The shares of RBL Bank on Monday (October 21) nosedived by over 14 per cent during the intra-day trading session. This decline in the share price of the company was followed after the lender posted a 24 per cent decline in net profit for the second quarter of FY25 (Q2FY25).

As per the regulatory filing released by the company on October 19, the bank reported a net profit of Rs 223 crore, compared to Rs 294 crore in the same period last year.

As of 12:28 pm IST, the company's shares were trading at Rs 175.80 apiece, down by 14.35 per cent.

The shares of the bank touched a 52-week low of Rs 176.5 during intraday trading on the NSE, marking a steep decline of 14.01 per cent. The stock opened with a loss of nearly 6 per cent.

Share performance

RBL Bank’s standalone total income for the September quarter stood at Rs 4,458.29 crore, compared to Rs 3,712.39 crore in the same period last year. The total expenses increased to Rs 3,548.40 crore, up from Rs 2,981.41 crore year-on-year (YoY). The bank reported a net profit of Rs 222.52 crore, a decline from Rs 294.08 crore in the year-ago quarter.

Similarly, on the consolidated basis, the bank's total income rose to Rs 4,459.05 crore, compared to Rs 3,720.57 crore in the same quarter last year.

Earnings Q2FY25

The consolidated total expenses came in at Rs 3,536.22 crore, higher than the Rs 2,955.20 crore reported a year ago. The bank’s profit after tax (PAT) also saw a decline, with Rs 231.70 crore reported in the Q2, compared to Rs 331.08 crore in the corresponding quarter last year.

Despite these challenges, the bank's gross non-performing asset (NPA) ratio improved slightly, decreasing by 0.25 per cent to 2.88 per cent.

Slower Net Interest Income Growth

While RBL Bank posted a 15 per cent growth in advances, the growth in core net interest income (NII) was slower at 9 per cent, amounting to Rs 1,615 crore in Q2.

Deposits and Advances

RBL Bank's deposits grew by 20 per cent YoY, reaching Rs 107,959 crore by the end of Q2FY25.

The bank’s Current Account and Savings Account (CASA) deposits also saw a 13 per cent YoY rise to Rs 36,224 crore, a CASA ratio of 33.6 per cent, as per the BSE filing.