Can we trust RBL Bank?
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When it comes to trusting RBL Bank, there are several positive indicators that suggest it’s a reliable option. Here’s a quick breakdown:
Strong Financial Performance: RBL Bank has shown impressive growth recently. For the fourth quarter of 2023-24, the bank reported a 30% increase in net profit year-over-year, amounting to ₹353 crore. Deposits also rose by 22%, reaching ₹103,494 crore . This growth in profitability and deposits can be a good sign of the bank’s financial health.
Robust Loan Growth: The bank’s advances grew by 20%, indicating a strong demand for loans. The retail segment specifically performed well, with a 30% growth in retail advances. This shows that RBL Bank is effectively catering to its customers’ needs.
Plans for Expansion: RBL Bank recently announced plans to raise ₹6,500 crore through a mix of share placement and debt issues. This indicates a strategic move to strengthen its capital base and support future growth, reflecting a proactive management approach.
High Provision Coverage Ratio: The bank reported a provision coverage ratio of 89.8%, which means it is well-prepared for potential loan defaults. A high ratio indicates strong risk management practices.
Regulatory Compliance: Although there were challenges in the past, including increased scrutiny by regulators, RBL Bank has made significant efforts to enhance its governance and compliance practices. The appointment of experienced board members also adds to its credibility.