RBL Bank reported a more than threefold increase in net profit for the January-March quarter, driven by business expansion, improved asset quality, and lower provisioning. The private sector lender’s net profit rose to ₹230 crore in the fourth quarter, compared with ₹69 crore in the same period a year ago.

For the full fiscal year 2026, the bank posted an 18% increase in net profit to ₹822 crore. The board has proposed a dividend of ₹1 per share, representing a 10% payout based on the face value of ₹10 per share.

Despite the profit growth, the bank’s net interest margin (NIM) declined to 4.41% in the quarter, marking the lowest level in five quarters. This compares with 4.63% in the previous quarter and 4.89% in the corresponding quarter last year. The reduction in NIM was attributed to a 133 basis point drop in the yield on advances, which offset a 61 basis point increase in the cost of deposits.

RBL Bank’s net interest income rose 7% year-on-year to ₹1,671 crore, while other income also increased by 7% to ₹1,069 crore. The lender’s operating profit advanced 11% to ₹955 crore during the quarter.

The bank’s managing director, R Subramaniakumar, noted that there has been no significant impact on the business from the ongoing crisis in West Asia to date.

RBL Bank is currently involved in an acquisition deal with Emirates NBD, which is set to acquire a majority stake of up to 74% in the lender for approximately $3 billion.