RBL Bank (RBLBANK) Q3 24/25 earnings summary

Executive summary

• Advances grew 13% year-over-year to ₹90,412 crore, led by 19% growth in retail and 5% in wholesale; secured retail advances surged 38%.

• Deposits increased 15% year-over-year to ₹1,06,753 crore, with granular deposits up 20% and CASA ratio at 32.8%.

• Net profit for the quarter was ₹33 crore, significantly down from last year due to high provisioning, especially in the JLG portfolio.

• Asset quality challenges persisted in unsecured segments, but aggressive provisioning and improved collection efficiency are expected to normalize slippages from Q1 FY26.

• Focus remains on strengthening balance sheet quality, risk controls, and profitable growth in wholesale and secured retail.

Financial highlights

• Net interest income rose 3% year-over-year to ₹1,585 crore, with NIM at 4.90%.

• Other income was ₹1,073 crore, up 38% year-over-year, aided by a one-time investment gain.

• PPOP reached ₹997 crore, up 30% year-over-year; excluding one-offs, PPOP was ₹853 crore, up 11%.

• Provisions and contingencies increased sharply to ₹118,890 lakh from ₹45,814 lakh year-over-year.

• Cost-to-income ratio improved to 62.5% from 67.1% year-over-year.

Outlook and guidance

• Margins expected to trend down in Q4 due to lower standard advances in JLG and cards, but should recover from Q1 FY26.

• Elevated slippages in JLG anticipated in Q4, but normalization expected from Q1 FY26.

• No immediate plans for capital raising; current CET1 of 13.7% is expected to support growth for at least 1.5 years.

• Focus on cleaning up unsecured portfolios to start FY26 with minimal net NPA.

• Adoption of revised RBI investment framework from April 1, 2024, impacts comparability with previous periods.