Friday, October 29, 2021

RBL Bank Slumps 15% After Profit Declines IN Q2 | STOCK OUTLOOK

     

RBL Bank Slumps 15% After Profit Declines, Asset Quality Deteriorates In Q2


Shares of the Mumbai-based private lender - RBL Bank - dropped as much as 15 per cent to hit an intraday low of ₹ 172.10 a day after it reported September quarter earnings. RBL Bank's net profit declined sharply on account of higher provisioning in the second quarter of current financial year. The bank reported net profit of ₹ 31 crore compared with ₹ 144 crore during the same quarter last year, marking a decline 78 per cent. Its net interest income or the difference between interest earned on loans and interest expended on deposits declined 2 per cent to ₹ 915, annually from ₹ 932 crore in the year ago period.

RBL Bank's asset quality deteriorated as its gross non-performing assets (NPAs) as a percentage of total advances came in at 5.4 per cent in September quarter compared with 4.99 per cent in the previous quarter. Its gross NPAs stood at ₹ 3,131 crore. Net NPAs also jumped to 2.14 per cent from 2.01 per cent in the previous quarter.

Its provisions for contingencies spiked 34 per cent annually to ₹ 651 crore versus ₹ 488 crore in the corresponding period a year ago.


STOCK OUTLOOK

Stock can remain sideways with negative nature and can test 160 . Currently avoid long position. 


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