Here are key takeaways from the earnings of both these companies!
RBL Bank’s Q1 Earnings Highlights:
1) RBL Bank’s total revenue grew 18% YoY and 2% quarter-on-quarter (QoQ) to Rs 1,932 crore for the reported quarter versus Rs 1,641 crore in Q1FY23 and Rs 1,885 crore in Q4FY24.
2) The Return on Assets (ROA) stood at 1.01% in Q1FY24 versus 1% in Q4FY23
3) Operating profit grew 22% YoY and 9% QoQ to Rs 647 crore. Net profit grew 6% QoQ.
4) Net Interest Income (NII) grew 21% YoY and 3% QoQ to Rs 1,246 crore while Net Interest Margin (NIM) was at 4.84% versus 4.36% for Q1 FY23.
5) Other Income grew 12% YoY and 2% QoQ to Rs 685 crore. Cost to income was reported at 66.5% versus 67.8% for Q1FY23 and 68.5% for Q4FY23.
6) CASA grew 12% YoY and 1% QoQ to Rs 31,927 crore. CASA ratio was at 37.3% versus 36.0% as on June 30, 2022.
7) Deposits: Total deposits grew 8% YoY and 1% QoQ to Rs 85,636 crore with retail deposits (as per LCR definition) growth at 19% YoY and 3% QoQ to Rs 37,400 crore.
8) Advances: Net advances book grew 21% YoY and 4% sequentially to Rs 73,087 crore with retail advances book growth at 34% YoY and 8% sequentially to Rs 40,866 crore.
9) Retail disbursement for Q1FY24 was at Rs 4,100 crore with the retail-wholesale mix at 56:44. Housing loans grew 77% YOY; rural vehicle finance grew 194% YoY. The company issued 6.3 lakhs credit cards in this quarter taking the total cards outstanding to 4.6 million.
10) Asset quality: Gross NPA ratio improved to 3.22% versus 3.37% reported in the March 2023 quarter and 4.08% in the June 2022 quarter, It improved by 87bps in a year. Net NPA ratio improved to 1.% versus 1.10% in Q4FY23 and 1.16% in Q1FY23.
Au Small Finance Bank Q1 Earnings Highlights:
1) Gross advances grew by 29% YoY to Rs 63,635 crore compared to Rs 49,349 crore in Q1FY23. Of the total advances, vehicle loans contributed 33% and Secured Business Loans (SBL), Home Loan as well as Commercial Banking Loans contributed 30%, 7% and 21% respectively.
2) Total deposits were up by 27% YoY to Rs 69,315 crore compared to Rs 54,631 crore in Q1FY23. The current account deposits increased by 47% YoY in Q1FY24 whereas savings account deposits saw an increase of 11% YoY.
3) The bank’s pre-provisioning operating profit (PPoP) for Q1FY24 grew 39% YoY to Rs 546 crore compared to Rs 394 crore in Q1FY23.
4) The bank’s NII grew 28% YoY to Rs 1,246 crore compared to Rs 976 crore during Q1FY23. Meanwhile, NIM for Q1FY24 stood at 5.7% compared to 5.9% in Q1FY23.
5) The Return on Asset (ROA) and Return on Equity (ROE) stood at 1.7% and 13.8% respectively even as the bank continued to invest “significantly in people, digital, branding, products and distribution”, the exchange filing said.
6) The bank had a Liquidity Coverage Ratio (LCR) of 151% as on March 31, 2023, and the focus in Q1FY24 was to consume this excess liquidity instead of growing high-cost deposits, the bank filing said. Accordingly, in the June 2023 quarter, the bank reduced its peak deposit rates by 25 basis points across savings and retail term deposits. The retail term deposits saw a growth of 8% on QoQ basis.
7) Asset Quality: Bank’s asset quality improved on YoY basis with GNPA at 1.76% in Q1FY24 versus 1.96% in Q1FY23. On a QoQ basis, GNPA increased 10bps from 1.66% as on Q4FY23 due to seasonality, the filing said. Net NPA stood at 0.55% of the net advances in Q1FY24 versus 0.56% in Q1FY23.
8) Provision coverage ratio remains at 73% including technical write-off and floating provision.
9) Company crossed a milestone of 600,000+ live credit cards with monthly spends now at Rs 1,250 crore in June 2023.
10) Bank acquired 3.75 lakh customers in Q1FY24 of which 45% was via digital products and channels.
