RBL Bank (RBLBANK) Q1 24/25 earnings summary

Executive summary

• Advances grew 19% YoY, led by 31% growth in retail advances; net profit rose 29% YoY to INR 372 crore.

• Granular deposits increased 25% YoY, now comprising 49.3% of total deposits; total deposits reached ₹1,01,352 crore.

• Asset quality improved with GNPA at 2.69% and NNPA at 0.74%.

• Operating profit increased 33% YoY to ₹859 crore; NII rose 20% YoY to ₹1,700 crore.

• Unaudited financial results for the quarter ended June 30, 2024, were approved and reviewed by auditors.

Financial highlights

• Other income was ₹805 crore, up 18% YoY; core fee income up 20% YoY.

• OPEX grew 13% YoY; cost-to-income ratio at 65.7%.

• PPOP was ₹859 crore, up 33% YoY.

• Credit cost for the quarter was 59 bps; PCR at 73.13%.

• Total income increased 19% YoY to ₹2,505 crore; standalone total income at ₹430,170 lakh.

Outlook and guidance

• Deposit growth guidance maintained at 18-20%, with granular deposits expected to grow 23-25%.

• Loan growth target remains at 20% for the year; targeting 20%+ CAGR in advances and deposits through FY26.

• Credit cost expected in the 2.1-2.2% range for FY25.

• ROA targeted to grow 15-20% over last year, aiming for 1.15% by Q4 FY25.

• Adoption of revised RBI investment portfolio framework from April 1, 2024, expected to enhance net worth and transparency.