RBL Bank's Q4 net profit jumps 233% to ₹230cr
What's the story
RBL Bank has reported a whopping 233% year-on-year jump in its net profit for the fourth quarter of FY25-26. The bank's net profit for the quarter stood at ₹230 crore, compared to ₹69 crore in the same period last year. The growth was driven by strong business expansion, improved asset quality, and lower provisions.
Annual performance
An 18% rise in annual net profit
Along with the quarterly results, RBL Bank also reported an 18% year-on-year increase in its annual net profit. The figure now stands at ₹822 crore. The bank's board has recommended a dividend of ₹1 per share on a face value of ₹10 each for FY26, making it a 10% dividend for FY26.
Financial metrics
Net interest margin declines to lowest in 5 quarters
RBL Bank's net interest margin (NIM) fell to 4.41%, its lowest in five quarters. The NIM was at 4.63% in the previous quarter and 4.89% a year ago. However, the bank's net interest income grew by 7% year-on-year to ₹1,671 crore, while other income also saw a similar growth rate at ₹1,069 crore for the quarter under review.
Business expansion
Net advances up by 23% year-on-year
RBL Bank's net advances grew by an impressive 23% year-on-year to ₹1.14 lakh crore, with the retail segment contributing 59%. The lender also saw a growth in total deposits by 25% to ₹1.39 lakh crore. However, there was a contraction in credit card receivables and personal loan portfolios during this period.