RBL Bank Q3 Net Profit Declines 86% to ₹33 Cr; Asset Quality Improves
Q3 Financial Results
RBL Bank Limited announced its financial results for the quarter and nine months ending December 31, 2024, on Saturday, January 18, 2025. The bank's standalone net profit for the December quarter was ₹33 crore, an 86% drop from the ₹233 crore it posted for the same period last year. The bank’s net interest income (NII) increased 3% YoY to ₹1,585 crore, while its net interest margins (NIMs) were 4.90%.
Other Income and Deposits
Other income increased 38% year-on-year to ₹1,073 crore in Q3 of FY25 and 29% year-over-year to ₹2,806 crore in FY25. While CASA (Current Account Savings Account) increased 12% year-on-year to ₹35,022 crore, the bank's total deposits climbed 15% to ₹106,753 crore. The CASA ratio during Q3FY25 was 32.8%.
Advances and Asset Quality
RBL Bank stated that its retail advances book increased 19% year-on-year to ₹55,199 crore, while its net advances book climbed 13% YoY to ₹90,412 crore. The bank’s gross non-performing asset (NPA) ratio decreased by 20 basis points to 2.92% from 3.12% year-on-year, while its net non-performing asset (NPA) ratio improved by 26 basis points to 0.53% from 0.80%.
Management Commentary
Mr. R Subramaniakumar, MD & CEO of RBL Bank, remarked that while they remain cautious about short-term challenges from the macroeconomic environment, particularly affecting certain unsecured lending segments, the bank continues to show strong growth in secured retail and commercial banking on the asset side, and in granular deposits on the liability side. He highlighted that the core business remains robust and that a disciplined focus on growth with profitability and customer-centric approach continues to drive meaningful progress. Overall, he noted that they are happy to deliver another quarter of robust operating performance and growth.
Income and Operating Expenses
In Q3 FY25, the bank's other income climbed 38% YoY to ₹1,073 crore; and in 9M FY25, it jumped 29% YoY to ₹2,806 crore. Operating expenses climbed 7% YoY to ₹1,662 crore in Q3 FY25 and 11% to ₹4,941 crore in 9M FY25. RBL Bank’s net total income expanded 14% year-on-year to ₹2,658 crore in Q3 FY25, and it increased 17% year-on-year to ₹7,706 crore in 9M FY25. The operating profit improved 30% YoY to ₹997 crore in Q3 FY25 and 29% YoY to ₹2,766 crore in 9M FY25.
Branch Network
As of December 31, 2024, RBL Bank had 2,011 touchpoints, of which 1,453 were business correspondent branches and 558 were bank branches. A wholly owned subsidiary, RBL Finserve Limited, is responsible for 1,145 business correspondent branches.
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