Private sector entity RBL Bank saw a 46% on-year decline in net profits at Rs 200 crore in the June quarter due to high slippages from credit card and microfinance sectors, weaker interest income, and a rise in bad loans and expenses.
It had a net profit of Rs 372 crore from the same time last year.
Net interest income (NII), the difference between the interest a bank earns on assets and the interest it pays out on its liabilities, decreased 13% to Rs 1,481 crore. Its net interest margins (NIMs) reduced to 4.5% from 5.67% in Q1FY25 and 4.89% in Q4FY25.
“We think margins have bottomed out now. We may still see some moderation in Q2, but we see it going up from Q3 onwards,” RBL Bank MD & CEO R Subramaniakumar said, while commenting on interest margins. “The recent cut in deposit rates should start showing an impact in Q2 and Q3,” he said.
The bank recorded net slippages of Rs 918 crores in Q1FY26, versus Rs 730 crores in Q4FY25. Slippages were highest in credit cards and microfinance segments. The banks' bad loans, or gross NPAs, rose to 2.78%, from 2.69% in the same quarter last year.
Total deposits grew 11% during the year at Rs 1,12,734 crore, while advances grew 9% during the year at Rs 2,09,238 crores. The average CASA ratio was at 28% in Q1FY26, versus 29.3% same time last year.
The bank reported a provision coverage ratio 94.2%. Shares of RBL Bank ended 2.8% lower on Friday at Rs 260.7
It had a net profit of Rs 372 crore from the same time last year.
Net interest income (NII), the difference between the interest a bank earns on assets and the interest it pays out on its liabilities, decreased 13% to Rs 1,481 crore. Its net interest margins (NIMs) reduced to 4.5% from 5.67% in Q1FY25 and 4.89% in Q4FY25.
“We think margins have bottomed out now. We may still see some moderation in Q2, but we see it going up from Q3 onwards,” RBL Bank MD & CEO R Subramaniakumar said, while commenting on interest margins. “The recent cut in deposit rates should start showing an impact in Q2 and Q3,” he said.
The bank recorded net slippages of Rs 918 crores in Q1FY26, versus Rs 730 crores in Q4FY25. Slippages were highest in credit cards and microfinance segments. The banks' bad loans, or gross NPAs, rose to 2.78%, from 2.69% in the same quarter last year.
Total deposits grew 11% during the year at Rs 1,12,734 crore, while advances grew 9% during the year at Rs 2,09,238 crores. The average CASA ratio was at 28% in Q1FY26, versus 29.3% same time last year.
The bank reported a provision coverage ratio 94.2%. Shares of RBL Bank ended 2.8% lower on Friday at Rs 260.7
