RBL Bank Q2 FY26 Performance Review

RBL Bank reported its financial results for the quarter ended September 2025 (Q2 FY26), highlighting a mixed performance with strong Net Interest Income (NII) growth and sequential improvement in asset quality, despite a year-on-year (YoY) decline in net profit. The bank's Net Profit for Q2 FY26 stood at ₹178.5 crore, marking a 20% YoY decline from ₹223 crore posted in the corresponding quarter last year. This figure was also below CNBC-TV18's poll estimate of ₹209 crore. In contrast, Net Interest Income (NII) demonstrated resilience, growing 4% YoY to ₹1,550.7 crore, up from ₹1,490 crore a year ago. This NII figure marginally surpassed market expectations of ₹1,529 crore. A notable highlight is the sequential improvement in asset quality. The Gross Non-Performing Assets (GNPA) ratio improved significantly to 2.32% from 2.78% in the preceding quarter (Q1 FY26). In absolute terms, Gross NPAs decreased to ₹2,377.6 crore from ₹2,685.9 crore. However, the Net NPA ratio saw a slight sequential increase to 0.57% from 0.45%, with absolute Net NPAs rising to ₹572.4 crore from ₹428.8 crore. Provisions for the quarter increased sequentially to ₹499.7 crore from ₹442.3 crore in Q1 FY26, though they remained lower than the ₹618.3 crore recorded in the year-ago period. In summary, RBL Bank's Q2 FY26 reflects sustained core income growth (NII) and successful efforts in cleaning up the balance sheet, as evidenced by the declining GNPA ratio. The dip in net profit is primarily attributable to a combination of factors, including provisioning levels and an increased Net NPA number. The focus remains on leveraging the NII momentum and maintaining the trajectory of asset quality improvement.