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Gross non-performing asset (NPA) ratio rose slightly to 2.92% as of December 31, 2024, compared to 2.88% in the previous quarter, but improved from 3.12% a year ago. Net NPA ratio fell to 0.53% from 0.79% in September 2024 and 0.80% in December 2023.
In absolute terms, gross NPAs increased to ₹2,701 crore as of 31 December 2024, from ₹2,581.08 crore in the preceding quarter. Net NPAs reduced to ₹481.64 crore from ₹697.51 crore during the same period.
#3QWithCNBCTV18 | #RBLBank reports #Q3Results
Net profit at Rs 32.6 cr vs CNBC-TV18 poll of Rs 124.7 cr**#Provisions at Rs 1,188.9 cr vs Rs 618 cr (QoQ) & vs Rs 458 cr (YoY)
**Tax Credit at Rs 225 cr vs Expense of Rs 74 cr pic.twitter.com/IeSpH9WVNd
— CNBC-TV18 (@CNBCTV18Live) January 18, 2025
Provisions for the quarter jumped nearly twofold on year to ₹1,189 crore compared to ₹458 crore in Q3 FY24. The bank on prudent basis made additional provisions of ₹414 crore for its Joint Liability Group (JLG) portfolio, raising NPA coverage for this segment to 85%.
The overall Provision Coverage Ratio, including technical write-offs, stood at 93.46%, while credit cost rose to 139 basis points in Q3 FY25.
Also read: Kotak Mahindra Bank Q3 Results: Net profit rises from last year, NII up 10%
Net Interest Income (NII) grew 2.5% YoY to ₹1,585 crore in Q3 FY25, with Net Interest Margin (NIM) at 4.90%. For the nine-month period, NII rose 10% YoY to ₹4,900 crore, with NIM at 5.19%.
Other income surged 38% YoY to ₹1,073 crore in Q3FY25, while core fee income increased 19% YoY to ₹871 crore. Total deposits grew 15% YoY to ₹1.07 lakh crore, with Current Account Savings Account (CASA) deposits rising 12% to ₹35,022 crore.
The bank also recorded an exceptional net gain of ₹144.15 crore from selling a 10% stake in DAM Capital during its IPO.
CASA ratio stood at 32.8%, while granular deposits (below ₹3 crore) increased 20% YoY to ₹53,719 crore, forming 50.3% of total deposits.
Net advances expanded 13% YoY to ₹90,412 crore, with retail advances growing 19% YoY to ₹55,199 crore. Retail-to-wholesale advances ratio stood at 61:39. Housing loans increased 33% YoY, rural vehicle finance rose 30%, and commercial banking advances grew 21%.
However, the JLG segment declined 4% YoY and 6% QoQ, while credit card advances fell 1% QoQ and personal loans dropped 5% QoQ.
The SMA (Special Mention Accounts) bucket reduced to ₹545 crore in Q3 FY25 from ₹616 crore in the previous quarter, signalling improved asset quality. The bank also reported better recoveries from NPAs and technical write-offs in the unsecured segment.
While the microfinance segment continues to face challenges due to industry-wide over-leverage, RBL Bank expects this issue to correct in the next 2–3 quarters.