RBL Bank Q3 Results: Profit Rises Sharply, Asset Quality Improves

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Summary is AI-generated, newsroom-reviewed
  • RBL Bank's net profit rose sharply to Rs 214 crore in December quarter from Rs 32.6 crore
  • Net interest income increased 4.6% year-on-year to Rs 1,657 crore in Q3 FY25
  • Gross NPA declined to 1.88% and net NPA eased to 0.55% sequentially in Q3
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RBL Bank Ltd. posted a sharp rise in profit for the December quarter, with net profit jumping to Rs 214 crore from Rs 32.6 crore in the corresponding period last year.

Net interest income increased 4.6% year-on-year to Rs 1,657 crore, compared with Rs 1,585 crore a year ago.

Asset quality improved on a sequential basis. Gross non-performing assets declined to 1.88% from 2.32% in the September quarter, while net NPAs eased to 0.55% from 0.57% sequentially. Provisions, however, rose 28% year-on-year to Rs 639 crore, compared with Rs 500 crore in the year-ago period.

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RBL Bank Q3 Highlights (YoY)

  • Profit at Rs 214 crore versus Rs 32.6 crore
  • NII up 4.6% at Rs 1,657 crore versus Rs 1,585 crore
  • Provisions up 28% at Rs 639 crore versus Rs 500 crore
  • Net NPA at 0.55% versus 0.57% (QoQ)
  • Gross NPA at 1.88% versus 2.32% (QoQ)

According to the bank's quarterly business update, total deposits stood at Rs 1.19 lakh crore as of December 31, 2025, up 12% year-on-year from Rs 1.06 lakh crore and 3% sequentially from Rs 1.16 lakh crore.

Gross advances grew 13% year-on-year to Rs 1.04 lakh crore, compared with Rs 92,631 crore a year ago, and were 2% higher sequentially from Rs 1.02 lakh crore.

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Other income, excluding the one-off gain from the sale of a strategic equity investment in Q3 FY25, rose 13% both year-on-year and quarter-on-quarter to Rs 1,050 crore. Core fee income remained robust, increasing 10% YoY and 3% QoQ to Rs 959 crore.

Commenting on the performance, R Subramaniakumar, Managing Director and CEO of RBL Bank, said the December quarter marked another period of stable and consistent operational performance, with secured retail advances and commercial banking driving asset growth, while granular deposits supported the liability side. He added that collection efficiency in the bank's JLG business improved materially during the quarter, with disbursal run rates nearing normalised levels.

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Subramaniakumar also said the bank's core operating engine remains robust, anchored in disciplined execution, a profitable balance sheet and sharper cross-selling to its existing customer base. During the quarter, RBL Bank received shareholder approval for capital infusion by Emirates NBD PJSC and for the amalgamation of its Indian branches with RBL Bank, and is now awaiting regulatory approvals.

RBL Bank shares closed 4% higher at Rs 324.50 on Friday, ahead of the results announcement.

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