RBL Bank Reports 27% Year-on-Year Growth in Net Profit for Q1 FY27
RBL Bank Limited has announced its unaudited financial results for the quarter ended June 30, 2026. The bank reported a significant increase in profitability and operational efficiency during the period, supported by a substantial capital infusion from Emirates NBD Bank (P.J.S.C).The Board of Directors approved the results during a meeting held on July 17, 2026. The performance highlights a robust growth trajectory in net profit and operating profit, alongside improvements in cost to income ratios and asset quality metrics.
Financial Performance Highlights
For the first quarter of FY27, RBL Bank recorded a net profit of 254 crore, representing a 27% year-on-year (YoY) growth. Operating profit rose by 31% YoY to 923 crore. Net Interest Income (NII) grew 12% YoY to ` 1,654 crore, while the bank maintained a Net Interest Margin (NIM) of 4.13%.The restated operating expenses for the quarter were ` 1,691 crore, marking an 8% YoY decline and a 5% quarter-on-quarter (QoQ) decrease. This efficiency led to a cost to income ratio of 64.7%, an improvement from the 72.4% recorded in Q1 FY26.
Key Financial Data (in ` crore)
| Metric | Q1 FY27 | Q1 FY26 | YoY | Q4 FY26 | QoQ |
|---|---|---|---|---|---|
| Net Interest Income | 1,654 | 1,481 | 12% | 1,671 | -1% |
| Other Income | 959 | 1,069 | -10% | 1,069 | -10% |
| Net Total Income | 2,614 | 2,550 | 2% | 2,740 | -5% |
| Operating Expenses | 1,691 | 1,847 | -8% | 1,785 | -5% |
| Operating Profit | 923 | 703 | 31% | 955 | -3% |
| Provisions and contingencies | 599 | 442 | 35% | 678 | -12% |
| Net Profit | 254 | 200 | 27% | 230 | 10% |
Deposit and Advances Growth
The bank saw a steady growth in its deposit base, with total deposits rising 11% YoY to 124,829 crore. Notably, granular deposits (those less than 3 crore) grew faster at 13% YoY, accounting for 52.4% of the total deposit mix. The average CASA ratio stood at 25.2% for the quarter.On the lending side, Net Advances grew 23% YoY to
116,223 crore. The bank maintained a Retail:Wholesale mix of 55:45. Specifically, Retail Advances grew 13% YoY to 64,196 crore, while Wholesale advances saw a sharp 38% YoY increase to ` 52,027 crore.Comparative Data for June 30 (in ` crore)
| Category | June 30, 2026 | June 30, 2025 | YoY | March 31, 2026 | QoQ |
|---|---|---|---|---|---|
| Advances | 1,16,223 | 94,431 | 23% | 1,14,232 | 2% |
| Retail Advances | 64,196 | 56,625 | 13% | 67,119 | -4% |
| Secured Retail Advances | 36,561 | 30,946 | 18% | 40,207 | -9% |
| Deposits | 1,24,829 | 1,12,734 | 11% | 1,39,018 | -10% |
| Granular Deposits | 65,365 | 57,934 | 13% | 63,943 | 2% |
| CASA Deposits | 36,468 | 36,614 | 0% | 46,723 | -22% |
| Average CASA for Quarter | 32,592 | 29,351 | 11% | 33,814 | -4% |
| Investments | 37,777 | 23,829 | 59% | 32,078 | 18% |
Asset Quality and Capital Position
RBL Bank reported a significant improvement in asset quality. The Gross NPA ratio stood at 1.30% as of June 30, 2026, compared to 2.78% in the same period during the previous year. The Net NPA ratio was 0.37%, down from 0.45% YoY. The Provision Coverage Ratio (PCR), including technical write-offs, remains strong at 94.94%.In terms of capitalization, the total capital adequacy stood at 33.3% as of June 30, 2026, a substantial increase from 14.2% as of March 31, 2026. The CET1 ratio also rose to 32.2%.
Key Ratios (%)
| Particulars | Q1 FY27 | Q1 FY26 | Q4 FY26 |
|---|---|---|---|
| Net Interest Margin | 4.13 | 4.50 | 4.41 |
| Cost to Income | 64.70 | 72.44 | 65.13 |
| Credit Cost | 0.54 | 0.50 | 0.65 |
| Return on Assets | 0.57 | 0.56 | 0.55 |
| Return on Equity | 4.01 | 5.11 | 5.69 |
| Gross NPA | 1.30 | 2.78 | 1.45 |
| Net NPA | 0.37 | 0.45 | 0.39 |
| PCR incl. Technical Write-offs | 94.94 | 94.18 | 94.91 |
| PCR | 72.00 | 84.03 | 73.57 |
Strategic Developments and Reach
During the quarter, Emirates NBD Bank (P.J.S.C) infused approximately USD 2.75 billion (~INR 260 billion) into RBL Bank via a preferential issue on June 18, 2026. This capital injection supports the bank's long-term growth and scaling initiatives.The bank also saw its long-term credit ratings upgraded to AAA.
As of June 30, 2026, the bank operates with 1,967 total touchpoints. This includes 628 bank branches (with 25 opened in the current quarter) and 1,339 business correspondent branches. Of the business correspondent branches, 251 are designated as banking outlets. RBL Finserve Limited, a 100% subsidiary of the Bank, manages 1,080 business correspondent branches.
RBLBANK Stock Price Movement
RBL Bank Limited shares rallied 1.30% today to settle at ₹368.10. The stock saw active participation with a volume of 4.27 million shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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