RBL Bank's Q3 Net Profit Plummets 86% to ₹33 Crore
Significant Drop in Net Profit
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 saw a significant 86% year-on-year drop to ₹33 crore, compared to ₹233 crore for the same period last year.
Net Interest Income and Margins
In the reporting quarter, RBL Bank's net interest income (NII) increased by 3% year-on-year to ₹1,585 crore, while its net interest margins (NIMs) were 4.90%. Other income saw a substantial 38% year-on-year increase to ₹1,073 crore in Q3 of FY25, and a 29% year-over-year increase to ₹2,806 crore in 9M FY25.
Deposit and CASA Growth
The bank's total deposits climbed 15% to ₹106,753 crore, and CASA deposits increased 12% year-on-year to ₹35,022 crore. The CASA ratio during Q3FY25 was 32.8%.
Advances and Asset Quality
RBL Bank's retail advances book increased 19% year-on-year to ₹55,199 crore, while its net advances book climbed 13% year-on-year to ₹90,412 crore. On a year-on-year basis, the bank's gross non-performing asset (NPA) ratio improved 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%.
Management Commentary
Mr. R Subramaniakumar, MD & CEO of RBL Bank, noted caution about short-term challenges from the macroeconomic environment affecting certain unsecured lending segments. He stated that the bank continues to demonstrate strong growth in secured retail & commercial banking, along with granular deposits. He also mentioned that the core business remains robust and the bank is focused on growth with profitability and a customer-centric approach.
Other Financial Highlights
In Q3 FY25, the bank's operating expenses climbed 7% YoY to ₹1,662 crore, and in 9M FY25, they increased 11% to ₹4,941 crore. RBL Bank's net total income expanded 14% year-on-year to ₹2,658 crore in Q3 FY25 and increased 17% year-on-year to ₹7,706 crore in 9M FY25. The operating profit improved 30% year-on-year to ₹997 crore in Q3 FY25 and increased 29% year-on-year to ₹2,766 crore in 9M FY25.
Branch Network
As of December 31, 2024, RBL Bank had 2,011 touchpoints, which include 1,453 business correspondent branches and 558 bank branches. A wholly owned subsidiary of the Bank, RBL Finserve Limited, operates 1,145 of the business correspondent branches.
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