RBL Bank posted a sharp decline in profitability for the quarter ended March 31, 2025, with net profit tumbling 80% year-on-year to ₹69 crore compared to ₹353 crore in Q4 FY24. The drop was primarily due to additional provisioning undertaken by the bank on its Joint Liability Group (JLG) loan portfolio, where the bank took total NPA provision coverage to 100%.
Despite the hit to profits, the bank’s total income for the quarter stood at ₹2,563 crore, a growth of 4% from ₹2,463 crore in the same period last year. Net Interest Income (NII) for the quarter was ₹1,563 crore, down 2% YoY, while other income rose 14% to ₹1,000 crore.
Operating expenses increased 7% YoY to ₹1,702 crore, leading to a cost-to-income ratio of 66.4%. The operating profit for the quarter stood at ₹861 crore, reflecting a 3% decline over the previous year.
On the balance sheet front, net advances rose 10% YoY to ₹92,618 crore, while total deposits grew 7% YoY to ₹110,944 crore. The bank maintained a CASA ratio of 34.1%. Gross NPA ratio improved to 2.60% from 2.92% sequentially, and Net NPA dropped to 0.29%, down 24 basis points quarter-on-quarter.
The bank’s capital adequacy ratio stood at 15.54%, and its Liquidity Coverage Ratio (LCR) remained healthy at 133%.
