RBL Bank Q4 Results: NII down 2.3% at ₹1563 crore; net profit down 80.5% YoY to ₹69 crore

RBL Bank reported a standalone net profit of ₹68.7 crore today after market hours, above street predictions for the fourth quarter and fiscal year that ended on March 31, 2025. In contrast to the net profit of ₹353 crore recorded during the same time last year, this represented a significant 80.5% drop.

The net profit increased sequentially, from ₹33 crore reported in the December quarter. The bank's net profit for FY25 was ₹695 crore, compared to ₹1,168 crore for FY24. In Q4 of FY25, net total income increased 4% year over year to ₹2,563 crore, and in FY25, it increased 13% year over year to ₹10,269 crore. The bank's net interest margin (NIM) was 4.89% in Q4FY25 compared to 5.45% in Q4FY24, and its net interest income (NII) was ₹1,563 crore, a 2.3% decrease from ₹1,600 crore in Q4FY24. NIM was 5.12% for FY25, while NII climbed 7% year over year to ₹6,463 crore. In Q4FY25, the bank's pre-provision operating profit was ₹861 crore; for the entire year, it increased by 20% year over year to ₹3,627 crore. Operating expenses climbed by 10% to ₹6,642 crore in FY25, up 7% year over year to ₹1,702 crore in Q4FY25.

Regarding asset quality, the Net NPA ratio increased to 0.29% from 0.74%, while the Gross NPA ratio decreased to 2.60% from 2.65% in Q4FY24. In the meantime, the bank's provisions increased significantly from ₹414 crore in Q4FY24 to ₹785 crore in the reporting quarter. Provisions for FY25 were ₹2,959 crore, compared to ₹1,778 crore.

"We have navigated a complex environment with resilience and focus, delivering strong momentum in secured retail and commercial banking while deepening our base of granular, sticky deposits," said Mr. R Subramaniakumar, MD & CEO, RBL Bank, in his reflection on the company's performance this quarter. The Bank is starting FY26 with a fresh start for the JLG business thanks to proactive, cautious provisioning on the JLG loan portfolio. We have now had nearly zero credit expenses for eight straight quarters in our secured retail and wholesale portfolios. "The basic engine—fueled by focused customer attention, profitability-led growth, and disciplined execution—remains robust. We're happy to end the year with consistent results and ongoing advancements on our top priorities," he stated.

Dividend announcement

 Subject to member approval at the next Annual General Meeting, the firm has proposed a dividend of ₹1 per share (face value of ₹10 apiece) for the year, as opposed to ₹1.50 per share the year before.

When determining capital funds and calculating the capital adequacy ratios as of March 31, 2025, the impact of the proposed dividend has been taken into account.