RBL Bank Posts 81% Profit Decline in Q4 Result

28 Apr 2025 , 12:53 PM

RBL Bank saw an 81% YoY decline in the fourth quarter of FY25 net profit with the bank earning a profit of ₹69 crore compared to ₹362 crore during Q4FY24. The steep decline was mainly attributed to a fall in net interest margin (NIM) and higher bad loan provisions.

The net profit for the whole financial year FY25 in the bank fell by 40% to ₹695 crore from ₹1,168 crore in FY24. In Q4FY25, net interest income (NII) came down 2% YoY at ₹1,563 crore, compared to ₹1,600 crore during the same period last year.

The net interest margin (NIM) declined to 4.89% in Q4FY25 from 5.45% in Q4FY24, hence leading to the fall in profit. Conversely, non-interest income (inclusive of fee, commission, and treasury income) grew 14% YoY at ₹1,000 crore in Q4FY25 from ₹875 crore in Q4FY24.

Bank CAR stood at 17.38%, CET1 at 12.5% as of March 2025, evidencing healthy capital health. Advances grew by 10% YoY to ₹92,618 crore as of March 2025. Deposits were at ₹1.10 trillion up by 7% YoY. Provision and buffers of the quarter rose substantially to ₹785.14 crore in Q4FY25 from ₹413.79 crore in Q4FY24.

The bank’s asset quality improved with the gross NPA ratio falling to 2.6% in Q4FY25 from 2.65% in the same quarter last year. The net NPA ratio also fell and was at 0.29% in Q4FY25, from 0.74% in Q4FY24. Provision cover ratio (including write-offs) was at 96.4% as of March 2025, against 89.8% during the same period last year, reflecting enhanced bad loan cover.