RBL Bank’s Operating Profit De-grew 3% To Rs861 Cr

Net Advances grew 10% YoY to Rs92,618 crore

R Subramaniakumar, MD & CEO, RBL Bank

FinTech BizNews Service

Mumbai, April 25, 2025: The Board of Directors of RBL Bank Limited approved the audited financial results for the quarter and financial Year ended 31st March 2025 at its meeting held on Friday, 25th April 2025.

Q4 FY25 Results at a Glance

·         NII de-grew 2% YoY Rs1,563 crore; NIM at 4.89%

·         Other Income grew 14% YoY to Rs1,000 crore; Core Fee grew 17% YoY to Rs968 crore

·         Operating Expenses grew 7% YoY to Rs1,702 crore; Cost to Income ratio was 66.4%

·         Operating profit de-grew 3% YoY to Rs861 crore

·         Bank on prudent basis made additional provision on Gross NPAs of Joint Liability Group (JLG) portfolio taking total NPA provision on this portfolio to 100%; Net NPA in JLG portfolio is Nil as at 31st March 2025

·         After above additional provision, Net Profit was Rs69 crore

·         Net Advances grew 10% YoY to Rs92,618 crore

·         Retail Advances grew by 13% YoY to Rs55,703 crore; Retail: Wholesale mix was 60:40; Secured Retail advances grew 43% YoY

·         Total Deposits grew 7% YoY to Rs110,944 crore; CASA grew by 4% YoY to Rs37,886 crore, CASA Ratio at 34.1%

·         Granular Deposits i.e. deposits less than Rs3 crore grew faster at 16% YoY and 3% QoQ to Rs55,213 crore; at 49.8% of total deposits

·         Total capital adequacy was up 17bps QoQ to 15.54% vs 15.37% as of 31st Dec 2024; CET 1 improved 38bps QoQ to 14.06% vs 13.68% as of 31st Dec 2024

·         Average LCR for Q4 FY25 was 133%

·         GNPA down 32bps QoQ to 2.60%; NNPA down 24 bps QoQ to 0.29%

·         Provision Coverage Ratio including Technical Write off was 96.45%

FY25 Results at a Glance

·         Operating profit grew 20% YoY to Rs3,627 crore

·         NII grew 7% YoY Rs6,463 crore; NIM at 5.12%

·         Other Income grew 25% YoY to Rs3,806 crore

·         Core Fee grew 48% YoY to Rs3,429 crore

·         Operating Expenses grew 10% YoY to Rs6,642 crore; Cost to Income ratio improved YoY to 64.7% vs 66.6% for FY24

·         Net Profit at Rs695 crore; Proposed dividend of Rs. 1 per share

·         GNPA down 5bps YoY to 2.60%; NNPA down 45bps to 0.29%; PCR improved to 89.02% vs 72.73% as of 31st March 2024.

In reflecting on this quarter’s performance, Mr. R Subramaniakumar, MD & CEO, RBL Bank remarked, “We have navigated a complex environment with resilience and focus, delivering strong momentum in secured retail and commercial banking, while deepening our base of granular, sticky deposits. With proactive prudent provisioning on the JLG loan portfolio, Bank is entering FY26 with a clean slate for the JLG business. Our secured retail and wholesale portfolios have now seen eight consecutive quarters of near-zero credit costs. The core engine remains strong—driven by disciplined execution, profitability-led growth, and a sharp customer focus. We’re pleased to close the year with steady performance and continued progress on our key priorities”.

Results Summary for Q4 FY25 and Full Year FY25

Steady Operating Performance:

o    Operating profit for Q4 FY25 at Rs861 crore; For FY25 it grew 20% YoY to Rs3,627 crore

o    Net Interest Income (NII) for Q4 FY25 was Rs1,563 crore, NIM was 4.89%; For FY25 NII grew by 7% YoY to Rs6,463 crore, NIM was 5.12%

o    Other Income for Q4 FY25 was up 14% YoY to Rs1,000 crore; For FY25 it grew 25% YoY to

Rs3,806 crore

o    Core Fee Income for Q4 FY25 was up 17% YoY to Rs968 crore; For FY25 it grew 48% YoY to

Rs3,429 crore

o    Operating Expenses for Q4 FY25 was up 7% YoY to Rs1,702 crore; For FY25 it grew 10% to

Rs6,642 crore

o    Cost to Income for Q4 FY25 at 66.4%; For FY25 it improved 190 bps YoY to 64.7%

o    Net Total Income for Q4 FY25 grew 4% YoY to Rs2,563 crore; For FY25 it grew 13% YoY to

Rs10,269 crore

o    Net Profit for Q4 FY25 was Rs69 crore; For FY25 it was Rs695 crore

 Steady Deposits Growth; with increased focus on Granular Retail Deposits:

o    Total Deposits grew 7% YoY to Rs110,944 crore

o    CASA grew 4% YoY to Rs37,886 crore. CASA ratio at 34.1%

o    Granular Deposits i.e. deposits less than Rs3 crore grew 16% YoY & 3% QoQ to Rs55,213 crore; at 49.8% of total deposits

·         Healthy Advances Growth; with focus on secured retail assets & commercial banking (mid-corporates and SME):

o    Net Advances book grew 10% YoY to Rs92,618 crore

o    Retail Advances book grew 13% YoY to Rs55,703 crore

o    Retail: Wholesale advances mix at 60:40

o    Secured Retail Advances (excluding Credit Cards, Personal Loans & JLG Loans) grew 43% YoY

o    Commercial Banking grew 29% YoY

o    Total business of the bank crossed Rs 2 lakh crore milestone with Rs 2,03,562 crore and it grew by 9% YoY.

·         Well capitalized for medium term growth with healthy liquidity:

o    Total capital adequacy was 15.54% vs 15.37% as of 31st Dec 2024; Common Equity Tier 1 (CET 1) ratio improved to 14.06% vs 13.68% as of 31st Dec 24

o    Average Liquidity Coverage Ratio for Q4 FY25 it was 133%

·    Asset Quality Trend:

o    Gross NPA ratio as at 31st March 2025 at 2.60% vs 2.92% as at 31st Dec 2024.

o    Net NPA ratio as at 31st March 2025 improved to 0.29% vs. 0.53% as at 31st Dec 2024, improving by 24 bps in a quarter

o    Bank on prudent basis made additional provision on Gross NPAs of Joint Liability Group (JLG) portfolio taking total NPA provision on this portfolio to 100%

o    Overall Provision Coverage Ratio including technical write offs was 96.45%

o    The total provisions of the Bank including specific, general and contingent provision at 120% of GNPA

·         Expanding Distribution Presence

o    As of 31st March 2025, the Bank has 2,033 total touchpoints of which 561 are bank branches and 1,472 business correspondent branches. Of 1,472 BC branches, 296 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 1,165 business correspondent branches.

Key financials:

Key ratios: