RBL Bank's Q4 FY25 results: Net profit declines 81% to Rs 69 crore

Margin pressure, micro-finance loan write-offs dent bottom line

Private lender RBL Bank’s net profit declined by 81 per cent on a year-on-year (Y-o-Y) basis to Rs 69 crore for the fourth quarter ended March 2025 (Q4FY25), due to erosion in net interest margin (NIM) and a rise in bad loan provisions.

 

As for annual performance, the Mumbai-based bank’s net profit for FY25 was down by 40 per cent to Rs 695 crore from Rs 1,168 crore for FY24.

 

Its board has recommended a 10 per cent dividend per share for FY25, payable subject to the approval of the shareholders of the bank. Its stock closed 5.3 per cent lower at Rs 187.8 per share on the Bombay Stock Exchange (BSE) on Friday. The results were announced during market hours on Friday.

 

 

The bank’s net interest income (NII) shrank by 2.0 per cent to Rs 1,563 crore in Q4FY25, compared to Rs 1,600 crore in Q4FY24.

 

The bank’s NIM declined to 4.89 per cent in Q4FY25 from 5.45 per cent in Q4FY24, the bank said in a statement.

 

The non-interest income, comprising fees, commissions and treasury earnings, expanded by 14 per cent to Rs 1,000 crore in Q4FY25 from Rs 875 crore in Q4FY24. 

 

The lender’s provisions and contingencies rose sharply to Rs 785.14 crore in Q4FY25 from Rs 413.79 crore in the year-ago period. The bank, on a prudent basis, made an additional provision on gross non-performing assets (GNPA) of the Joint Liability Group (JLG) portfolio, also known as microfinance loans, taking total NPA provision on this portfolio to 100 per cent, the bank said in a filing with BSE.

 

Advances grew 10 per cent Y-o-Y to Rs 92,618 crore at the end of March 2025. Total deposits increased 7.0 per cent Y-o-Y to Rs 1.10 trillion.

 

RBL Bank’s gross GNPA ratio declined to 2.6 per cent in Q4 from 2.65 per cent a year ago. The net NPA ratio also declined to 0.29 per cent in March 2025 from 0.74 per cent in Q4FY24.

 

The provision coverage ratio including write-offs stood at 96.4 per cent in March 2025 compared to 89.8 per cent a year ago.

 

RBL Bank’s capital adequacy ratio (CAR) stood at 17.38 per cent with Common Equity Tier-I (CET1) at 12.5 per cent as at the end of March 2025.