The net interest income, or the core income, of the bank grew at a slow pace, registering a 6% year-on-year growth to ₹1,028 crore compared with ₹970 crore in the year-ago quarter. Operating profit was down 31% to ₹529 crore.
“Our asset quality position has been on an improving trend, and I hope it lays to rest any concerns over a large stressed book,” said R Subramaniakumar, MD, RBL Bank. “Our credit cost should also be sharply lower this year. Profitable growth with continuity and executing our plans is the key focus. We will focus on building granular deposits even as we run off the surplus liquidity. We don’t envisage raising equity capital for the next 18-24 months.”
The asset quality parameters of the bank improved with the gross non-performing loan ratio at 4.08% versus 4.99% in the June quarter of the previous year.
Net interest margin stood at 4.4% at the end of the June quarter, with the management guiding for an improvement in this ratio.