RBL Bank on Saturday posted 234 per cent year-on-year growth in net profit to ₹230 crore in the January–March quarter of financial year 2025–26 (Q4 FY26), compared to ₹69 crore in Q4 FY25. The increase was driven by a drop in provisions and supported by healthy growth in the asset book.
The bank’s net interest income (NII) for the quarter rose 7 per cent year-on-year to ₹1,671 crore, compared to ₹1,563 crore in Q4 FY25. Other income also increased 7 per cent year-on-year to ₹1,069 crore.
Net interest margin (NIM) stood at 4.41 per cent, down from 4.89 per cent in Q4 FY25. The margin in Q3 FY26 was 4.63 per cent.
Jaideep Iyer, executive director at RBL Bank, said in the post-earnings media call, “We expect margins in Q1 (FY27) to remain broadly similar to Q4 (FY26). Thereafter, we anticipate a change driven by the capital infusion, which should, in turn, lead to a material expansion in margins.”
Provisions declined 14 per cent year-on-year to ₹639 crore in the quarter, compared to ₹678 crore in Q4 FY25. The decline was due to the absence of accelerated provisioning in the microfinance segment this year.
Deposits grew 25 per cent year-on-year to ₹1.39 trillion at the end of March 2026. Current account and savings account (CASA) deposits rose 23 per cent year-on-year to ₹46,723 crore in Q4 FY26. The CASA ratio stood at 33.6 per cent.
Advances grew 23 per cent year-on-year to ₹1.14 trillion as on March 31, 2026. Retail advances increased 20 per cent year-on-year to ₹67,119 crore, while wholesale advances rose 28 per cent year-on-year to ₹47,112 crore. The retail-to-wholesale mix stood at 59:41.
Following the capital infusion into the bank, including Emirates NBD’s stake acquisition, the wholesale book is expected to account for 40–45 per cent of the balance sheet. Retail secured will contribute 35–40 per cent, while retail unsecured will make up around 20 per cent going forward. With the capital infusion, both in value and volume terms, balance sheet expansion will primarily be driven by the wholesale segment rather than retail, said R Subramaniakumar, MD and CEO, RBL Bank.
“There will be an increase in the wholesale segment following the capital infusion, which will eventually moderate as we work to diversify the balance sheet for margin stability. The growth rate of wholesale will be higher in the initial phase, after which growth will be stronger in the retail secured segment. This will be our strategy over the next two years,” he said.
The management of RBL Bank does not expect any significant impact from the ongoing conflict in West Asia. However, it remains cautious and is adopting a wait-and-watch approach.
The lender’s asset quality improved, with the gross non-performing assets (GNPA) ratio at 1.45 per cent as on March 31, 2026, compared to 1.88 per cent as on December 31, 2025, and 2.60 per cent as on March 31, 2025.
The net NPA ratio stood at 0.39 per cent as on March 31, 2026, compared to 0.55 per cent as on December 31, 2025, and 0.29 per cent as on March 31, 2025. The provision coverage ratio, including technical write-offs, was 94.91 per cent in the quarter, compared to 93.21 per cent in Q3 FY26 and 96.45 per cent in Q4 FY25.
The bank’s total capital adequacy ratio as of March 31, 2026, was 14.25 per cent, while the CET-1 ratio stood at 12.77 per cent.
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