RBL Bank shares rally 6% after Q4 results; Key earnings highlights here

Business Standard

28-04-2025

Shares of RBL Bank surged over 6 per cent on Monday even after the lender posted a profit decline of 81 per cent on a year-on-year (Y-o-Y) basis in the March quarter of the previous financial year. The bank posted an improvement in its asset quality in the quarter under review.
RBL Bank stock rose as much as 6.54 per cent during the day to ₹200.4 per share, the biggest intraday gain since December 4, 2024. The stock pared gains to trade 5.7 per cent higher at ₹198.8 apiece, compared to a 0.88 per cent advance in Nifty50 as of 10:42 AM.
The lender's scrip has risen by over 20 per cent from its recent lows of ₹164, which it hit early this month. The stock has risen 27 per cent this year, compared to a 2.3 per cent advance in the benchmark Nifty50. RBL Bank has a total market capitalisation of ₹12,202.18 crore.
The bank's profit fell by 81 per cent Y-o-Y to ₹69 crore for the fourth quarter ended March 2025, primarily due to a decline in net interest margin (NIM) and an increase in bad loan provisions. For the full year, the Mumbai-based bank reported a 40 per cent drop in net profit for FY25, which stood at ₹695 crore, down from ₹1,168 crore in FY24.
In Q4FY25, the bank's net interest income (NII) decreased by 2 per cent to ₹1,563 crore, compared to ₹1,600 crore in the same quarter of FY24. The NIM also contracted to 4.89 per cent in Q4FY25, from 5.45 per cent in Q4FY24. On a positive note, non-interest income, including fees, commissions, and treasury earnings, grew by 14 per cent to ₹1,000 crore in Q4FY25, up from ₹875 crore in Q4FY24.
RBL Bank's capital adequacy ratio (CAR) stood at 17.38 per cent with Common Equity Tier-I (CET1) at 12.5 per cent as at the end of March 2025. Advances grew 10 per cent Y-o-Y to ₹92,618 crore at the end of March 2025. Total deposits increased 7.0 per cent Y-o-Y to ₹1.10 trillion.
RBL Bank provisions and NPAs:
The lender's provisions and contingencies rose sharply to ₹785.14 crore in Q4FY25 from ₹413.79 crore in the year-ago period. RBL Bank's gross GNPA ratio declined to 2.6 per cent in Q4 from 2.65 per cent a year ago. The net NPA ratio also declined to 0.29 per cent in March 2025 from 0.74 per cent in Q4FY24.
The provision coverage ratio, including write-offs, stood at 96.4 per cent in March 2025 compared to 89.8 per cent a year ago.
Analysts rating:
According to Bloomberg data, 12 of the 21 analysts covering the stock have given it a 'buy' rating, two recommend a 'hold,' and seven have issued a 'sell' call on the lender. The consensus target price of analysts tracked by Bloomberg indicates an upside downside of 3.4 per cent for the stock.