares slide 3% despite strong March quarter results

Shares of RBL Bank dropped more than 3% on Monday, April 29, despite the Mumbai-headquartered lender reporting a strong growth in net profit in March quarter (Q4FY24).

In its quarterly results released on Saturday, April 27, the private lender reported a net profit of ₹353 crore in Q4FY24, reflecting a 30% growth compared to ₹271 crore in the same period last year.

RBL Bank’s net interest income (NIIs) surged 18% year-on-year to ₹1,599.8 crore in Q4FY24, up from ₹1,357 crore in Q4FY23.

RBL Bank’s net interest margin was at 5.45% in Q4FY24, down from 5.62% in the same period a year ago.

Shares of RBL Bank were in focus on Monday after the Q4 results. The banking stock dropped as much as 3.16% to an intraday low of ₹257 apiece on the NSE on Monday. However, shares of RBL Bank recovered some of early losses to close at ₹262.3 apiece, down 1.17%, on the NSE.

In the quarter ending March 2024, RBL Bank saw a notable improvement in its asset quality as the gross non-performing assets (NPA) ratio improved to 2.65% from 3.12% in the preceding December 2023 quarter. In absolute terms, the bank’s gross NPA stood at ₹2,271 crore in the fourth quarter, marking an 11% reduction from ₹2,551 crore in the third quarter.

During the quarter under review, RBL Bank also reported a marginal improvement in its net non-performing assets (NPA) ratio at 0.74% against 0.80% in Q3FY24.

The net NPA decreased to ₹619.3 crore in Q4FY24, marking a 2.6% decline compared to ₹635.6 crore in Q3FY24.

RBL Bank serves its customers through five business verticals of corporate banking, commercial banking, branch and business banking, retail assets and treasury, and financial markets operations. With a network comprising 545 branches, 1,272 business correspondent branches, and 395 ATMs, the bank caters to customers in 28 states and Union Territories.