RBL Bank‘s net profit surged 234% year-on-year to Rs 229 crore in fourth quarter of FY26, up from Rs 68.7 crore a year earlier, driven by business growth and reduced provisions. The bank has also recommended a final dividend of Rs 1 per equity share (15%) for the financial year ended March 31, subject to shareholder approval. 

Net advances grew 23% y-o-y to Rs 1.14 lakh crore as of March 31, while total deposits grew 25% y-o-y to Rs 1.39 lakh crore. Meanwhile, the provisions were down 14% y-o-y to Rs 678.32 crore, aiding the bottomline.   

Regarding the West-Asia war, the bank said it has not currently seen any material impact on portfolio. “That said we remain cautious and selective across certain industry segments within wholesale and small business lending and we will continue to closely monitor how the situation evolves,” the bank said in the post-earnings media call. 

For the full year, the bank reported a net profit of Rs 822 crore, up 18% from the previous year. 

The lender reported a 7% rise in total income to Rs 4,789 crore during the quarter. The bank’s net interest income (NII) grew 7% y-o-y to Rs 1,671 crore. On a sequential basis, it rose just 1%. Net interest margin (NIM) moderated to 4.41% from 4.63% in the previous quarter. 

Within the advances, secured retail advances grew 36% y-o-y and wholesale advances rose 28%, maintaining a retail: wholesale mix at 59:41. The bank’s credit-deposit ratio stood at 82.2%, it said.  

The bank’s current account, savings account (CASA) deposits grew 23% y-o-y to Rs 46,723 crore in Q4 and CASA ratio stood at 33.6%. 

“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,” R Subramaniakumar, MD & CEO, RBL Bank, said in the press release. 

During the quarter, the bank received approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) for the investment by Emirates NBD, and the transaction is now in its final stages of closure, the bank said. The deal will likely complete this or next month, bank’s management said in the call. In October, Emirates NBD announced purchase of a 60% stake in RBL Bank for Rs 26,853 crore.

The asset quality of the bank improved during the quarter. Gross non-performing assets (GNPA) ratio improved to 1.45% from 1.88% in the previous quarter, while net NPA ratio fell to 0.39% from 0.55%.