RBL Bank posted a 27% rise in first-quarter net profit to 2.54 billion rupees ($26.38 million), led by corporate lending.
Net interest income grew 12% to 16.54 billion rupees. Net advances rose 23% year on year. Wholesale advances, including corporate loans, surged 38%.
Indian credit was strong across the board in the quarter, with corporate borrowing up and demand for personal loans, gold loans, and small-business financing holding firm.
Growth came at a cost. Net interest margin fell to 4.13% from 4.41% in the preceding quarter.
These are RBL’s first results since Emirates NBD completed its 60% stake acquisition last month, one of the largest cross-border deals in Indian finance.
The Herald View: RBL is proving its loan book can grow fast enough to justify Emirates NBD’s bet, but the shrinking margin shows the price of that growth. The real test is whether Gulf capital can turn a mid-tier Indian lender into a corporate banking force without eroding returns further.