RBL Bank’s profits soar! Discover the astonishing Q1 FY25 performance

The Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter ending June 30, 2024, in a meeting held on July 20, 2024. The results reveal robust growth across multiple financial metrics, highlighting the bank’s strong performance.

RBL Bank’s operating profit increased by 33% year-on-year (YoY), reaching ₹859 crore. The net profit saw a 29% YoY growth, amounting to ₹372 crore, with a return on assets (ROA) of 1.14%. There was a 19% YoY growth in net advances, totaling ₹86,704 crore, while retail advances surged by 31% YoY to ₹53,737 crore. Total deposits grew by 18% YoY to ₹101,352 crore. Granular deposits (deposits less than ₹3 crore) grew faster at 25% YoY, representing 49.3% of total deposits compared to 45.8% as of March 31, 2024. Gross non-performing assets (GNPA) were at 2.69%, and net non-performing assets (NNPA) were at 0.74%. The provision coverage ratio (PCR), including technical write-offs, stood at 90.0%. RBL Bank is well-capitalized with a total capital adequacy ratio (CRAR) of 15.56%, including Q1 FY25 profits, and a common equity tier 1 (CET 1) ratio of 13.85%.

In a detailed reflection on the quarter’s achievements, Mr. R Subramaniakumar, Managing Director and CEO of RBL Bank, expressed satisfaction with the stable financial performance. He noted that the bank’s performance continues to align with its strategic goals, with promising outcomes from its initiatives.

The total revenue grew by 19% YoY to ₹2,505 crore. Net interest income (NII) increased by 20% YoY to ₹1,700 crore, with a net interest margin (NIM) of 5.67%. Other income grew by 18% YoY to ₹805 crore, and core fee income saw a 20% YoY growth, reaching ₹769 crore. The cost-to-income ratio improved to 65.7%, down 357 basis points YoY. RBL Bank added 3.2 lakh new customers during the quarter, bringing the total customer base to 15.90 million, up from 13.65 million in Q1 FY24.

RBL Bank has significantly expanded its distribution network. As of June 30, 2024, the bank has 1,806 touchpoints, including 545 bank branches and 1,261 business correspondent (BC) branches, of which 297 are banking outlets. RBL Finserve Limited, a 100% subsidiary of RBL Bank, accounts for 947 BC branches.

The positive financial results of RBL Bank for Q1 FY25 are indicative of its strong strategic execution and resilience in the competitive banking sector. The growth in operating profit, net profit, and deposits, coupled with a focus on granular retail deposits, underscores the bank’s robust operational framework and customer-centric approach.