RBL Bank Q3 Result: Net Profit Drops 86% To Rs 33 Cr; Asset Quality Improves

At its meeting on Saturday, January 18, 2025, RBL Bank Limited revealed its financial results for the quarter and nine months that concluded on December 31, 2024. The bank's standalone net profit for the December quarter was Rs 33 crore, an 86% drop from the Rs 233 crore it posted for the same period last year. In the reporting quarter, RBL Bank's net interest income (NII) increased 3% YoY to Rs 1,585 crore, while its net interest margins (NIMs) were 4.90%. Other income increased 38% year-on-year to Rs 1,073 crore in Q3 of FY25 and 29% year-over-year to Rs 2,806 crore in FY25.

While CASA increased 12% year on year to Rs 35,022 crore, the bank's total deposits climbed 15% to Rs 106,753 crore. 32.8% represents the CASA ratio during Q3FY25. RBL Bank said that its retail advances book increased 19% year on year to Rs 55,199 crore, while its net advances book climbed 13% YoY to Rs 90,412 crore. On a year-on-year basis, the bank's gross non-performing asset (NPA) ratio surged by 20 basis points to 2.92% from 3.12%, while its net non-performing asset (NPA) ratio improved by 26 basis points to 0.53% from 0.80%.

Mr. R Subramaniakumar, MD & CEO, RBL Bank remarked, "We remain cautious about the short-term challenges emanating from macro-economic environment affecting certain unsecured lending segments. We continue to demonstrate strong growth in chosen areas of secured retail & commercial banking on asset side and granular deposits on liability side. Our core business remains robust and disciplined focus on growth with profitability and customer-centric approach continues to drive meaningful progress. Overall, we are happy to deliver yet another quarter of robust operating performance and growth in business".

In Q3 FY25, the bank's other income climbed 38% YOY to Rs 1,073 crore; in 9M FY25, it jumped 29% YoY to Rs 2,806 crore; in Q3 FY25, operating expenses climbed 7% YoY to Rs 1,662 crore; in 9M FY25, they boosted 11% to Rs 4,941 crore. According to RBL Bank, its net total income expanded 14% year on year to Rs 2,658 crore in Q3 FY25; it increased 17% year on year to Rs 7,706 crore in 9M FY25, while its operating profit improved 30% YoY to Rs 997 crore in Q3 FY25; it increased 29% YoY to Rs 2,766 crore in 9M FY25.

As of December 31, 2024, RBL Bank had 2,011 touchpoints in total, of which 1,453 were business correspondent branches and 558 were bank branches. 297 BC branches are banking establishments out of 1,453 total. A wholly owned subsidiary of the Bank, RBL Finserve Limited, is responsible for 1,145 business correspondent branches.