The bank, where Emirates NBD is set to acquire a majority stake up to 74% for approximately $3 billion, saw its annual net profit rise 18% year-on-year at Rs 822 crore.
RBL board proposed a dividend of Re 1 per share having Rs 10 face value, making it 10% dividend for FY26.
The bank’s net interest margin however fell to 4.41%, the lowest in the past five quarters. NIM was 4.63% in the preceding quarter while it was 4.89% in the year-ago period.
Net interest income grew 7% year-on-year at Rs 1671 crore while other income stood 7% higher at Rs 1069 crore. Its operating profit grew 11% year-on-year at Rs 955 crore.
“There has not been any material impact of the West Asia crisis on our business so far,” managing director R Subramaniakumar said.”We delivered growth that meaningfully outpaced normalised industry trends, led by sharp momentum in granular retail advances and sustained strengthening of our granular deposit franchise,” he said.The bank’s net advances grew 23% year-on-year to Rs 1.14 lakh crore with retail segment contributing 59% of it while it saw contraction in credit card receivables and personal loan portfolio. Its total deposits grew 25% to Rs 1.39 lakh crore.
Its asset quality improved with gross non-performing assets ratio falling to 1.45% at the end of March from 1.88% three months prior, helped by Rs 911 crore of technically written-off loans during the quarter. Net NPA ratio was at 0.39% against 0.55% for the same period. The quarterly provisions were lower at Rs 678 crore as compared with Rs 785 crore in the year-ago period when the bank had made accelerated provisions to cover the credit risks arising from its microfinance portfolio.
The MD said that the share of the lender’s unsecured loans reduced to 24% from 28% a year back and the bank would like to maintain it between 20 and 25%.
During the quarter, It opened 23 branches, taking the total tally to 603.
“This expanded footprint strengthens our ability to deepen customer relationships, enhance sourcing capabilities, and support growth across our retail businesses as we enter the new financial year,” the MD said.
On the strategic investment by Emirates NBD which will transform RBL into a foreign bank subsidiary, approvals from the Reserve Bank of India and Competition Commission of India are already in place while RBL is awaiting the government’s approval, required for the foreign direct investment.
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