RBL Bank reported a 46% year-on-year fall in net profit to Rs 200 crore for the June 2025 quarter, as lower core income and narrowing interest margins weighed on its bottom line. The private sector lender had posted a net profit of Rs 372 crore in the same quarter last year and Rs 69 crore in the preceding March 2025 quarter.The bank’s net interest income dropped 13% to Rs 1,481 crore, hit by a 117 basis point contraction in net interest margin (NIM) to 4.5%, compared with 5.67% a year earlier. This came despite a 9% growth in its loan book, PTI reported.However, a 33% rise in other income to Rs 1,069 crore provided partial support to earnings.Managing Director and CEO R Subramaniakumar attributed the performance to a deliberate strategy to scale down the high-margin but high-risk unsecured lending portfolio, which was reduced by 10% during the quarter. He said the bank is focusing more on secured retail loans, which grew at 23%.Despite the weak quarter, the bank maintained its full-year credit growth guidance at 14–15%. Subramaniakumar said slippages in the unsecured portfolio are showing signs of improvement, and growth in the segment is expected to resume in the second half of FY26 once performance stabilises.A senior bank executive added that the bank expects NIMs to have bottomed out, with “reasonable improvement” likely due to a better loan mix and potential deposit rate reductions.Slippages during the quarter stood at Rs 1,060 crore, including two small business banking accounts that may revert to standard classification soon, the bank said.The gross non-performing asset (GNPA) ratio rose to 2.78% as of June 30, up from 2.60% in the previous quarter. Total provisions increased 21% year-on-year to Rs 442 crore, compared with Rs 366 crore a year earlier.The bank’s capital adequacy ratio stood at 15.59%, with a Common Equity Tier-1 (CET1) ratio of 14.05%.