RBL Bank Q3 Results: Net profit rockets 555% to Rs 214 crore, interest income up 5% YoY

Private sector lender RBL Bank on Saturday reported a massive 555% increase in its net profit to Rs 214 crore in the third quarter of FY26 compared to Rs 33 crore it reported in the same quarter of the previous financial year. On a quarter-on-quarter basis, the lender reported a 20% increase in profitability.The lender earned an interest income of Rs 1,657 crore, marking a 5% increase from Rs 1,585 crore it posted in the corresponding quarter of the previous year. The company’s NIM or net interest margin was 4.63%, lower by 33 basis points from 4.90% it reported in the third quarter of the previous financial year, the company said in a regulatory filing.Asset quality improved during the quarter, with the gross NPA ratio declining to 1.88% as of December 31, 2025, from 2.32% at the end of September 2025. The net NPA ratio also edged lower to 0.55% from 0.57% over the same period. The provision coverage ratio, including technical write-offs, stood at a healthy 93.2%.Advances grew 14% year-on-year and 3% quarter-on-quarter to Rs. 103,086 crore, with the retail-to-wholesale mix at 59:41. Retail advances rose 10% YoY and 1% QoQ to Rs. 60,611 crore, as the bank shed surplus liquidity in IBPC.Within retail, secured advances increased 24% YoY and 1% QoQ, supported by a reduction in IBPC outstanding from Rs. 4,500 crore to Rs. 1,500 crore, while unsecured retail advances declined 5% YoY but grew 1% sequentially. Wholesale advances expanded 21% YoY and 5% QoQ to Rs. 42,475 crore, led by commercial banking, which grew 30% YoY and 7% QoQ.Overall deposits increased 12% YoY and 3% QoQ to Rs. 119,721 crore. CASA deposits grew 6% year-on-year to Rs. 36,972 crore, with the CASA ratio standing at 30.9%.RBL Bank’s key ratios showed a mixed trend in the December quarter. Net interest margin declined to 4.63% in Q3FY26 from 4.90% in Q3FY25, while the cost-to-income ratio increased to 66.30% from 62.51%. Return on assets improved to 0.55% from 0.09%, and return on equity rose to 5.25% from 0.84%.On the asset quality front, gross NPA fell to 1.88% in Q3FY26 from 2.92% a year earlier, while net NPA edged up to 0.55% from 0.53%. Provision coverage ratio, including technical write-offs, stood at 93.21% compared with 93.46% in Q3FY25, while PCR declined to 71.09% from 82.17%.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)