Shares of RBL Bank fell over 6% in early trade today, reacting to its disappointing Q3 FY25 financial results. The bank reported an 86% year-on-year decline in net profit to ₹32.63 crore, while sequentially, the profit fell by 85%.
As of 9:17 am the shares were trading 5.81% lower at Rs 146.10 on NSE
The bank’s gross non-performing asset (NPA) ratio increased slightly to 2.92% as of December 31, 2024, compared to 2.88% in the previous quarter. However, the net NPA ratio improved to 0.53%, down from 0.79% in the previous quarter and 0.80% a year ago. Despite this improvement, the rise in absolute gross NPA to ₹2,701 crore raised concerns among investors.
RBL Bank made additional provisions of ₹414 crore on its Gross NPA from the Joint Liability Group (JLG) portfolio, bringing the total NPA provision for this portfolio to 85%. The provision coverage ratio, including technical write-offs, stood at 93.46%.
Net Interest Income (NII) grew 3% year-on-year to ₹1,585 crore in Q3 FY25, with a Net Interest Margin (NIM) of 4.90%. Other income surged 38% year-on-year to ₹1,073 crore, driven by a 19% rise in core fee income. Total deposits grew 15% year-on-year to ₹1.07 lakh crore, while net advances increased 13% to ₹90,412 crore, supported by strong growth in retail advances.
Despite these operational metrics, the weak net profit and rising gross NPAs weighed on market sentiment, leading to a sharp fall in the stock price.
