RBL Bank Ltd's Q3FY25 Quarter Results
- 22 Jan 2025
Result Summary
- RBL Bank Ltd reported a 3.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 16.2%.
- Its expenses for the quarter were up by 1.8% QoQ and 12.8% YoY.
- The net profit decreased 79.6% QoQ and decreased 80.7% YoY.
- The earnings per share (EPS) of RBL Bank Ltd stood at 0.8 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 4610.47 | 4459.05 | 3968.82 | 3.4% | 16.2% |
Total Expenses | 3599.02 | 3536.22 | 3191.12 | 1.8% | 12.8% |
Provisions & contingencies | 1188.90 | 618.34 | 458.14 | 92.3% | 159.5% |
Profit Before Tax | -177.45 | 304.49 | 319.56 | -158.3% | -155.5% |
Tax | -224.77 | 72.79 | 74.67 | -408.8% | -401.0% |
Profit After Tax | 47.32 | 231.70 | 244.89 | -79.6% | -80.7% |
Earnings Per Share | 0.80 | 3.80 | 4.00 | -78.9% | -80.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
RBL Bank Ltd is a prominent banking institution in India, offering a wide range of financial services. The bank operates in the financial services industry, providing products such as loans, credit cards, savings accounts, and investment opportunities. RBL Bank is known for its focus on retail and corporate banking, with a significant presence in both urban and rural areas across the country. The bank has been actively expanding its digital banking capabilities, aiming to enhance customer experience and operational efficiency. Recent developments include efforts to strengthen its balance sheet and improve asset quality, although specific details on recent major changes were not provided in the data.
Revenue
In the third quarter of FY25, RBL Bank Ltd reported total income of ₹4,610.47 crores. This marks an increase of 3.4% compared to the previous quarter (Q2FY25) and a year-over-year growth of 16.2% from Q3FY24. The bank's revenue growth reflects an upward trend in its income generation capabilities over the past year. The increase in total income can be attributed to various factors, including a rise in interest income, increased fee-based services, or other financial activities, as typically seen in banking operations. The positive QoQ and YoY changes suggest a consistent increase in business volumes or improved pricing strategies.
Profitability
RBL Bank's profitability metrics for Q3FY25 indicate challenges, with a reported Profit Before Tax (PBT) of -₹177.45 crores. This represents a significant decline from a profit of ₹304.49 crores in Q2FY25 and ₹319.56 crores in Q3FY24. The bank's Profit After Tax (PAT) also declined sharply to ₹47.32 crores, a decrease of 79.6% QoQ and 80.7% YoY. The earnings per share (EPS) followed a similar trend, dropping to ₹0.80 from ₹3.80 in the previous quarter and ₹4.00 in the same quarter last year. A substantial increase in provisions and contingencies, which rose by 92.3% QoQ and 159.5% YoY, significantly impacted these profitability metrics. This increase indicates the bank's effort to cushion against potential future risks or losses.
Operating Metrics
Operating expenses for RBL Bank Ltd in Q3FY25 were recorded at ₹3,599.02 crores, reflecting a 1.8% increase from the previous quarter and a 12.8% increase from the same quarter the previous year. The rise in expenses is consistent with the bank's expanded operations and possible investments in technology and infrastructure. Despite the increase in income, the substantial rise in provisions has outweighed the benefits, resulting in negative profitability for the quarter. The tax impact, which is shown as negative due to adjustments or credits, further highlights the complexity of the financial landscape the bank is currently navigating. These operating metrics emphasize the bank's ongoing efforts to balance growth and risk management in a dynamic financial environment.
