RBL Bank reports mixed Q3 numbers: here are highlights of earnings call

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26 Aug, 2025 12:21

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RBL Bank has reported a 69 percent fall in its Q3 net profit to Rs 70 crore against Rs 225.2 crore in the same quarter last year.

The private bank’s net interest income (NII) rose 40.8 percent to Rs 922.6 crore against Rs 655.1 crore in the year-ago period

The bank’s gross NPA was up at 3.33 percent against 2.60 percent and net NPA was up at 2.07 percent against 1.56 percent, QoQ.

The company’s loan growth stood at 20 percent YoY and 2 percent QoQ.

The net interest margin was at 4.57 percent against 4.31 percent and the provision coverage ratio was at 58.07 percent versus 58.50 percent, QoQ.

Here are the highlights of RBL Bank's earnings call collated by Narnolia Financial Advisors:

NPA: The bank has recognised Rs 710 crore of additional NPA from the stressed pool of Rs 1,800 crore previously outlined and has made provision of Rs 340 crore on it. More than 80% of the previously outlined portfolio has been recognised as NPA. The management expects tail of portfolio to go through in Q4FY20.

Slippages: The slippages have increased, excluding those on the watchlist, on account of the change in recognition policy from month-end to daily basis.

New branches: The bank is on track to open 400 branches during the year.

Collection to improve: Assam accounts for nearly 4% of the microfinance loan book. The collection efficiency was down to 85% but it is expected to improve. The ticket size of new loan is Rs 29,000, much below the industry average of Rs 44,000.

SMA book: SMA book is around 39 bps, which is a marginal increase from last few quarters, while 35% of the book is self-employed and the balance is salaried.

Credit cost to stabilise: Credit cost of cards went to 5 percent due to daily NPA but is expected to stabilise to 4.5%-4.6%.