RBL Bank Q4 Earnings Plunge: Net Profit Falls 80.5% Year-on-Year to ₹69 Crore; NII Declines 2.3% to ₹1563 Crore

RBL Bank has unveiled its financial performance for the fourth quarter and the fiscal year concluding on March 31, 2025, during a post-market announcement on April 25. The bank recorded a standalone net profit of ₹68.7 crore, surpassing analysts’ expectations, despite a significant 80.5% decline from the ₹353 crore profit reported in the same quarter of the previous year. However, the bank showed improvement from the ₹33 crore profit seen in the preceding December quarter.

Annual Performance Overview

For the fiscal year FY25, RBL Bank’s net profit stood at ₹695 crore, a decline from ₹1,168 crore in FY24. This decrease highlights the challenges faced by the banking sector in recent times.

Net Total Income for Q4 FY25 increased by 4% year-on-year, reaching ₹2,563 crore.
For the entire FY25, total income rose by 13% year-on-year to ₹10,269 crore.

Interest Income Insights

The Net Interest Income (NII) for the fourth quarter amounted to ₹1,563 crore, marking a slight 2.3% decrease from ₹1,600 crore in Q4 FY24. Meanwhile, the net interest margin (NIM) fell to 4.89%, compared to 5.45% in the same quarter last year.

For the full year, NII grew by 7% to ₹6,463 crore, with NIM at 5.12%.
Pre-provision operating profit for Q4 FY25 was ₹861 crore, while for the full year, it increased by 20% to ₹3,627 crore.

Rising Operational Costs

Operating expenses for the last quarter rose by 7%, amounting to ₹1,702 crore, and saw an overall increase of 10% for FY25, totaling ₹6,642 crore. This highlights the bank’s efforts to manage costs effectively while expanding its operations.

Asset Quality and Provisions

In terms of asset quality, the Gross NPA (Non-Performing Assets) ratio improved to 2.60% from 2.65% in the previous year’s fourth quarter, with the Net NPA ratio significantly enhancing to 0.29% compared to 0.74% the year before.

However, the bank’s provisioning expenses surged to ₹785 crore in Q4 FY25, up from ₹414 crore in the same quarter last year. For the entire fiscal year, provisions reached ₹2,959 crore, compared to ₹1,778 crore in FY24.

Management’s Perspective

Reflecting on the bank’s performance, Mr. R Subramaniakumar, MD & CEO of RBL Bank, shared, “We have skillfully navigated a challenging landscape with resilience, achieving strong momentum in both secured retail and commercial banking. Our focus on building a solid base of dependable deposits has been crucial.” He emphasized proactive provisioning on the Joint Liability Group (JLG) loan portfolio, stating that the bank enters FY26 with a clean slate for this sector.

“The core engine remains robust, driven by disciplined execution and growth focused on profitability,” he added, expressing satisfaction with the bank’s steady performance and ongoing progress on strategic priorities.

Dividend Declaration

In a further development, RBL Bank has proposed a dividend of ₹1 per share (with a face value of ₹10 each) for the fiscal year, down from ₹1.50 per share in the prior year. This dividend proposal is subject to approval at the upcoming Annual General Meeting. The bank has accounted for the proposed dividend in its assessment of capital funds while calculating capital adequacy ratios as of March 31, 2025.

For more financial insights and updates on banking performance, you may want to explore detailed analyses from industry experts or financial news platforms.