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RBL Bank Profit Surges 27%, Credit Card Stress Looms
17 Jul
Summary
- RBL Bank reported a 27% profit increase in the June quarter.
- Net interest income rose 12% due to improving asset quality.
- Credit card portfolio may see stress in the first half of FY27.
RBL Bank has reported a significant 27% year-on-year increase in its net profit for the June quarter, reaching ₹253.7 crore. This growth was primarily fueled by a 12% rise in net interest income to ₹1,654 crore and an improvement in asset quality, evidenced by a lower gross non-performing asset ratio of 1.30%.
Operating efficiency also saw enhancement, with expenses declining 8% and the cost-to-income ratio improving to 64.7%. Net advances grew a healthy 23% year-on-year, supported by strong wholesale lending. Deposits also saw an 11% increase.
Despite the positive financial results, RBL Bank's management has projected near-term challenges. They anticipate transitional stress within the credit card portfolio during the first half of FY27, characterizing it as a temporary phase.
In other developments, the bank has successfully completed a capital raise from Emirates NBD, which is expected to bolster its investment and scaling capabilities. Additionally, RBL Bank's long-term credit rating has been upgraded to AAA.
