RBL Bank Q3 FY25 Earnings: Profit Falls 86% to ₹32.6 Crore, Deposits Grow 15% to ₹1.07 Lakh Crore

RBL Bank released its financial results for the October-December quarter of FY25 on January 18, reporting an 86% drop in net profit to ₹32.6 crore, compared to ₹233.1 crore in the same quarter last year. The steep decline was primarily due to higher provisions during the period.

Net Interest Income (NII) Sees Modest Growth

The bank’s net interest income (NII) grew by 3% year-on-year (YoY) to ₹1,585 crore in Q3FY25, compared to ₹1,546 crore in the same period last year. For the 9 months ending December 2024, NII rose 10% YoY to ₹4,900 crore, while the net interest margin (NIM) for the quarter stood at 4.90%.

Provisions and Slippages Increase Significantly

Provisions nearly doubled to ₹1,189 crore in Q3FY25 from ₹458 crore in Q3FY24. Slippages in the microfinance (MFI) book rose sharply to ₹535 crore, compared to the usual range of ₹125-150 crore, due to borrower over-leverage and historical challenges.

Asset Quality Shows Mixed Trends

• Gross NPA Ratio rose slightly to 2.92% from 2.88% in the previous quarter but improved from 3.12% YoY.
• Net NPA Ratio improved to 0.53% from 0.79% in the previous quarter and 0.80% YoY.
• Gross NPAs in absolute terms increased to ₹2,701 crore, while net NPAs fell to ₹481.64 crore from ₹697.51 crore in the previous quarter.

Strong Growth in Deposits and Advances

The bank recorded a 15% YoY growth in total deposits, reaching ₹1.07 lakh crore, with CASA deposits rising 12% to ₹35,022 crore. Granular deposits (below ₹3 crore) grew 20% YoY to ₹53,719 crore, forming over 50% of total deposits.

Net advances grew 13% YoY to ₹90,412 crore, driven by a 19% rise in retail advances to ₹55,199 crore.

• Housing loans: Up 33% YoY
• Rural vehicle finance: Up 30% YoY
• Commercial banking advances: Up 21% YoY

Other Highlights

• Other income surged 38% YoY to ₹1,073 crore, with core fee income growing 19% to ₹871 crore.
• The bank earned a net gain of ₹144.15 crore from selling a 10% stake in DAM Capital.
• Capital adequacy ratio stood at 15.4%.
• The credit card segment, where the bank has significant exposure, reported net slippages of ₹533 crore.

RBL Bank share price is trading at ₹152.95, down by ₹2.17 or 1.40% as of 9:47 AM IST on January 20. The stock opened at ₹146.10, reached a high of ₹154.15, and a low of ₹146.10.

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