RBL Bank Q4: Profit jumps 234%; asset quality strengthens, advances grow 23%

RBL Bank reported a strong March quarter performance on Saturday, April 25, with net profit surging 234% year-on-year to ₹230 crore from ₹68.7 crore, as operating income growth remained steady and asset quality improved.

Net interest income (NII) rose 6.9% YoY to ₹1,670.7 crore, while net interest margin (NIM) stood at 4.41%. Other income increased to ₹1,068 crore from ₹1,000 crore a year ago, supported by growth in fee income.

Operating profit grew 11% YoY to ₹955 crore, even as operating expenses rose 5% to ₹1,785 crore. The cost-to-income ratio improved to 65.1% from 66.3% in the previous quarter.

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Provisions for the quarter stood at ₹678 crore, compared with ₹639 crore in the previous quarter and ₹785 crore a year ago. The bank issued 3.3 lakh cards during the quarter.

On the balance sheet front, net advances grew 23% YoY to ₹1.14 lakh crore, led by strong traction in retail and wholesale segments. Retail advances rose 20% YoY to ₹67,119 crore, while wholesale advances grew 28% to ₹47,112 crore.

Total deposits increased 25% YoY to ₹1.39 lakh crore, with CASA deposits rising 23% to ₹46,723 crore, taking the CASA ratio to 33.6%.

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Asset quality improved during the quarter, with gross NPA declining to 1.45% from 1.88% in the previous quarter and net NPA easing to 0.39% from 0.55% sequentially. Provision coverage ratio stood strong at 94.9%, while credit cost for the quarter was 65 basis points.

The bank remained adequately capitalised, with a capital adequacy ratio at 14.25% and a CET-1 ratio at 12.77%, while the liquidity coverage ratio averaged 130% during the quarter.

Commenting on the performance, Managing Director and CEO R Subramaniakumar said, “We delivered growth that meaningfully outpaced normalised industry trends.”

On strategic developments, the bank said it has received approvals from the RBI and the Competition Commission of India for the proposed Emirates NBD investment, with SEBI and government approvals still awaited.

For FY26, net profit rose 18% YoY to ₹822 crore, while NII for the year declined 2% to ₹6,360 crore, and operating profit stood at ₹3,299 crore. The bank proposed a dividend of ₹1 per share.

Shares of the company ended nearly 3% higher at ₹321.65 on Friday, ahead of the March quarter earnings results. The stock has surged over 71% in the last one year.