RBL Bank’s Share Price Jumps 6% Post Q4 FY25 Earnings; Know What’s Driving the Rally

RBL Bank shares saw a notable 5.67% rise in its share price, reaching ₹198.45 at 09:59 AM on the NSE on April 28, 2025, up ₹10.65 from the previous close of ₹187.80. The stock opened at ₹192.65 and hit a high of ₹200.50, with a low of ₹190.70 during the trading session.

Q4 FY25 Stress Eases in Key Portfolios

One of the key reasons for the market’s positive outlook on RBL Bank’s Q4 results was the easing stress in two crucial portfolios: JLG and credit card segments, as per news reports.

The slippages in the quarter were 4.7%, which came in better than expected, signaling a lower-than-anticipated increase in non-performing loans.

The SMA (Special Mention Account) pool in the JLG segment also showed signs of improvement, contributing to the positive sentiment.

Furthermore, the bank showed caution and prudence by increasing provisions, ensuring it covered 100% of JLG GNPAs (Gross Non-Performing Assets) and 75% of the SMA pool, along with adequate provisions for its credit card portfolio.

Guidance for Future Growth

Looking ahead, RBL Bank is guiding for a 16-17% loan growth by FY27E, which is a positive signal for investors. This growth estimate suggests that the bank is confident in its ability to expand its loan book and increase its market share in the coming years.

Despite the profit decline in Q4, RBL Bank has set expectations for net interest margins (NIMs) to remain range-bound at 5.3% during FY26-27E. This is expected to be supported by a cut in deposit rates, a 45% proportion of fixed-rate deposits, and lower interest reversals, all of which could bolster the bank’s NIMs in the future.

Q4 FY25 Decline in the Net Profit

RBL Bank’s net profit for the March quarter plunged by a staggering 80%, coming in at ₹68.7 crore. While this dramatic drop in profit is certainly concerning, it was partially offset by an increase in other income, which stood at ₹1,000 crore for the quarter.

Additionally, the figures were relatively better compared to the December quarter, with the bank reporting lower provisions during the quarter.

Despite the sharp decline in net profit, the market’s positive reaction can be attributed to other factors that showed improvement in the bank’s performance, especially in the context of its loan growth and asset quality.

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Conclusion

RBL Bank’s share price surge by 5.67% on April 28, 2025, following its Q4 FY25 results is driven by a combination of easing stress in key portfolios, improved asset quality, and positive future growth projections.

Despite a significant drop in net profit, the bank’s strategic provisions, particularly in its JLG and credit card segments, and its prudent approach to managing NPAs have bolstered investor confidence.

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