RBL Bank shares drop 3% as GST authorities conduct searches at lender's offices; check details

At 9:45 AM, the stock was trading 1% lower at ₹153.65 on the NSE.

For the quarter ended December 31, 2025 (Q3 FY25), RBL Bank's net profit plummeted to ₹47 crore from ₹245 crore in the year-ago period as the microloan portfolio came to bite.

The private sector lender, which has had a difficult few quarters due to higher credit costs, reported a net profit of ₹231 crore in the preceding September quarter.

Its core net interest income grew by 3% to ₹1,585 crore, while the other income grew 38% to ₹1,073 crore aided by a stake sale in the NBFC DAM Capital.

The bank's chief executive and managing director R Subramaniakumar said the net interest margin declined to 4.90% from 5.52% in the year-ago period, and 0.40% of the impact came from the microfinance exposures.

The slippages on the MFI book zoomed to ₹535 crore as against the usual ₹125-₹150 crore range due to a host of issues in the history including over-leverage of borrowers.

There are some other smaller problems as well like a nationwide campaign which has led to a propensity to not pay up among the borrowers, and also some localised issues like a community in two Karnataka districts being reluctant to pay the dues, Subramaniakumar said.

Subramaniakumar, however, said that the situation is improving if one were to go by the collection efficiencies which climbed up to the 97% figure in December after being one percentage point lower in the first two months of the quarter.