RBL Bank Q4 results: Profit triples to ₹230 cr as provisions decline

RBL Bank on Saturday said its standalone net profit for the March quarter of FY26 more than tripled to ₹230 crore, aided by lower provisions and an improvement in asset quality.

The private sector bank had reported a profit of ₹69 crore in the year-ago period. For the full financial year 2025–26, net profit rose 18% to ₹822 crore.

Core net interest income (NII) grew 7% year-on-year to ₹1,671 crore in Q4FY26, compared with ₹1,563 crore a year ago, the bank said in a statement.

However, the bank's net interest margin (NIM) contracted to 4.41% from 4.89% a year earlier and 4.63% in the December quarter.

Provisions fell 14% to ₹678 crore during the quarter, helping operating profit rise 11% to ₹955 crore.

On the asset quality front, the bank reported continued improvement in its loan book. The gross non-performing assets (GNPA) ratio improved to 1.18% at the end of March 2026 from 2.60% a year earlier.

Commenting on the outlook, Managing Director and CEO R Subramaniakumar said during an earnings call that the lender expects growth momentum to continue in the current financial year, subject to economic conditions.

“Our plan for growth is that, if economic and environmental conditions remain stable, we expect to see similar growth in FY27 as well,” he said.

He added that the bank expects margins to remain stable in the near term, with potential improvement following the proposed capital infusion.

“On margins, we expect Q1 to be somewhat similar to Q4. Post that, we expect capital infusion, which will likely result in a material expansion in margins,” he noted, referring to the infusion from Emirates NBD.

The CEO also said the bank remains focused on cost optimisation even as it continues to invest in expansion.

“Excluding strategic investments and expansion-related costs, other costs will continue to decline,” he added.