- RBL Bank's Q1 FY27 net profit rose 26.6% year-on-year to Rs 254 crore
- Net interest income increased 12% to Rs 1,654 crore from Rs 1,481 crore
- Operating profit surged 31.3% to Rs 923 crore from Rs 703 crore year-on-year
RBL Bank Ltd.'s net profit for the first quarter of fiscal year 2027 rose 26.6% year-on-year, according to an exchange filing on Friday.
The bank posted a bottom-line of Rs 254 crore, compared to Rs 200 crore in the year ago period. Net interest income grew 12% to Rs 1,654 crore from Rs 1,481 crore, and operating profit jumped 31.3% to Rs 923 crore from Rs 703 crore in the corresponding quarter of the last fiscal.
Provisions rose year-on-year to Rs 599 crore from Rs 442 crore, but fell sequentially from Rs 678 crore.
Gross Non-performing assets softened to 1.30% from 1.45% in the preceding quarter and while net NPA stood at 0.37%, down from 0.39% sequentially.
Additionally, the board of directors has approved raising up to Rs 10,000 crore through debt and increasing borrowing limits to up to Rs 40,000 crore.
The Bank has also proposed appointing Emirates NBD officials on board post acquisiton including Suryanarayan Subramanian as independent director, and Shayne Keith Nelson, Patrick John Sullivan as non-independent directors among others.
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During the post earnings conference call, RBL Bank's CEO R. Subramaniakumar forecasted NIM to improve 4.80%-4.90% by FY27 end.
He further said that the bank is working to mobilise as many FCNR(B) deposits as possible and has already raised $150 million through such deposits. The CEO added that it will focus on acquiring ENBD and NRI customers to further grow its FCNR(B) deposit base.
Management said the ENBD transaction has significantly expanded the bank's opportunity to grow across geographies. It also plans to offer a broader range of products while replacing high-cost borrowings with lower-cost funding. As part of this strategy, the bank has already retired Rs 10,500 crore of high-cost borrowings.
Subramaniakumar told NDTV Profit that the rise in credit card slippages during the quarter was primarily due to a transition effect. He added that the bank will continue to pursue responsible credit growth, targeting loan growth of 20% to 25%.
The CEO also said RBL Bank has disbursed Rs 200 crore of loans under the ECLGS 5.0 scheme.
RBL Bank Q1FY27 (YoY)
- Net profit up 26.6% to Rs 254 crore from Rs 200 crore
- Net interest income up 12% to Rs 1,654 crore from Rs 1,481 crore
- Operating profit up 31.3% to Rs 923 crore from Rs 703 crore
- Provisions at Rs 599 crore versus Rs 442 crore
RBL Bank Q1FY27 (QoQ)
- Gross NPA at 1.30% versus 1.45%
- Net NPA at 0.37% versus 0.39%
- Provisions at Rs 599 crore versus Rs 678 crore
- NIM down 28 basis points to 4.13% from 4.41%
RBL Bank Share Price
The bank's shares closed 1.46% higher at Rs 368.10 apiece on the NSE on Friday, compared to a 1.09% advance in the benchmark Nifty index.
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