RBL Bank Business Update – June quarter shows 18% YoY growth in deposits

Private sector lender RBL Bank announced its Q1FY245  update yesterday, highlighting major growth in deposits and advances. As of June 30, 2024, the bank’s total deposits increased by 18% year-on-year to Rs.101,351 crore, up from Rs.85,636 crore on June 30, 2023. However, deposits saw a 2% decline on a quarter-on-quarter basis. The shares of RBL Bank Ltd are at Rs. 260.60, down 2.09% today. 

Advances Growth

The bank’s gross advances rose by 18% year-on-year, reaching Rs.88,455 crore as of June 30, 2024, compared to Rs.74,761 crore a year earlier. On a quarter-on-quarter basis, advances showed a 3% increase, showing lending activity. Retail advances grew by 31% YoY, while wholesale advances increased by 2% YoY for Q1FY25, with commercial banking advances within the wholesale segment seeing a 23% YoY growth. The retail-to-wholesale advances ratio was approximately 62:38. Going ahead, the bank continues to focus on increasing the share of granular retail deposits, with deposits below Rs. 3 crore constituting about 49.3% of the total deposits as of Q1FY25.

CASA Ratio & Net Profit 

RBL Bank’s CASA (Current Account Savings Account) ratio improved to 37.3% as of June 30, 2024, from 32.6% YoY and 35.2% quarter-on-quarter. Despite a 3% year-on-year growth, there was a 9% quarter-on-quarter decline in the CASA ratio. In Q1FY24, the bank reported a net profit of Rs.352.5 crore, surpassing  expectations and reflecting a 30.1% increase.

Net Interest Income & Asset Quality Q4FY23-24

For the last quarter Q4FY24, RBL Bank’s net interest income (NII) stood at Rs.1,599.8 crore, 17.9% higher than the Rs. 1,357.3 crore recorded in Q4FY23, while the gross NPA percentage fell to 2.65% from 3.12% year-on-year.

New Initiatives

In addition to its financial performance, RBL Bank announced new initiatives aimed at digital transformation and improvement of customer service. Going ahead, the bank plans to invest in technology to streamline operations and offer updated banking solutions. 

Conclusion: RBL Bank’s Q1 business update highlighted growth and improved financial metrics, although some areas like CASA  show room for improvement,  positioning itself well in the sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.