RBL Bank Reports Significant Q1 Financial Changes

RBL Bank has announced a 46% year-on-year decline in net profit, falling to Rs 200 crore for the June 2025 quarter. This downturn is attributed to reduced core income and shrinking interest margins, marking a stark contrast to the Rs 372 crore net profit recorded in the same quarter the previous year.

Strategic Adjustments Amid Financial Challenges

The bank's net interest income (NII) also saw a 13% decrease to Rs 1,481 crore, influenced by a 117 basis point contraction in net interest margin (NIM) to 4.5%. Despite these challenges, RBL Bank experienced a 9% growth in its loan book, alongside a 33% increase in other income, reaching Rs 1,069 crore.

Future Outlook and Strategic Focus

Managing Director and CEO R Subramaniakumar highlighted the bank's strategic shift towards secured retail loans, which grew by 23%, and away from high-risk unsecured lending. The bank remains optimistic about achieving its full-year credit growth target of 14–15%, with expectations of improved performance in the latter half of FY26.