RBL Bank Reports Q2 FY25 Results: Net Profit Falls 24% YoY to ₹223 Crore Amid Strong NII Growth

RBL Bank Limited announced its unaudited financial results for the quarter ending September 30, 2024, revealing a mixed performance:

1. Net Profit: The bank’s net profit stood at ₹223 crore, reflecting a 24% year-on-year decline from ₹294 crore in Q2 FY24 and a significant 40% decrease from ₹372 crore in Q1 FY25.
2. Net Interest Income (NII): NII increased by 9% year-on-year to ₹1,615 crore, compared to ₹1,475 crore in the same quarter last year.
3. Operating Profit: Operating profit rose by 24% year-on-year to ₹910 crore, up from ₹731 crore in Q2 FY24.
4. Operating Expenses: These expenses grew by 13% year-on-year to ₹1,632 crore in Q2 FY25, up from ₹1,448 crore in Q2 FY24.
5. Other Income: The bank’s other income surged by 32% year-on-year to ₹927 crore in Q2 FY25, compared to ₹704 crore in the previous year.
6. Asset Quality: The net non-performing asset (NPA) ratio slightly increased to 0.79% from 0.78% year-on-year, while the gross NPA ratio rose by 25 basis points to 2.88%.
7. CASA and Deposits: The CASA ratio grew by 13% year-on-year to ₹36,224 crore, while total deposits increased by 20% year-on-year to ₹107,959 crore.
8. Advances: The retail advances book saw a significant growth of 24% year-on-year, reaching ₹54,723 crore, and the overall net advances book grew by 15% year-on-year to ₹87,882 crore.
9. Provisions: The bank’s total provisions amounted to 102% of gross NPA, with credit costs reported at 80 basis points for Q2 FY25 and 140 basis points for the first half of FY25.

Management expressed satisfaction with the bank’s performance amidst challenges, emphasizing resilience in core operations and the effectiveness of their strategic initiatives, particularly in enhancing customer engagement through cross-selling and a unified approach.

Disclaimer: This summary is for informational purposes only and is based on RBL Bank’s unaudited financial results for Q2 FY25 as of October 19, 2024. The figures and statements included may be subject to change and should not be considered as financial advice or recommendations for investment. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.