Asset quality improved during the quarter, with the gross NPA ratio declining to 1.88% as on December 31, 2025 from 2.32% at end-September 2025. The net NPA ratio also declined to 0.55% from 0.57% over the same period. The coverage ratio of the provisions, including technical depreciation, was a healthy 93.2%.
Advances increased by 14% YoY and 3% QoQ to Rs. 103,086 crore, with the retail-wholesale mix at 59:41. Retail advances increased 10% YoY and 1% QoQ to Rs. 60,611 crore as the bank lost excess liquidity in IBPC.
Within retail, secured advances increased by 24% YoY and 1% QoQ, supported by a reduction in outstanding IBPC of Rs. 4,500 crore to Rs. 1,500 crore, while unsecured retail advances fell 5% YoY but grew 1% sequentially. Wholesale advances increased 21% YoY and 5% QoQ to Rs. 42,475 crore, led by commercial banks, which grew 30% YoY and 7% QoQ.
Total deposits increased by 12% YoY and 3% QoQ to Rs. 119,721 crore. CASA deposits grew 6% year-on-year to Rs. 36,972 crore, with the CASA ratio being 30.9%.
RBL Bank’s key ratios showed a mixed trend in the December quarter. Net interest margin declined from 4.90% in Q3FY25 to 4.63% in Q3FY26, while cost-to-income ratio increased from 62.51% to 66.30%. Return on assets improved from 0.09% to 0.55%, and return on equity increased from 0.84% to 5.25%. On the asset quality front, gross NPA fell to 1.88% in Q3FY26 from 2.92% a year earlier, while net NPA rose to 0.55% from 0.53%. Provision coverage ratio, including technical depreciation, stood at 93.21% compared to 93.46% in Q3FY25, while PCR fell to 71.09% from 82.17%.
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