Mumbai: RBL Bank announced a significant surge in its net profit for the third quarter, reaching ₹214 crore for the period ending December 31, 2025. This marks a substantial increase compared to the ₹33 crore profit reported in the same quarter last year. The private sector lender also saw its Net Interest Income (NII) rise by 5% year-on-year, hitting ₹1,657 crore. The strong performance comes alongside a notable improvement in the bank's asset quality.[fortuneindia+4]
Profitability and Core Earnings Boost
RBL Bank's net profit showed a remarkable six-fold increase over the previous year, highlighting a strong turnaround in its financial health. On a quarter-on-quarter basis, the bank's profit grew by 20% from ₹178.52 crore in the second quarter of the current fiscal year. This robust growth occurred despite a one-off pre-tax expense of ₹32 crore. This expense related to changes in employee wages under new labor codes that became effective in November 2025.[whalesbook+5]
Net Interest Income, which represents the core earnings from the bank's lending activities, climbed to ₹1,657 crore. This is up from ₹1,585 crore in the corresponding quarter of the previous year, showing a 4.6% year-on-year increase. The NII also grew by 7% when compared to the previous quarter. The bank's Net Interest Margin (NIM), a key indicator of lending profitability, stood at 4.63% for the quarter. While slightly lower than 4.90% in Q3 FY25, it improved from 4.51% recorded in the second quarter of FY26.[fortuneindia+18]
Significant Improvement in Asset Quality
A major highlight of the quarter was the significant improvement in RBL Bank's asset quality. The Gross Non-Performing Assets (GNPA) ratio, which measures the percentage of loans that have gone bad, declined to 1.88% as of December 31, 2025. This is a notable improvement from 2.32% in September 2025 and 2.92% a year ago.[fortuneindia+7]
Similarly, theNet Non-Performing Assets (NNPA) ratio, representing bad loans after accounting for provisions, eased to 0.55% from 0.57% in the previous quarter. This reduction indicates better loan recovery and management by the bank. The Provision Coverage Ratio (PCR), including technical write-offs, remained strong at 93.2%. This high ratio demonstrates the bank's robust ability to cover potential losses from bad loans.[fortuneindia+13]
Strong Growth in Loans and Deposits
RBL Bank reported healthy growth across its loan book and deposits. Net advances, which are the total loans given by the bank, increased by 14% year-on-year to ₹103,086 crore (approximately ₹1.03 lakh crore). Quarter-on-quarter,net advances grew by 3%. The bank's loan portfolio maintained a balanced mix, with retail loans accounting for 59% and wholesale loans making up 41% of the total.[m+4]
Secured retail advances, which are loans backed by collateral, saw a strong rise of 24% year-on-year, reaching ₹34,407 crore. Wholesale advances also grew significantly, increasing by 21% year-on-year to ₹42,475 crore. The commercial banking segment performed exceptionally well, registering a 30% year-on-year growth.[m+7]
On the deposits front,total deposits grew by 12% year-on-year and 3% quarter-on-quarter, reaching ₹119,721 crore (approximately ₹1.19 lakh crore). Current Account Savings Account (CASA) deposits, which are a low-cost source of funds for banks, increased by 6% year-on-year to ₹36,972 crore. The CASA ratio stood at 30.9%.[fortuneindia+6]
Other Key Financials and Management Commentary
Other income, excluding a one-off gain from the sale of a strategic equity investment in the previous year, grew by 13% both year-on-year and quarter-on-quarter, amounting to ₹1,050 crore. Core fee income, generated fromvarious banking services, also remained robust, growing 10% year-on-year and 3% quarter-on-quarter to ₹959 crore.[businessworld+1]
Provisions, the funds set aside by the bank to cover potential loan losses, increased by 28% year-on-year to ₹639 crore, up from ₹500 crore in the year-ago period. Despite this increase, the overall financial health improved due to better asset quality. The bank maintains a strong capital position, with a total Capital Adequacy Ratio (CAR) of 14.94% and a Common Equity Tier-1 (CET-1) ratio of 13.45% as of December 31, 2025. These ratios indicate the bank's ability to absorb potential losses. Liquidity remains comfortable, with an average Liquidity Coverage Ratio (LCR) of 125% during the quarter.[businessworld+5]
R. Subramaniakumar, the Managing Director and Chief Executive Officer of RBL Bank, commented on the results. He stated that the third quarter of fiscal year 2026 marked another period of stable and consistent operational performance for the bank. He highlighted that secured retail advances and commercial banking drove asset expansion, while granular deposits supported liability growth. Subramaniakumar also noted the material improvement in collection efficiency within the joint liability group portfolio, with disbursement rates nearing normal levels. The bank continues to expand its reach, operating a total of 1,921 customer touchpoints, including 580 branches and 1,341 business correspondent branches.[fortuneindia+5]
