RBL Bank reported its unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26), highlighting a sharp decline in profitability amid higher expenses and slower income growth.
The bank’s net profit stood at ₹200 crore in Q1 FY26, a 46% drop YoY from ₹372 crore in the year-ago quarter. Sequentially, however, net profit jumped 192% from ₹69 crore in Q4 FY25, aided by moderation in slippages and stable asset quality.
Net Interest Income (NII) — the bank’s core income — fell 13% YoY to ₹1,481 crore compared to ₹1,700 crore last year. Net Interest Margin (NIM) also contracted to 4.50% from 5.67% a year ago.
The total income grew modestly by 2% YoY to ₹2,550 crore, thanks to a strong 33% YoY growth in other income, which rose to ₹1,069 crore. Operating expenses rose 12% YoY to ₹1,847 crore, leading to an 18% YoY drop in operating profit to ₹703 crore.
On the deposits and advances front, RBL Bank reported healthy growth:
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Deposits grew 11% YoY to ₹1,12,734 crore.
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Advances increased 9% YoY to ₹94,431 crore, with secured retail advances surging 23% YoY.
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CASA deposits rose 11% YoY to ₹36,614 crore, with a CASA ratio at 32.5%.
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Granular deposits (below ₹3 crore) jumped 16% YoY to ₹57,934 crore, comprising over 51% of total deposits.
The asset quality remained stable, with Gross NPA at 2.78% (up from 2.69% YoY) and Net NPA improving to 0.45% from 0.74% last year. Provision coverage ratio, including technical write-offs, stood at a robust 94.2%.
CEO R Subramaniakumar said the bank “navigated a challenging environment with resilience and discipline,” highlighting strong momentum in secured retail and commercial banking segments while maintaining a healthy liquidity profile (LCR at 152%).
As of June 30, 2025, RBL Bank operated through 562 branches and 1,474 business correspondent branches, serving over 15.17 million customers across India.
For more details, the press release and investor presentation are available on the bank’s website.
