RBL Bank's Quarterly Profit Plummets Amid Rising Provisions

RBL Bank reported an 81% drop in net profit for Q4 FY25 due to increased provisions. The bank's income rose, with interest income improving and asset quality showing reduced NPAs. Provisions surged to Rs 785 crore, significantly affecting profitability. The board proposed a Rs 1 per share dividend.

On Friday, RBL Bank announced an 81 percent decline in net profit to Rs 69 crore for the fourth quarter of FY25, primarily due to heightened provisions. In the comparable period a year ago, the bank posted a net profit of Rs 353 crore.

RBL Bank's total income for the quarter increased to Rs 4,476 crore, up from Rs 4,215 crore in the previous year, outlined in its regulatory filing. Interest income also saw a rise, reaching Rs 3,476 crore compared to Rs 3,339 crore in the same quarter last year.

Despite challenges, the bank's asset quality improved with Gross Non-Performing Assets (NPAs) reduced to 2.6 percent. However, provisions and contingencies soared to Rs 785 crore, up from Rs 414 crore. The board has recommended a dividend of Rs 1 per share for the fiscal year ending March 31, 2025.

(With inputs from agencies.)