RBL Bank Q3 Net Profit Skyrockets 555% to Rs 214 Crore
RBL Bank delivered a stellar performance in the third quarter of fiscal year 2026. The bank reported a net profit of Rs 214 crore. This marks a massive 555% increase from the Rs 33 crore profit recorded in the same quarter last year. Earnings in the previous year were subdued due to high provisions. The current quarter's profit also shows a 20% growth over the Rs 179 crore profit in the preceding quarter.
Profit for the December quarter could have been even higher. The bank incurred one-off expenses of Rs 32 crore. These expenses arose from revised wage definitions under new labour codes. The codes came into effect in November 2025.
Balance Sheet Shows Steady Growth
Balance-sheet growth remained stable during the quarter. Total deposits increased by 12% compared to the same period last year. On a sequential basis, deposits grew by 3% to reach Rs 1,19,721 crore. Net advances also showed strong growth. They rose by 14% year-on-year and 3% quarter-on-quarter to Rs 1,03,086 crore. The credit-to-deposit ratio stood at approximately 86.1%.
Within the deposit portfolio, the share of current and savings accounts was 30.9%. CASA deposits increased by 6% year-on-year to Rs 36,972 crore. Granular deposits of less than Rs 3 crore accounted for 51.5% of total deposits.
Income and Expenses Analysis
Total income for the quarter increased to Rs 2,707 crore. This represents a 2% rise from a year earlier and a 9% increase from the previous quarter. Net interest income grew by 5% year-on-year and 7% sequentially to Rs 1,657 crore. Non-interest income stood at Rs 1,050 crore. It marked a 13% quarter-on-quarter increase despite a marginal 2% decline from a high base last year. Last year's figures included one-off investment gains.
Core fee income remained a key contributor. It rose by 10% year-on-year to Rs 959 crore. This growth was driven by transaction volumes and retail segments such as credit cards and processing fees. Other income from treasury, foreign exchange, and capital markets activities recovered sharply. It increased to Rs 91 crore from just Rs 7 crore in the September quarter. Recoveries from written-off retail accounts contributed Rs 105 crore during the quarter.
Operating expenses rose by 8% year-on-year to Rs 1,795 crore. Employee costs increased by 11% to Rs 502 crore. This partly reflects the impact of the labour code changes. The cost-to-income ratio for the quarter stood at 66.3%.
Provisions and Asset Quality
Provisions declined by 46% year-on-year to Rs 639 crore. However, they were 28% higher than the previous quarter. This increase was largely due to higher provisions on advances of Rs 634 crore. The provision coverage ratio remained at 71.09%.
Asset quality continued to improve. The gross NPA ratio declined by 104 basis points year-on-year to 1.88%. The net NPA ratio stood at 0.55%. This is lower than the 0.57% in the previous quarter but marginally higher than the 0.53% a year earlier. Credit cost for the quarter remained contained at 64 basis points.
Net interest margin improved sequentially to 4.63% from 4.51% in the September quarter. This indicates stabilising pricing despite a higher cost of funds.
