RBL Bank Shares Plummet Amidst Profit Decline

RBL Bank's shares dropped over 14% after announcing a 24% decline in profit for the September quarter, attributed to challenges in asset quality from its credit card and microlending portfolios. The company faced a significant market valuation erosion, with new slippages mainly from the credit card sector.

RBL Bank's shares plummeted over 14% on Monday following a dismal financial report for the September quarter, revealing a 24% decline in net profit to Rs 223 crore. The dip is largely due to issues in the bank's credit card and microlending books.

On the BSE, the bank's stock fell 14.21% to Rs 176.25, even dropping to a 52-week low of Rs 175.10 during trading hours. At the NSE, shares tumbled 14.18% to Rs 176.14, causing the market valuation to erode by Rs 1,774.43 crore.

RBL Bank CEO R Subramaniakumar indicated that challenges from its microfinance operations are industry-related, while internal factors affect the credit card segment. The bank expects credit card collection issues, currently transitioning in-house, to stabilize by the third quarter's end.

(With inputs from agencies.)