RBL Bank Q1 FY26: Net Profit Soars 192%, Driven by Strong Secured Retail Growth

New Delhi, India – July 19, 2025 – RBL Bank Limited today announced its unaudited financial results for the first quarter ended June 30, 2025, revealing a significant surge in net profit and a strategic shift towards secured retail and commercial banking. The bank’s Board of Directors approved the results at a meeting held earlier today.

Key Financial Highlights (Q1 FY26 at a Glance):

• Net Profit: RBL Bank reported a robust net profit of Rs 200 crore, marking an impressive 192% growth quarter-on-quarter.

• Net Total Income: The bank’s Net Total Income saw a 2% year-on-year increase, reaching Rs 2,550 crore.

• Net Advances: Net Advances grew by 9% year-on-year to Rs 94,431 crore, underscoring steady credit expansion.

• Total Deposits: Total Deposits increased by 11% year-on-year to Rs 112,734 crore, with a significant focus on granular deposits.

• CASA Growth: CASA (Current Account Savings Account) deposits grew by 11% year-on-year to Rs 36,614 crore, bringing the CASA ratio to 32.5%. This indicates a healthy base of low-cost funds.

• Asset Quality Improvement: The Net Non-Performing Asset (NNPA) ratio improved to 0.45%, down from 0.74% as of June 30, 2024. The Gross NPA (GNPA) stood at 2.78%.

• Provision Coverage: The Provision Coverage Ratio, including technical write-offs, was strong at 94.2%.

Despite a 13% year-on-year de-growth in Net Interest Income (NII) to Rs 1,481 crore, with Net Interest Margin (NIM) at 4.50%, the bank’s "Other Income" demonstrated exceptional growth, rising by 33% year-on-year to Rs 1,069 crore. Operating Expenses increased by 12% year-on-year to Rs 1,847 crore, resulting in a Cost to Income ratio of 72.4%. Consequently, operating profit de-grew by 18% year-on-year to Rs 703 crore, mainly attributed to lower unsecured advances and recent repo rate cuts.

Strategic Business Focus and Deposit Granularity:

RBL Bank’s growth in advances was particularly driven by a strategic emphasis on secured retail assets and commercial banking. Secured Retail advances witnessed a strong 23% year-on-year growth. The overall Retail Advances book expanded by 5% year-on-year to Rs 56,625 crore, while unsecured retail saw a 10% de-growth, reflecting a prudent approach to lending. The Retail to Wholesale advances mix stood at a balanced 60:40. Commercial Banking recorded impressive growth of 32% year-on-year.

A key highlight in the deposit landscape was the robust growth in granular deposits (deposits less than Rs 3 crore), which increased by 16% year-on-year and 5% quarter-on-quarter to Rs 57,934 crore. These deposits now constitute 51.4% of the total deposits, showcasing the bank's success in deepening its retail deposit base.

Capital Adequacy and Liquidity:

RBL Bank remains well-capitalized to support its medium-term growth ambitions. Total capital adequacy improved marginally by 3 basis points (bps) year-on-year to 15.59% (from 15.56% as of June 30, 2024). The Common Equity Tier 1 (CET 1) ratio also strengthened by 20 bps year-on-year to 14.05% (from 13.85% as of June 30, 2024). The average Liquidity Coverage Ratio (LCR) for Q1 FY26 stood at a healthy 152%, ensuring ample liquidity.

Leadership's Perspective:

Commenting on the quarter’s performance, Mr. R. Subramaniakumar, MD & CEO, RBL Bank, stated, “We have navigated a challenging environment with resilience and discipline, delivering strong momentum in secured retail and commercial banking while deepening our granular deposit base. During Q1 FY26, slippages in the JLG portfolio have moderated, with SMA levels reverting to Q1 FY25 level. The core engine remains robust—anchored in disciplined execution, profitability-driven growth, and a sharp customer focus. We are pleased to report steady performance this quarter and continued progress on our key priorities.”

Expanding Reach:

As of June 30, 2025, RBL Bank boasts a significant distribution network with 2,036 total touchpoints, comprising 562 bank branches and 1,474 business correspondent (BC) branches. Of the BC branches, 297 are banking outlets. RBL Finserve Limited, a wholly-owned subsidiary, accounts for 1,167 business correspondent branches, further extending the bank’s reach.

These results underscore RBL Bank's strategic focus on sustainable growth, improved asset quality, and a robust financial foundation, positioning it well for future opportunities in the competitive Indian banking landscape.