RBL Bank Q1 Net Profit Down 46% to Rs 200 Cr

Mumbai, Jul 19 (PTI) Private sector lender RBL Bank on Saturday posted a 46 per cent drop in its June 2025 quarter net profit to Rs 200 crore as it faced challenges on the core income front.

The lender had posted a net profit of Rs 372 crore in the year-ago period, while the same figure had stood at Rs 69 crore in the preceding March quarter.

Its core net interest income degrew 13 per cent to Rs 1,481 crore, impacted by an over 1.15 per cent drop in the net interest margin to 4.5 per cent against 5.67 per cent a year ago despite a 9 per cent loan growth.

The other income grew 33 per cent to Rs 1,069 crore, which helped the bottom line.

Its managing director and chief executive R Subramaniakumar said it has continued with the decline in the high-margin but high-risk unsecured portfolio, reducing the portfolio by as much as 10 per cent during the quarter and added that it is growing in areas like secured retail at 23 per cent.

The CEO said the bank is maintaining its credit growth guidance of 14-15 per cent for the fiscal year.


The unsecured segment, which is one of the prime reasons for the subdued performance over the last few quarters, is showing some improvement on the slippages front, he added.

A senior bank official said asset growth in the unsecured segment will come back from the second half of FY 26 after the improvements in the slippages become sustained.

The official also said that the NIM has bottomed out and there is a chance for a "reasonable improvement" in the number on the back of deposit rate cuts and the shifts in loan mix towards higher-yielding assets.

The overall slippages came at Rs 1,060 crore, and included two accounts in the small business banking, which are likely to come back to performing soon, the CEO said.

The gross non-performing assets ratio expanded to 2.78 per cent from 2.60 per cent as of March.

The overall provisions increased 21 per cent to Rs 442 crore from Rs 366 crore in the year-ago period.

The bank's overall capital adequacy stood at 15.59 per cent, with the core buffer at 14.05 per cent.