News

Published: January 5, 2024
Updated: January 5, 2024

RBL Bank Shows Resilience with Robust Q3 Performance and Strategic Focus

RBL Bank takes centre stage as its Q3 financials reveal a commendable 20% growth in advances and a 13% surge in deposits. The bank's strategic approach is evident in the dynamic balance between retail and wholesale advances.

Advances Surge:

RBL Bank reports a substantial 20% YoY growth in advances for the quarter, reaching Rs 81,870 crore compared to Rs 68,363 crore in the same period last year. This growth is a testament to the bank's effective lending strategies.

Deposit Momentum:

The bank's deposits witnessed a noteworthy 13% YoY increase, totaling Rs 92,743 crore for the quarter. This positive trajectory highlights confidence in RBL Bank's stability and attractiveness as a financial institution.

Retail Advances Lead:

RBL Bank's retail advances outshine, registering an impressive 32% YoY growth. In contrast, wholesale advances also demonstrate resilience, growing by 6% YoY. The balanced mix of retail and wholesale advances stands at approximately 58:42.

Strategic Focus on Retail Deposits:

Emphasising a strategic shift, RBL Bank targets the growth of granular retail deposits. As of December 31, 2023, retail deposits, as per LCR definition, constitute around 44.4% of the overall deposit mix, compared to 43.3% in the previous year.

Key Metrics Overview:

RBL Bank's Retail LCR deposits witness a substantial 16% YoY increase, reaching Rs 41,209 crore. The CASA (Current Account Savings Account) grows by 5% to Rs 31,333 crore, contributing to a CASA ratio of 33.8%. Despite a slight dip, the average liquidity coverage ratio for the quarter stands strong at 132%.

Recent Developments:

In recent news, RBL Bank made headlines for the sale of its credit card portfolio at a significant discount to Kotak Mahindra Bank. Additionally, alongside Bajaj Finance, the bank secured a one-year extension for co-branded cards, albeit shorter than initially sought.

RBL Bank's robust Q3 performance:

Strong performance underscores its resilience and adaptability in the dynamic banking landscape. The strategic focus on retail advances and deposits positions the bank for sustained growth. Despite recent developments, RBL Bank continues to demonstrate its financial strength and strategic vision.