MUMBAI: RBL Bank, a mid-tier private sector lender, announced a significant 24% decline in net income for the September quarter, totaling ₹222.5 crore, compared to ₹372 crore in the previous quarter, marking a 40.11% sequential drop. The bank did not specify reasons for this downturn.
The gross non-performing asset (NPA) ratio increased to 2.88% from 2.69% in June 2024, although it improved from 3.12% in the same quarter last year. The net NPA ratio also rose to 0.79%, up from 0.74% in June 2024.
Despite these challenges, net interest income grew by 9% to ₹1,615 crore, while net interest margin decreased to 5.04% from 5.35%. Other income surged by 25% to ₹1,733 crore, contributing to total revenue of ₹2,542 crore, a 17% increase year-over-year.
Operating expenses rose by 13% to ₹1,632 crore, with the cost-to-income ratio improving to 64.2% from 66.5%. Advances increased by 15% to ₹87,882 crore, with retail loans up 24% to ₹54,723 crore, reflecting a retail-wholesale mix of 62:38. Deposits also grew by 20% to ₹1,07,959 crore, with low-cost Casa deposits comprising 33.6%.
Housing loans soared by 56%, rural vehicle finance grew by 58%, and commercial banking expanded by 17%. The bank's total provisions, including specific, general, and contingent provisions, stand at 102%.