RBL Bank Q4 Results: Profit Hits Rs 69 Cr, Asset Quality Shines; Rs 1 Dividend Proposed

At its meeting on Friday, April 25, 2025, the Board of Directors of RBL Bank Limited announced the audited financial results for the quarter and financial year that ended on March 31, 2025. Throughout Q4 of FY25, the bank's net profit was Rs 69 crore, while throughout the full year FY25, it was Rs 695 crore. According to RBL Bank, its Net Interest Income (NII) increased by 7% YoY to Rs 6,463 crore, NIM was 5.12% in the entire year FY25, whereas for Q4 of FY25, NII was Rs 1,563 crore, NIM was 4.89%.

RBL Bank reported an operating profit of Rs 861 crore for the fourth quarter of FY25, while for FY25 it grew 20% YoY to Rs 3,627 crore. The bank's other income increased 14% YoY to Rs 1,000 crore in Q4 of FY25, while it increased 25% YoY to Rs 3,806 crore for the whole year. In Q4 of FY25, the bank's core fee income increased 17% YoY to Rs 968 crore, while in FY25, it increased 48% YoY to Rs 3,429 crore. Operating expenses for the bank increased 7% YoY to Rs 1,702 crore in Q4 of FY25, while they increased 10% to Rs 6,642 crore in FY25.

For the fourth quarter of FY25, the bank's cost to income was 66.4%, but for the whole year, it increased 190 basis points YoY to 64.7%. According to RBL Bank, its net total income increased 13% YoY to Rs 10,269 crore in FY25, while it increased 4% YoY to Rs 2,563 crore in Q4 of FY25.

While CASA increased 4% YoY to Rs 37,886 crore and the CASA ratio to 34.1%, the bank's total deposits climbed 7% YoY to Rs 110,944 crore. The bank's retail advances book increased 13% YoY to Rs 55,703 crore, while its net advances book jumped 10% YoY to Rs 92,618 crore. With ~ 2,03,562 crore, RBL Bank's total business surpassed the Rs 2 lakh crore milestone and expanded by 9% YoY.

As of March 31, 2025, the bank's gross non-performing asset (NPA) ratio was 2.60% from 2.92% on December 31, 2024, while its net non-performing asset (NPA) ratio improved by 24 basis points in the quarter to 0.29% from 0.53% on December 31, 2024.

Mr. R Subramaniakumar, MD & CEO, RBL Bank remarked, "We have navigated a complex environment with resilience and focus, delivering strong momentum in secured retail and commercial banking, while deepening our base of granular, sticky deposits. With proactive prudent provisioning on the JLG loan portfolio, Bank is entering FY26 with a clean slate for the JLG business. Our secured retail and wholesale portfolios have now seen eight consecutive quarters of near-zero credit costs. The core engine remains strong-driven by disciplined execution, profitability-led growth, and a sharp customer focus. We're pleased to close the year with steady performance and continued progress on our key priorities".

The Board of Directors have proposed a dividend of Rs. 1 per share for FY25.

The bank has 2,033 touchpoints in total as of March 31, 2025, of which 1,472 are business correspondent branches and 561 are bank branches. 296 of the 1,472 BC branches are banking establishments. A wholly owned subsidiary of the bank, RBL Finserve Limited, operates 1,165 business correspondent branches.