RBL Bank surges 6 % post strong Q3
The newly-listed private sector lender, Ratnakar Bank Limited (RBL bank) was trading high early morning due to the strong quarterly results posted by the bank post-market hours on Friday, January 20, 2017.
The expected earnings were better due to the positive impact of demonetisation on the banks financials. The bank reported an increase in its profitability by a whopping 59 per cent supported by both interest and non-interest income.
RBL Bank also saw a strong demand for loans, however sectors like agriculture and Small and medium-sized enterprise (SMEs) were negatively impacted due to the demonetisation effect.
Net interest margin (NIM) that is, the difference between the interest expended and interest earned improved to 3.38 per cent in December 2016 compared to 3.24 per cent last year. The NIM improved as the cost of funds dropped to 6.9 per cent helped by cheaper money via demonetisation deposits.
On the asset front, net-performing asset remained stable at 0.52 per cent. The Current and savings account (CASA) deposits for the quarter increased by 23 per cent for quarter ending December 2016.
Meanwhile, shares of RBL Bank was trading at record highs of Rs 391 up 6.2 per cent on National Stock Exchange (NSE).