RBL Bank Share Price Jumps After Q4 Asset Quality Improves

RBL Bank Ltd.'s share price surged over 6% after the company posted improved asset quality in its fourth quarter earnings, despite an 80% drop in profit that still met analysts' estimates.

The private lender's asset quality showed improvement, with the gross non-performing assets ratio falling to 2.6% at the end of the March quarter, compared to 2.92% a quarter ago. Similarly, the net NPA also decreased to 0.29% from 0.53% in the December quarter.

In Q4 FY25, RBL Bank's share price rose by 4.73% to Rs 196.99.

The net profit for the quarter was down 80.5% to Rs 68.7 crore, compared to Rs 352 crore in the same period last year, but it still exceeded Bloomberg's estimate of Rs 47.5 crore. Net interest income fell by 2% to Rs 1,563 crore from Rs 1,600 crore. The net interest margin stood at 4.89%, down 1 basis point quarter-on-quarter.

The rise in provisions and a slight fall in net interest income weighed on RBL Bank's net profit for the quarter ended March. Post the earnings the board recommended a dividend of Rs 1 per equity share.

Shares of RBL Bank rose as much as 6.27% to Rs 199.88 apiece. It pared gains to trade 5.86% higher at Rs 199.11 apiece, as of 09:48 a.m. This compares to a 0.67% advance in the NSE Nifty 50.

The stock has fallen 24.26% in the last 12 months. Total traded volume so far in the day stood at 4.7 times its 30-day average. The relative strength index was at 66.

Out of 22 analysts tracking the company, 12 maintain a 'buy' rating, two recommend a 'hold' and seven suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 4.8%.