{"id":12118,"date":"2025-07-19T14:22:55","date_gmt":"2025-07-19T08:52:55","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=12118"},"modified":"2025-07-19T18:21:45","modified_gmt":"2025-07-19T12:51:45","slug":"rbl-bank-q1-net-profit-drops-46-yoy-to-rs-200-cr-despite","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/rbl-bank-q1-net-profit-drops-46-yoy-to-rs-200-cr-despite\/","title":{"rendered":"RBL Bank Q1 Net Profit Drops 46% YoY to Rs.200 Cr Despite Sequential Recovery"},"content":{"rendered":"<p data-start=\"97\" data-end=\"213\"><em data-start=\"97\" data-end=\"213\">Higher provisions and stressed assets weigh on profitability; ARC transfers and stable income offer partial relief<\/em><\/p>\n<p data-start=\"281\" data-end=\"768\">RBL Bank posted a net profit of \u20b9200 crore in the first quarter of FY26, down 46% year-on-year from \u20b9371.5 crore in Q1 FY25. However, the bank showed a strong sequential recovery from \u20b969 crore in Q4 FY25, aided by operational improvements and provisioning reversals. The bank\u2019s total standalone income rose marginally to \u20b94,510 crore from \u20b94,476 crore in the preceding quarter, driven by steady interest income of \u20b93,441 crore and a rise in other income to \u20b91,069 crore.<\/p>\n<ul data-start=\"770\" data-end=\"944\">\n<li data-start=\"770\" data-end=\"808\">\n<p data-start=\"772\" data-end=\"808\">Q1 FY26 Net Profit: \u20b9200 crore<\/p>\n<\/li>\n<li data-start=\"809\" data-end=\"849\">\n<p data-start=\"811\" data-end=\"849\">Q1 FY25 Net Profit: \u20b9371.5 crore<\/p>\n<\/li>\n<li data-start=\"850\" data-end=\"887\">\n<p data-start=\"852\" data-end=\"887\">Q4 FY25 Net Profit: \u20b969 crore<\/p>\n<\/li>\n<li data-start=\"888\" data-end=\"944\">\n<p data-start=\"890\" data-end=\"944\">Other Income (QoQ): \u20b91,069 crore vs \u20b91,000 crore<\/p>\n<\/li>\n<\/ul>\n<p>Also Read : <a href=\"https:\/\/www.niftytrader.in\/content\/google-meta-summoned-by-ed-in-online-betting-ad-probe\/\">Google, Meta Summoned by ED in Online Betting Ad Probe; Tech Giants to Appear July 21<\/a><\/p>\n<h2 data-start=\"946\" data-end=\"1002\">Operating Profit and Provisions Weigh on Performance<\/h2>\n<p data-start=\"1004\" data-end=\"1406\">The bank\u2019s operating profit before provisions declined to \u20b9702.9 crore from \u20b9861 crore in Q4 and \u20b9859 crore in Q1 last year. Provisions for the quarter stood at \u20b9442 crore\u2014lower than \u20b9785 crore in Q4 FY25 but higher than \u20b9366 crore in the same period last year. The elevated provisioning level offset improvements in fee income and asset recoveries, thereby constraining bottom-line growth.<\/p>\n<ul data-start=\"1408\" data-end=\"1579\">\n<li data-start=\"1408\" data-end=\"1456\">\n<p data-start=\"1410\" data-end=\"1456\">Operating Profit (Q1 FY26): \u20b9702.9 crore<\/p>\n<\/li>\n<li data-start=\"1457\" data-end=\"1497\">\n<p data-start=\"1459\" data-end=\"1497\">Provisions (Q1 FY26): \u20b9442 crore<\/p>\n<\/li>\n<li data-start=\"1498\" data-end=\"1538\">\n<p data-start=\"1500\" data-end=\"1538\">Provisions (Q4 FY25): \u20b9785 crore<\/p>\n<\/li>\n<li data-start=\"1539\" data-end=\"1579\">\n<p data-start=\"1541\" data-end=\"1579\">Provisions (Q1 FY25): \u20b9366 crore<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"1581\" data-end=\"1647\">Asset Quality Mixed; GNPA Rises in Rupee Terms, Ratio Improves<\/h2>\n<p data-start=\"1649\" data-end=\"2185\">RBL Bank\u2019s gross NPAs (GNPA) increased in absolute terms to \u20b92,685.9 crore, but the GNPA ratio improved slightly to 2.78% from 2.60% in Q4 FY25 due to portfolio expansion. Net NPAs stood at \u20b9428.8 crore, with the Net NPA ratio rising to 0.45% from 0.29% sequentially. The bank\u2019s asset clean-up included a transfer of \u20b9975 crore worth of stressed credit card and corporate loans to Asset Reconstruction Companies (ARCs), which led to \u20b947.8 crore of provisioning reversals and a \u20b948 crore consideration inflow.