RBL Bank’s near-threefold jump in fiscal second-quarter net profit was supported by a 42% rise in loan growth and a mop up of $3.4 billion in FCNR(B) deposits under the Reserve Bank of India’s concessional swap facility.

Majority-owned by Emirates NBD, the bank’s net profit climbed to Rs 482 crore for the July-September months, up from Rs 179 crore in the same quarter last year.

Net interest income (NII) rose 37.4% year-on-year to Rs 2,131 crore in the quarter ended September. 

Net interest margin (NIM) widened to 4.61%, compared with 4.13% in the preceding three months and 4.51% a year ago.

NIM, however, is expected to narrow in the December quarter due to foreign currency non-resident (Bank), or FCNR(B), deposits, which are parked in investments at rates lower than 6.75% at which they were raised. The NIMs would expand subsequently when the bank is able to push the funds through for lending.

The FCNR inflows will also be used to retire the bank’s bulk deposits over the next three to four months, the management said.

On the asset quality front, the bank’s gross non-performing assets (NPA) fell to 1.02% from 1.3% in Q1 and 2.32% in Q2 of FY26.

Net NPA declined to 0.29% compared to 0.37% a quarter ago and 0.57% a year ago.

The bank’s net advances rose 42% YoY to Rs 1.42 lakh crore. While retail loans grew 32% to Rs 79,465 crore, wholesale advances rose 56% to Rs 62,849 crore.

Total deposits grew 34% YoY to Rs 1.56 lakh crore. But without FCNR inflows, the bank’s deposit growth in Q2 was 6%.