RBL Bank unveiled its financial performance for the third quarter of fiscal year 2026 on Saturday. The announcement covered the period ending December 31, 2025.
Profit and Income Performance
The bank posted a net profit of ₹214 crore for the quarter. This figure was affected by one-time pre-tax expenses totaling ₹32 crore. These costs arose from changes to wage definitions under the New Labour Codes, which took effect from November 21, 2025.
Net interest income showed solid growth. It increased by 5% compared to the same quarter last year. Sequentially, it rose 7% to reach ₹1,657 crore. A healthy net interest margin of 4.63% supported this growth.
Other income, excluding a one-off gain from a strategic equity sale in the previous year's third quarter, climbed 13%. This growth was consistent both year-on-year and quarter-on-quarter, reaching ₹1,050 crore. Core fee income remained strong too, growing 10% year-on-year and 3% sequentially to ₹959 crore.
Asset Quality and Business Growth
Improving Asset Metrics
RBL Bank reported better asset quality this quarter. Net non-performing assets decreased to ₹567 crore from ₹572.4 crore in the previous quarter. The net NPA ratio also improved slightly, dropping to 0.55% from 0.57%.
Gross NPAs saw a significant decline. They fell to ₹1,961.5 crore from ₹2,377.6 crore in the preceding quarter. Consequently, the gross NPA ratio narrowed to 1.88% from 2.32% sequentially.
Deposits and Advances Expansion
Total deposits stood at ₹1.19 lakh crore as of December 31, 2025. This represents a 12% increase from ₹1.06 lakh crore a year earlier. Deposits also grew 3% over the ₹1.16 lakh crore recorded in the prior quarter.
Gross advances expanded robustly. They grew 13% year-on-year to ₹1.04 lakh crore from ₹92,631 crore. Sequentially, advances were up 2% from ₹1.02 lakh crore.
Management Commentary
R Subramaniakumar, Managing Director and CEO of RBL Bank, commented on the results. He stated that Q3 FY26 represented another quarter of stable and consistent operational performance for the bank.
"We continued to deliver strong growth in our focus areas," he said. "Secured retail advances and commercial banking drove asset side expansion while granular deposits supported the liability side. Collection efficiency in our JLG business has materially improved and disbursal run-rates are now close to normalized levels."
He emphasized that the bank's core operating engine remains robust. It is anchored in disciplined execution, a profitable balance sheet, and sharper cross-selling to existing customers.
Subramaniakumar also noted significant corporate developments during the quarter. The bank received shareholder approval for a capital infusion by Emirates NBD PJSC. Shareholders also approved the amalgamation of Emirates NBD's Indian branches with RBL Bank. The bank is now awaiting regulatory approvals for these transactions.
The bank's share price closed 4% higher at ₹324.50 on Friday, just before the results announcement. This positive market movement reflected investor anticipation of the quarterly performance.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