<\/p>\n<ul data-start=\"2187\" data-end=\"2381\">\n<li data-start=\"2187\" data-end=\"2245\">\n<p data-start=\"2189\" data-end=\"2245\">GNPA (Q1 FY26): \u20b92,685.9 crore | GNPA Ratio: 2.78%<\/p>\n<\/li>\n<li data-start=\"2246\" data-end=\"2302\">\n<p data-start=\"2248\" data-end=\"2302\">NNPA (Q1 FY26): \u20b9428.8 crore | NNPA Ratio: 0.45%<\/p>\n<\/li>\n<li data-start=\"2303\" data-end=\"2341\">\n<p data-start=\"2305\" data-end=\"2341\">ARC Transfer Value: \u20b9975 crore<\/p>\n<\/li>\n<li data-start=\"2342\" data-end=\"2381\">\n<p data-start=\"2344\" data-end=\"2381\">Provision Reversal: \u20b947.8 crore<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2383\" data-end=\"2450\">RoA Declines, Net Worth Stable, Capital Base Expands Marginally<\/h2>\n<p data-start=\"2452\" data-end=\"2788\">Return on Assets (RoA), a key profitability metric, remained weak and below the 1.14% reported in Q1 FY25. The bank\u2019s net worth stood at \u20b914,957 crore. During the quarter, RBL Bank allotted 11.3 lakh equity shares under its ESOP scheme, slightly increasing its paid-up capital, though it had minimal dilution impact.<\/p>\n<ul data-start=\"2790\" data-end=\"2922\">\n<li data-start=\"2790\" data-end=\"2832\">\n<p data-start=\"2792\" data-end=\"2832\">Net Worth (Q1 FY26): \u20b914,957 crore<\/p>\n<\/li>\n<li data-start=\"2833\" data-end=\"2871\">\n<p data-start=\"2835\" data-end=\"2871\">RoA: Below 1.14% YoY benchmark<\/p>\n<\/li>\n<li data-start=\"2872\" data-end=\"2922\">\n<p data-start=\"2874\" data-end=\"2922\">Equity Shares Issued: 11.3 lakh (via ESOP)<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2924\" data-end=\"2995\">CEO Commentary: Focus on Balance Sheet Clean-up and Retail Recovery<\/h2>\n<p data-start=\"2997\" data-end=\"3331\">RBL Bank\u2019s CEO, R Subramaniakumar, emphasised the bank&#8217;s intent to stabilise asset quality and drive profitable growth in the results filing. \u201cWe have taken significant steps to cleanse our balance sheet and improve profitability. Retail stress is being actively managed, and we are seeing early signs of recovery,\u201d he stated.<\/p>\n<h3 data-start=\"2997\" data-end=\"3331\">Check This:<\/h3>\n<ul>\n<li data-start=\"2997\" data-end=\"3331\"><a href=\"https:\/\/www.niftytrader.in\/stocks-price\/rblbank\">RBL Bank Stock Price<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Higher provisions and stressed assets weigh on profitability; ARC transfers and stable income offer partial relief RBL Bank posted a net profit of \u20b9200 crore in the first quarter of FY26, down 46% year-on-year from \u20b9371.5 crore in Q1 FY25. However, the bank showed a strong sequential recovery from \u20b969 crore in Q4 FY25, aided [&hellip;]<\/p>\n","protected":false},"author":6,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1383],"class_list":{"0":"post-12118","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1383,"user_id":6,"is_guest":0,"slug":"pradeep","display_name":"Pradeep Sangatramani","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/09\/Pradeep-Sangatramni.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/09\/Pradeep-Sangatramni.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=12118"}],"version-history":[{"count":3,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12118\/revisions"}],"predecessor-version":[{"id":12152,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12118\/revisions\/12152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/12119"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=12118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=12118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=12118"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=12118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}