RBL Bank (RBLBANK) Q4 15/16 earnings summary

Executive summary

• FY16 net total income rose 36.46% YoY to ₹1,309.75 crore and net profit increased 41.18% to ₹292.48 crore.

• Deposits grew 42.40% to ₹24,348.65 crore and net advances rose 46.92% to ₹21,229.08 crore.

• Growth was accompanied by higher NPAs; capital adequacy remained at 12.94%, above the 9.625% regulatory minimum including the conservation buffer.

Financial highlights

• Net interest income increased 47.24% to ₹819.21 crore; other income grew 21.60% to ₹490.54 crore.

• Operating expenses rose 27.96% to ₹767.34 crore, reflecting employee costs, outsourcing, new branches, technology, branding and communications.

• Provisions and contingencies increased 63.41% to ₹249.93 crore.

• Savings deposits grew 83.61% to ₹1,758.21 crore; current account deposits rose 26.36% to ₹2,779.64 crore, with CASA at 18.64% of deposits.

Outlook and guidance

• Vision 2020 centers on a scalable, technology-enabled franchise, service quality, process upgrades and partnerships with fintech firms.

• Directors expected sustained business growth in the coming year; retail lending plans emphasized measured portfolio growth, risk-adjusted returns and new sourcing channels.