RBL Bank shares slide despite 170% YoY profit growth
Net interest income (NII) rose 37% YoY and 29% QoQ to Rs 2,131 crore in Q2 FY27 from Rs 1,551 crore in Q2 FY26 and Rs 1,654 crore in Q1 FY27. Net interest margin (NIM) improved to 4.61% from 4.51% in Q2 FY26 and 4.13% in Q1 FY27.
Profit before tax stood at Rs 629.6 crore in Q2 FY27, up 95% vs previous quarter and 175% vs year-ago quarter.
Operating expenses increased 3% YoY and 7% QoQ to Rs 1,812 crore in Q2 FY27 from Rs 1,755 crore in Q2 FY26 and Rs 1,691 crore in Q1 FY27. Credit cost rose 53% YoY and 29% QoQ to Rs 771 crore from Rs 503 crore in Q2 FY26 and Rs 597 crore in Q1 FY27. The credit cost ratio increased to 0.63% from 0.54% in both the year-ago and previous quarters.
Operating profit increased 92% YoY and 51% QoQ to Rs 1,396 crore in Q2 FY27 from Rs 728 crore in Q2 FY26 and Rs 923 crore in Q1 FY27. The cost-to-income ratio improved to 56.48% from 70.67% in Q2 FY26 and 64.70% in Q1 FY27.
Total interest income rose 23% YoY and 13% QoQ to Rs 4,322.1 crore in Q2 FY27 from Rs 3,507.5 crore in Q2 FY26 and Rs 3,840.2 crore in Q1 FY27. Interest expenses increased 12% YoY to Rs 2,191.2 crore from Rs 1,956.8 crore in Q2 FY26 and remained broadly unchanged QoQ from Rs 2,185.8 crore in Q1 FY27.
Advances stood at Rs 1,42,314 crore as of 30 September 2026, up 42% YoY and 22% QoQ. Retail advances rose 32% YoY and 24% QoQ to Rs 79,465 crore, while secured retail advances increased 52% YoY and 42% QoQ to Rs 51,933 crore.
Deposits increased 34% YoY and 25% QoQ to Rs 1,56,272 crore. Granular deposits rose 16% YoY and 5% QoQ to Rs 68,877 crore, while CASA deposits increased 14% YoY and 17% QoQ to Rs 42,526 crore. Investments rose 49% YoY and 14% QoQ to Rs 42,928 crore.
R Subramaniakumar, MD and CEO of RBL Bank, said the quarter reflected the strength of the bank?s franchise, with growth across assets and liabilities. He added that significant FCNR deposit mobilisation had strengthened the bank?s funding profile and provided additional flexibility to support future growth.
Asset quality improved, with gross non-performing assets (GNPA) declining to 1.02% in Q2 FY27 from 2.32% in Q2 FY26 and 1.30% in Q1 FY27. Net non-performing assets (NNPA) fell to 0.29% from 0.57% in Q2 FY26 and 0.37% in Q1 FY27. The provision coverage ratio (PCR), including technical write-offs, increased to 95.31% from 92.74% a year earlier and 94.94% in the previous quarter.
Return on assets improved to 0.92% from 0.48% in Q2 FY26 and 0.57% in Q1 FY27. Return on equity stood at 4.43%, compared with 4.44% in Q2 FY26 and 4.01% in Q1 FY27.
RBL Bank is a private sector bank in India offering retail, corporate and commercial banking services. Its business includes retail lending, secured loans, deposits and other banking and financial products.
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