RBL Bank Q1 results: Net profit grows 29% to Rs 372 crore, NII up 19.5%

RBL Bank’s net profit rose to Rs. 372 crore Year-on-Year (Y-o-Y) in the first quarter of FY25, up 29 per cent as compared to the Rs. 288 crore  in the previous corresponding period. 

The net interest income (NII) of the lender was up 19.5 per cent to Rs 1,699.9 crore, against Rs 1,422.3 crore in Q1FY24.

Bank’s asset quality improved with gross non-performing assets falling to 2.69 per cent in Q1FY25, against 3.22 per cent in the corresponding quarter of the previous financial year. Net non-performing assets (NNPA) stood at 0.74 per cent, against 1 per cent in the previous financial year.

The Net Interest Margin (NIM) stood at 5.67 per cent in the first quarter. Core fee income rose by 20 per cent Y-o-Y to Rs. 769 crore, while other income grew by 18 per cent Y-o-Y to Rs. 805 crore during the quarter.

“We are pleased to report another period of stable financial performance. Our performance continues to track our stated goals, with our execution starting to deliver promising outcomes. We are seeing early results from our strategic initiatives," said R Subramaniakumar, MD&CEO, RBL Bank.

The bank's total revenue rose by 19 per cent Y-o-Y to Rs. 2,505 crore.

Subramaniakumar further said that the bank will prioritise growing granular deposits. Total deposits of the lender grew by 18 per cent Y-o-Y to Rs 1.01 trillion during the quarter. Deposits of less than Rs 3 crore grew faster at 25 per cent Y-o-Y and 5 per cent Q-o-Q to Rs 49,980 crore, accounting for 49.3 percent of total deposit. Current account and savings account (CASA) ratio stood at 32.6 per cent.

"We keep our focus on growing granular deposits and we expect the growth momentum to continue," Subramaniakumar said.

Net advances of the bank grew by 19 per cent Y-o-Y to Rs 86,704 crore and retail advances grew by 31 per cent Y-o-Y to Rs 53,737 crore. The retail:wholesale mix of the bank stood at 62:38.

Housing loans grew by 52 per cent Y-o-Y, rural vehicle finance grew 74 per cent Y-o-Y and commercial banking grew by 25 percent Y-o-Y, the bank said.