- By Aditya Pratap Singh
- Mon, 21 Oct 2024 02:51 PM (IST)
- Source:JND
RBL Bank's share price fell by 14% on Monday morning, as its net profit fell by 24% to Rs 223 crore in the September quarter, due to asset quality concerns arising from credit cards and microlending books. The company's stock fell by 14%, touching a 52-week low of Rs 176.50 per share on both the BSE and NSE. RBL Bank announced its September quarter results on Saturday. The private sector lender reported a net profit of Rs 294 crore in the year-ago period and Rs 372 crore in the previous June quarter.
The stress on the microfinance books is due to industry-wide issues, but the same is true for credit cards, where the regulator has been flagging risks for the industry, said R Subramaniankumar.
A senior bank official said the lender expects the challenges on credit cards, from outsourcing debt collections upfront to partners in-house, to be resolved by the end of the third quarter, but the same microlending could linger for longer.
Fresh slippage almost doubled to Rs 1,026 crore in the quarter and about 70% of the addition came from the credit card book, with the rest from microfinance, an official explained.
Stock Market Today
Equity benchmark indices began trading on an upbeat note on Monday, aided by its purchase of blue-chip HDFC Bank, but later gave up all initial gains amid a sharp drop in Kotak Mahindra Bank and continuing foreign capital outflows.
The BSE Sensex rose 545.27 points to 81,770.02 in early trade. The NSE Nifty climbed 124.25 points to 24,978.30.
However, benchmark indices soon succumbed to gains and traded lower. The BSE benchmark gauge fell 136.52 points to 81,060.86, and the Nifty decreased 100.70 points to 24,753.35 in early trade.