RBL Bank, the Indian subsidiary of Emirates NBD, on Friday reported a 27 per cent year-on-year (Y-o-Y) jump in net profit to Rs 254 crore for the April-June quarter of FY27 (Q1FY27), supported by growth in net interest income (NII), which was backed by strong growth in advances.
The bank has already garnered $150 million under the FCNR(B) scheme.
NII — the difference between interest earned and interest expended — rose 12 per cent Y-o-Y to Rs 1,654 crore in the quarter. However, the bank’s other income fell 10 per cent Y-o-Y to Rs 959 crore due to lower treasury income.
The bank highlighted that it is working with Emirates NBD in the Middle East. It has also conducted a detailed internal analysis and is working on mobilising retail FCNR(B) deposits.
According to R. Subramaniakumar, MD & CEO, RBL Bank, the lender has garnered nearly $150 million in FCNR(B) deposits. However, he did not disclose the leverage.
Also, following Emirates NBD’s acquisition of a 60 per cent stake, RBL Bank has become its subsidiary and said the opportunities for growth have expanded significantly.
“We now have greater scope to expand geographically and leverage products and services across different markets. We can also benefit from the parent group’s expertise in improving our products and services. Overall, this strengthens our ability to improve both the balance sheet and our business,” Subramaniakumar added.
Following the Rs 26,000 crore capital infusion from Emirates NBD, RBL Bank’s capital adequacy ratio (CRAR) improved to 33.3 per cent in the quarter from 15.6 per cent in Q1FY26. The bank plans to repay high-cost borrowings and deposits with these funds immediately, apart from venturing into new products and areas.
“The bank has retired a combined Rs 10,500 crore of borrowings and deposits so far. Some additional retirements are also in the pipeline, and this will remain a dynamic situation,” the bank’s management said.
The bank’s net interest margin (NIM) fell to 4.12 per cent in the quarter from 4.50 per cent in Q1FY26. It stood at 4.41 per cent in Q4FY26. The bank said it is targeting a margin in the range of 4.80-4.90 per cent, although it did not provide a timeline.
Deposits grew 10.7 per cent Y-o-Y to Rs 1.25 trillion as of June 30, 2026, from Rs 1.13 trillion a year earlier. The average share of the low-cost current account savings account (CASA) ratio stood at 25.2 per cent, compared with 28 per cent in Q1FY26.
Gross advances grew 23 per cent Y-o-Y to Rs 1.16 trillion as of June 30, 2026, from Rs 94,431 crore a year earlier. Of this, retail advances grew 13 per cent Y-o-Y to Rs 64,196 crore. Wholesale advances rose 38 per cent Y-o-Y to Rs 52,027 crore, while commercial banking advances grew 36 per cent Y-o-Y.
“We have been growing in the range of around 20-25 per cent, which will be the basis on which we will grow. When the opportunity comes, we will definitely look for better,” Subramaniakumar said. He added that, following the ratings upgrade, the bank will enter corporate segments that fit its strategy and policy.
Asset quality of the lender improved with Gross Non-Performing Assets (NPA) Ratio at 1.30 per cent as against 1.45 per cent as of March 31, 2026 and Net NPA Ratio stood at 0.37 per cent as of June 30, 2026 in comparison to 0.39 per cent as of March 31, 2026. The net non-performing asset (NNPA) ratio stood at 0.37 per cent, compared with 0.39 per cent in the corresponding period last year.
