RBL bank shares climbed more than 4 per cent on NSE (National Stock Exchange), after bank declared their Q3 business update which revealed that collection efficiency for microfinance stood and staggering 98 per cent.
The RBL Bank shares went on to touch the day high level of Rs 169.68 per share on the Indian exchanges after hitting the opening bell level at Rs 163.89 per share on the Indian bourses.
RBL bank shares concluded on Rs 166.46 per share in the last trading session with jump of 2.25 per cent amounting to Rs 3.67 per share on the indian exchanges.
Q3 Business update
For the quarter ending December 31, 2024, wholesale advances increased 5 per cent YoY, while retail advances increased 20 per cent YoY. Commercial banking advances increased 21 per cent year over year within the wholesale segment.
Secured retail advances (apart from credit cards and microfinance) increased 37 per cent year over year within the retail segment. The ratio of wholesale to retail advances was roughly 61:39.
Microfinance collection efficiency
For December 2024, the bucket collection efficiency for microfinance advances was 98.4 per cent, while for September 2024, it was 97.51 per cent.
According to the regulatory filing, the bank stated that it is still committed to increasing the proportion of granular retail deposits in its overall deposit mix. As of December 31, 2024, deposits under Rs 3 crore accounted for roughly 50.3 per cent of the bank’s total deposits.
Net interest margin and income
The bank’s standalone net profit for the September quarter (Q2FY25) was Rs 223 crore, a 24 per cent YoY and 40 per cent QoQ decline.
Interest reversals from slippages and lower disbursements in high-yielding segments contributed to the lower net interest income (NII).
The bank recorded its lowest net interest margin (NIM) in the previous five quarters, at 5.04 per cent.
