RBL Financial institution Q1 outcomes: Web revenue declines 46% to Rs 200 crore; NII drops 13% to 1481 crore

RBL Financial institution reported a 46% year-on-year fall in web revenue to Rs 200 crore for the June 2025 quarter, as decrease core revenue and narrowing curiosity margins weighed on its backside line. The non-public sector lender had posted a web revenue of Rs 372 crore in the identical quarter final 12 months and Rs 69 crore within the previous March 2025 quarter.The financial institution’s web curiosity revenue dropped 13% to Rs 1,481 crore, hit by a 117 foundation level contraction in web curiosity margin (NIM) to 4.5%, in contrast with 5.67% a 12 months earlier. This got here regardless of a 9% progress in its mortgage guide, PTI reported.Nonetheless, a 33% rise in different revenue to Rs 1,069 crore offered partial assist to earnings.Managing Director and CEO R Subramaniakumar attributed the efficiency to a deliberate technique to scale down the high-margin however high-risk unsecured lending portfolio, which was lowered by 10% in the course of the quarter. He stated the financial institution is focusing extra on secured retail loans, which grew at 23%.Regardless of the weak quarter, the financial institution maintained its full-year credit score progress steerage at 14–15%. Subramaniakumar stated slippages within the unsecured portfolio are displaying indicators of enchancment, and progress within the phase is predicted to renew within the second half of FY26 as soon as efficiency stabilises.A senior financial institution govt added that the financial institution expects NIMs to have bottomed out, with “affordable enchancment” seemingly as a result of a greater mortgage combine and potential deposit price reductions.Slippages in the course of the quarter stood at Rs 1,060 crore, together with two small enterprise banking accounts that will revert to straightforward classification quickly, the financial institution stated.The gross non-performing asset (GNPA) ratio rose to 2.78% as of June 30, up from 2.60% within the earlier quarter. Whole provisions elevated 21% year-on-year to Rs 442 crore, in contrast with Rs 366 crore a 12 months earlier.The financial institution’s capital adequacy ratio stood at 15.59%, with a Widespread Fairness Tier-1 (CET1) ratio of 14.05%.