RBL Bank Q4 Profit Triples To ₹230 Cr As Provisions Decline

RBL Bank on Saturday said its March quarter FY26 standalone net profit more than tripled to Rs 230 crore aided by lower provisions and improvement in asset quality. The private sector bank logged a profit of Rs 69 crore in the year-ago period. In the full financial year 2025-26, net profit rose 18 per cent to Rs 822 crore.

Core net interest income (NII) grew 7 per cent on-year to Rs 1,671 crore in January-March FY26 compared with Rs 1,563 crore a year ago, a statement said.

However, the bank's net interest margin (NIM) contracted to 4.41 per cent from 4.89 per cent a year earlier, and 4.63 per cent from December quarter.

Provisions fell 14 per cent to Rs 678 crore in the quarter, helping operating profit rise 11 per cent to Rs 955 crore.

On the asset quality front, the bank reported continued strengthening in its loan book. Gross non-performing assets (GNPA) ratio improved to 1.18 per cent at the end of March 2026 from 2.60 per cent a year earlier.

Commenting on the outlook, MD and CEO R Subramaniakumar in an earnings call said the lender expects growth momentum to continue in the current financial year, subject to economic conditions.

"Our plan for the growth, if all other economic conditions and environment conditions remain, we will see the similar growth in FY27 also," he said.

He added that the bank expects margins to remain stable in the near term, with potential improvement following the proposed capital infusion.

"On margins, we expect Q1 to be somewhat similar to Q4. Post that, we expect capital infusion, which will naturally result in a material expansion in margins," he noted, referring to the infusion from Emirates NBD.

The CEO also said the bank remains focused on cost optimisation even as it continues to invest in expansion.

"Keeping away the strategic investment and for our expansion cost, other costs will keep coming down," he added.