RBL Bank net profit rises to Rs 214 crore, loans cross Rs 1 lakh crore

MUMBAI: RBL Bank reported a net profit of Rs 214 crore in Q3 FY26, up 555% from Rs 33 crore a year earlier when earnings were subdued to provisions. The net profit was 20% higher than Rs 179 crore in the previous quarter.

Profit in the December quarter would have been higher but for the one-off expenses of Rs 32 crore arising from revised wage definitions under the new labour codes that came into effect in Nov 2025.

Balance-sheet growth remained stable during the quarter, with total deposits rising 12% year-on-year and 3% sequentially to Rs 1,19,721 crore, while net advances grew 14% year-on-year and 3% quarter-on-quarter to Rs 1,03,086 crore. The credit-to-deposit ratio stood at about 86.1%.

Within deposits, the share of current and savings accounts was 30.9%, with CASA deposits increasing 6% year-on-year to Rs 36,972 crore, while granular deposits of less than Rs 3 crore accounted for 51.5% of total deposits.

Total income increased to Rs 2,707 crore, up 2% from a year earlier and 9% from the previous quarter. Net interest income rose 5% year-on-year and 7% sequentially to Rs 1,657 crore, while non-interest income stood at Rs 1,050 crore, marking a 13% quarter-on-quarter increase despite a marginal 2% decline from a high base last year that included one-off investment gains.

Core fee income remained a key contributor, rising 10% year-on-year to Rs 959 crore, driven by transaction volumes and retail segments such as credit cards and processing fees. Other income from treasury, foreign exchange and capital markets activities recovered sharply, increasing to Rs 91 crore from Rs 7 crore in the September quarter. Recoveries from written-off retail accounts contributed Rs 105 crore during the quarter.

Operating expenses rose 8% year-on-year to Rs 1,795 crore, with employee costs increasing 11% to Rs 502 crore, partly reflecting the impact of the labour code changes. The cost-to-income ratio for the quarter stood at 66.3%. Provisions declined 46% year-on-year to Rs 639 crore but were 28% higher than the previous quarter, largely due to higher provisions on advances of Rs 634 crore, keeping the provision coverage ratio at 71.09%.

Asset quality continued to improve, with the gross NPA ratio declining 104 basis points year-on-year to 1.88%. The net NPA ratio stood at 0.55%, lower than 0.57% in the previous quarter but marginally higher than 0.53% a year earlier. Credit cost for the quarter remained contained at 64 basis points. Net interest margin improved sequentially to 4.63% from 4.51% in the September quarter, indicating stabilising pricing despite a higher cost of funds.