RBL Bank Q2 profit jumps 36%, NII grows 41%; asset quality stable

RBL Bank | BNP Paribas Arbitrage sold 36,84,210 shares at Rs 125.86 in a bulk deal on NSE. (Image: PTI)

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26 Aug, 2025 12:21

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Private sector lender RBL Bank has reported healthy 35.80 percent on year growth in second quarter profit to Rs 204.54 crore, driven by all parameters with stable asset quality. However, higher provisions year-on-year limited profitability.

Net interest income during the quarter shot up 41.13 percent to Rs 592.97 crore with a whopping loan growth of 36.6 percent and 34 bps improvement in net interest margin YoY.

The bank said net advanced increased to Rs 45,872.66 crore in Q2FY19 against Rs 33,576.01 crore in Q2FY18 and deposits grew by 30.68 percent to Rs 47,790.09 crore YoY.

Net interest margin improved to 4.08 percent during the quarter, against 3.74 percent at the end of corresponding period last year, it added.

RBL has registered a healthy 38.18 percent on year growth in other income (non-interest income) to Rs 333.11 crore and operating profit grew by 48.13 percent to Rs 449 crore compared to year-ago. Core fee income was up by 60 percent to Rs 325.24 crore YoY.

Asset quality remained stable as gross non-performing assets (NPA) was flat at 1.4 percent and net NPA was lower at 0.74 percent against 0.75 percent on quarter-on-quarter basis.

In absolute terms, gross NPAs were higher by 8.23 percent at Rs 644.97 crore for the quarter ended September 2018 and net NPAs by 7.21 percent at Rs 338.55 crore compared to June quarter.

Provisions and contingencies declined 0.5 percent sequentially to Rs 139.68 crore in Q2FY19, but increased sharply by 86.51 percent YoY.

The bank said slippages at the end of September quarter stood at Rs 142 crore, which were lower compared to Rs 148 crore in June quarter. "Write-offs for the quarter were at Rs 65 crore against Rs 61 crore and recoveries were lower at Rs 27 crore against Rs 57 crore QoQ."

Provision coverage ratio improved to 61.45 percent in Q2FY19, from 60.41 percent in Q1FY19.

At 12:30 hours IST, the stock price was quoting at Rs 467.70, down Rs 1.90, or 0.40 percent on the BSE.