RBL Bank Q4 FY25 Profit Plunges 81% Amidst Sharp Rise in Provisions

Mumbai-based private sector lender RBL Bank, on Friday, reported a steep fall in its fourth-quarter net profit during the 2024-25 financial year, mainly due to a huge jump in provisions. The bottom line during the quarter ended March 31, 2025, witnessed a sharp year-over-year contraction.

Q4 FY25 Net Profit Plunges 80.5% to ₹68.7 Crore

As per an exchange filing on Friday, RBL Bank's Q4 FY25 net profit fell to almost ₹68.7 crore, from a base quarter figure of ₹352.6 crore. This is an 80.5% fall from the same period last year. 

Provisions Surge 90% YoY, Fueling Profit Decline

The key reasons given for the sharp decline in profitability were a steep increase in provisions and a marginal dip in net interest income (NII). Provisions and contingencies for the quarter rose 90% year-on-year to ₹785.14 crore, or ₹785 crore as reported from ₹1,189 crore in Q3FY25 but rose compared with the ₹413 crore level of the year-ago quarter.

Net Interest Income Dips 2% to ₹1,563 Crore

The bank's Net Interest Income (NII), or its core income, for the period was ₹1,563 crore. This represented a decline of 2% from the previous year-ago period, or a 2.3% fall from a year ago the same quarter.

Asset Quality Strengthens: GNPA and Net NPA Ratios Fall

Even with pressure on profitability, RBL Bank saw an uptick in the asset quality for the March quarter. The gross non-performing asset (GNPA) ratio declined to 2.6% at the end of the March quarter from 2.92% for the quarter before that. The net NPA ratio too declined, at 0.29% against 0.53% in the December quarter. The write-offs by the bank in the quarter rose to ₹965 crore from ₹932 crore for the December quarter.

Other Income Climbs to ₹1,000 Crore

Independently, the other income of the bank during the quarter was ₹1,000 crore, up from ₹875 crore in the prior quarter.

Shares Slide 5.73% Post-Results Despite 7% Monthly Gain

After market hours on Friday, the results were announced, and shares of RBL Bank closed lower. The stock closed the day at its lowest level, down 5.73% at ₹188.09. In spite of the day's fall, the stock has risen by 7% in the past month.

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