The Bank Delivers Q3 FY26 Profit on Strong Advances Growth and Improved Asset Quality
FinTech BizNews Service
Mumbai, 17 January 2026: The Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter ended 31st December 2025 at its meeting held on Saturday, 17th January 2026.
Q3 FY26 Results at a glance
Ø Net Profit at 214 crore; impacted by one off expenses of 32 crore (pre-tax) on account of revision in definition of wages under New Labour Codes effective November 21, 2025
Ø NII grew 5% YoY and 7% QoQ to 1,657 crore; NIM at 4.63%
Ø Other Income (excluding impact of one-off income on sale of strategic equity investment in Q3 FY25) grew 13% YoY as well as QoQ to 1,050 crore; Core Fee Income grew 10% YoY and 3% QoQ to 959 crore
Ø Operating Expenses grew 8% YoY and 2% QoQ to 1,795 crore; Cost to Income ratio was 66.3% in Q3 FY26 vs 70.7% last quarter
Ø Operating profit (excluding above one-off impact in other income of Q3 FY25) grew 7% YoY and 25% QoQ to 912 crore
Ø Net Advances grew 14% YoY and 3% QoQ to 1,03,086 crore; Retail: Wholesale mix was 59:41
Ø Secured Retail advances grew 24% YoY and 1% QoQ, as the Bank reduced IBPC outstanding from 4500 crore to 1500 crore; Unsecured Retail de-grew 5% YoY but grew 1% QoQ;
Ø Retail Advances grew by 10% YoY and 1% QoQ to 60,611 crore
Ø Wholesale advances grew by 21% YoY and 5% QoQ to Rs.42,475 crore; Commercial Banking grew faster at 30% YoY and 7% QoQ
Ø Total Deposits grew 12% YoY and 3% QoQ to 119,721 crore; CASA grew by 6% YoY and de-grew 1% QoQ to 36,972 crore, CASA Ratio at 30.9%
Ø Granular Deposits i.e. deposits less than 3 crore grew faster at 15% YoY and 4% QoQ to 61,632 crore; at 51.5% of total deposits
Ø Total capital adequacy was 14.94% as of 31st December 2025 vs 15.02% as of 30th September 2025; CET 1 is 13.45% as of 31st December 2025 vs 13.51% as of 30th September 2025
Ø Average LCR for Q3 FY26 was 125%
Ø GNPA down 45 bps QoQ to 1.88%; NNPA down 2 bps QoQ to 0.55%; Provision Coverage Ratio including Technical Write off was 93.2%
In reflecting on this quarter’s performance, Mr. R Subramaniakumar, MD & CEO, RBL Bank remarked,
“Q3 FY26 marks another quarter of stable and consistent operational performance for the Bank. We continued to deliver strong growth in our focus areas, with secured retail advances and commercial banking driving asset side expansion while granular deposits supported on liability side. The collection efficiency in our JLG business has materially improved and disbursal run-rate are now close to normalised levels. Our core operating engine remains robust — anchored in disciplined execution, profitable Balance Sheet, and a sharper cross sell to our existing customer base. During the quarter, the Bank received shareholder approval for capital infusion by Emirates NBD PJSC and for amalgamation of its Indian branches with RBL. The Bank is awaiting regulatory approvals for the same.”
Results Summary for Q3 FY26
· Operating Performance:
o Net Profit at 214 crore; impacted by one off expenses of
32 crore (pre-tax) on account of revision in definition of wages under New Labour Codes effective November 21, 2025
o Operating profit (excluding impact of one-off income on sale of strategic equity investment in Q3 FY25) grew 7% YoY and 25% QoQ to 912 crore
o Net Interest Income (NII) for Q3 FY26 grew 5% YoY and 7% QoQ to 1,657 crore, NIM was 4.63%
o Other Income (excluding above one-off impact in other income for Q3 FY25) grew 13% YoY as well as QoQ to 1,050 crore; Core Fee Income for Q3 FY26 grew 10% YoY and 3% QoQ to
959 crore
o Operating Expenses for Q3 FY26 grew 8% YoY and 2% QoQ to 1,795 crore
o Cost to Income for Q3 FY26 was 66.3% vs 70.7% last quarter
· Deposits Growth predicated on Granular Retail Deposits:
o Total Deposits grew 12% YoY and 3% QoQ to 119,721 crore
o CASA grew 6% YoY and de-grew 1% QoQ to 36,972 crore; CASA ratio at 30.9%
o Granular Deposits i.e. deposits less than 3 crore grew 15% YoY & 4% QoQ to
61,632 crore; at 51.5% of total deposits
o CASA + TD < Rs. 3 crores at 65% of Total Deposits
· Advances Growth with focus on secured retail assets & commercial banking:
o Net Advances grew 14% YoY and 3% QoQ to 103,086 crore; Retail: Wholesale advances mix at 59:41
o Secured Retail Advances grew 24% YoY and 1% QoQ to 34,407 crore, as the Bank reduced IBPC outstanding from
4500 crore to
1500 crore
o Retail Advances book grew 10% YoY and 1% QoQ to 60,611 crore
o Wholesale advances grew by 21% YoY and 5% QoQ to Rs.42,475 crore; Commercial Banking grew faster 30% YoY and 7% QoQ
· Well capitalized for medium term growth with healthy liquidity:
o Including 9M FY26 profits, total capital adequacy was at 14.94% as of 31st December 2025 vs 15.02% as of 30th September 2025; CET-1 was 13.45% as of 31st December 2025 vs 13.51% as of 30th September 2025
o Average Liquidity Coverage Ratio for Q3 FY26 was 125%
· Asset Quality Trend:
o Gross NPA ratio as at 31st December 2025 was 1.88% vs 2.32% as at 30th September 2025
o Net NPA ratio as at 31st December 2025 was 0.55% vs. 0.57% as at 30th September 2025
o Provision Coverage Ratio including technical write offs was 93.2%
· Expanding Distribution Presence
o As of 31st December 2025, the Bank has 1,921 total touchpoints of which 580 are bank branches and 1,341 business correspondent branches. Of 1,341 BC branches, 291 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 1,084 business correspondent branches.
Key financials:
Rs in crore | Q3 FY26 | Q3 FY25 | YoY | Q2 FY26 | QoQ | 9M FY26 | 9M FY25 |
Net Interest Income | 1,657 | 1,585 | 5% | 1,551 | 7% | 4,689 | 4,900 |
Other Income | 1,050 | 1,073 | -2% | 933 | 13% | 3,052 | 2,806 |
Net Total Income | 2,708 | 2,658 | 2% | 2,483 | 9% | 7,741 | 7,706 |
Operating Expenses | 1,795 | 1,662 | 8% | 1,755 | 2% | 5,397 | 4,941 |
Operating Profit | 912 | 997 | -8% | 728 | 25% | 2,344 | 2,766 |
Net Profit | 214 | 33 | 555% | 179 |
