RBL Bank Reports 170% Rise in Net Profit for September Quarter, Driven by Higher Interest Income and Improved Asset Quality

RBL Bank reported a 170% year-on-year increase in net profit to ₹482 crore for the September quarter, with net interest income rising 37% to ₹2,131 crore. Operating profit rose 92%, net advances grew 42%, and asset quality improved with GNPA declining to 1.02%. The bank's capital adequacy ratio stood at 30.1%, and management expressed a constructive view on the banking sector outlook.

RBL Bank posted a net profit of ₹482 crore for the quarter ending September, a figure 170% above the same period a year earlier, with stronger net interest income and a healthier loan book credited for the improvement. A 37% climb in net interest income brought the figure to ₹2,131 crore, with the net interest margin settling at 4.61%. Earnings before interest and taxes reached ₹1,396 crore, nearly doubling from the prior period. Total outgoings climbed 3% against the same period a year earlier and 7% from the preceding quarter, landing at ₹1,812 crore. Loan balances at the bank expanded by 42 per cent against the prior year, reaching ₹1.42 lakh crore, while the deposit base climbed 34 per cent to settle at ₹1.56 lakh crore. Deposits held in current and savings accounts together represented 27.2% of the bank's total funding mix. Loan book health strengthened over the period, with the gross non-performing asset ratio retreating 131 basis points from the prior year's figure to settle at 1.02%. The ratio of net non-performing assets edged down to 0.29%, a reduction of 28 basis points from the prior reading. As of 30 September, the bank's capital adequacy ratio had eased to 30.1%, pulling back from the 33.3% level recorded three months earlier. A deadline of 31 August marked the close of RBL Bank's participation in the Reserve Bank of India's concessional FCNR(B) swap window, through which the lender gathered funds totalling ₹32,472 crore, equivalent to roughly $3.4 billion. On a post-earnings call, R. Subramaniakumar — who holds the roles of Managing Director and Chief Executive Officer — outlined plans to channel the bank's remaining liquidity entirely into wholesale banking, a move he described as building capacity to take on larger credit exposures over the medium term, while also noting that domestic demand, activity in the services sector, momentum in manufacturing, and ongoing investment flows together point to a broadly favourable operating environment within India that carries room for growth. Asset quality across the entire banking network remained on solid footing, Subramaniakumar noted, adding that the institution held a favourable view of where the sector was headed.

RBL Bank Reports 170% Rise in Net Profit for September Quarter, Driven by Higher Interest Income and Improved Asset Quality

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RBL Bank Reports 170% Rise in Net Profit for September Quarter, Driven by Higher Interest Income and Improved Asset Quality

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