RBL Bank (RBLBANK) Q1 25/26 earnings summary

Executive summary

• Deposits grew 11% year-over-year and 2% sequentially, with granular retail deposits up 16% year-over-year and 5% sequentially, now comprising 51.4% of total deposits.

• Net profit for Q1 FY26 was ₹200 crore, down 46% year-over-year but up 192% sequentially; net advances increased 9% year-over-year, led by secured retail and commercial banking.

• Net interest income declined 13% year-over-year to ₹1,481 crore, while other income rose 33% year-over-year to ₹1,069 crore; operating costs rose 12% year-over-year, mainly due to higher collection costs in cards.

• The bank is focusing on a more balanced portfolio, emphasizing secured retail and commercial banking while moderating unsecured retail growth.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with limited review reports issued by joint statutory auditors and an unmodified conclusion.

Financial highlights

• Net Interest Margin (NIM) for Q1 FY26 was 4.5%, down from 5.67% year-over-year; cost-to-income ratio increased to 72.4%.

• Total net income rose 2% year-over-year to ₹2,550 crore; pre-operating profit stood at ₹703 crore; PAT for the quarter was ₹200 crore.

• CASA ratio at 32.5%; CASA deposits grew 11% year-over-year to ₹36,614 crore.

• Provisions were ₹442 crore, up 21% year-over-year but down 44% sequentially.

• Standalone and consolidated total income for Q1 FY26 was ₹451,057 lakh and ₹451,257 lakh, respectively.

Outlook and guidance

• Margins are expected to have bottomed out in Q1, with improvement anticipated from Q3 as deposit costs decline and unsecured business contribution stabilizes.

• The bank maintains guidance for a 1% exit ROA by year-end and expects mid-teens loan growth, with secured retail growing in the early to mid-20% range.

• Deposit rate cuts are expected to yield results from Q2 FY26 onwards; operating expenses, especially in credit cards, are expected to be rationalized in coming quarters.

• No explicit forward-looking guidance provided in statutory filings, but results reflect continued focus on asset quality and operational efficiency.