While the net profit grew sharply, the bank’s net interest margin 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 (NII), however, grew 7% YoY to Rs 1,671 crore while operating profit rose 11% YoY to Rs 955 crore during the quarter under review.
Read More: RBL Bank Q4 Results: Profit soars 233% YoY to Rs 230 crore
Asset quality improved, with net NPA ratio and gross NPA ratio reducing to 0.39% and 1.45% respectively in Q4 FY26, from 0.55% and 1.88% in the previous quarter (Q3 FY26) and 0.29% and 2.60% in the same quarter last year (Q4 FY25). RBL Bank’s annualised return on assets remained flat sequentially at 0.55%.Along with the Q4 results, RBL Bank announced a dividend of Rs 1 per share with a face value of Rs 10 each. “There has not been any material impact of the West Asia crisis on our business so far,” RBL Bank’s managing director R Subramaniakumar said.
Elara Capital on RBL Bank
Elara Capital maintained its ‘Accumulate’ rating on the shares of RBL Bank, with a target price of Rs 345 apiece. This implies an upside potential of more than 7% from the stock’s previous closing price. The brokerage said that the lender reported a subdued set to results, with weak NII growth and NIM contraction, ET Now reported.
It noted that elevated slippages in credit cards weighed on asset quality. Deposit growth is strong, but the liability franchise is still lagging peers, it added, highlighting that the cost-to-income ratio remains elevated, limiting RoA improvement.While Elara sees RBL Bank at an inflection point, it expects recovery to be gradual as credit cost volatility persists.
RBL Bank shares dropped nearly 5% to hit an intraday low of Rs 306.10 apiece on NSE. The shares of the lender have gained around 5% in one month and more than 64% in one year.
RBL Bank is awaiting the government’s approval for the strategic investment by Emirates NBD, which will transform the lender into a foreign bank subsidiary.
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