New Delhi: The shares of RBL Bank fell by 8 percent on the BSE to Rs 388 on Tuesday, even as the private sector lender reported a sharp increase in its profits for the September quarter.
The bank’s net profit surged 170 percent year-on-year (YoY) to Rs 481.7 crore in Q2 FY27, compared with ₹179 crore in the same period last year.
RBL Bank Share Price
During the day, RBL Bank shares were trading at Rs 393.95 on the NSE, down 5.69 percent. The bank reported healthy growth in net interest income and an improvement in asset quality during the quarter. However, concerns over higher provisions and credit costs weighed on the results.
Brokerage firms remained divided on the stock. Goldman Sachs and CLSA maintained bearish ratings, while Citi and Nuvama retained a positive outlook.
RBL Bank Q2 Results: Key Highlights
RBL Bank’s net interest income (NII) rose 37.4 percent year-on-year to Rs 2,131 crore in the September quarter, compared with Rs 1,551 crore in the corresponding period last year. Asset quality improved during the quarter. Gross non-performing assets (GNPA) declined to 1.02 percent from 1.3 percent in the previous quarter. Net non-performing assets (NNPA) fell to 0.29% from 0.37 percent.
However, provisions increased to Rs 766.5 crore in Q2 FY27, compared with Rs 599.2 crore in the June quarter and Rs 499.7 crore in the same period last year. RBL Bank’s net advances increased 42% year-on-year to Rs 142,314 crore. Retail loans grew 32 percent to Rs 79,465 crore, while wholesale loans surged 56 percent to Rs 62,849 crore.
How Is the Bank’s Balance Sheet Performing?
Growth in secured loans within the retail portfolio reached 52 percent, while unsecured loans increased by 6 percent. Total deposits rose 34 percent year-on-year to Rs 1,56,272 crore. The current account and savings account (CASA) ratio stood at 27.2 percent.
Granular deposits, which refer to deposits of less than Rs 3 crore, increased 16 percent to Rs 68,877 crore. These deposits accounted for 44 percent of the bank’s total deposits. As of September 30, RBL Bank’s total capital adequacy ratio stood at 30.1 percent, compared with 33.3 percent at the end of June. The Common Equity Tier 1 (CET1) ratio declined to 29 percent from 32.2 percent.
The average liquidity coverage ratio (LCR) for the second quarter stood at 148 percent.
RBL Bank Shares: What Do Brokerages Recommend?
Brokerage firms offered mixed views on RBL Bank following its Q2 results. While some analysts highlighted strong NII growth and improved profitability, others raised concerns about rising credit costs, pressure on lending yields, and medium-term returns.
Goldman Sachs
Rating: Sell
Maintained its Sell rating but raised the target price to Rs 310 from Rs 285.
Target price Rs 310
Citi
Rating: Buy
Maintained its Buy rating with a target price of Rs 505. The brokerage noted that RBL Bank delivered a return on assets (RoA) of more than 0.9 percent in Q2 FY27, compared with 0.57 percent in the previous quarter.
Target price: Rs 505
Morgan Stanley
Rating: Equal-weight
Maintained its Equal-weight rating and raised the target price to ₹370 from ₹350.
Target price: Rs 370
Nuvama
Rating: Buy
Maintained its Buy rating and raised the target price to ₹500 from ₹470.
Target price: Rs 500
CLSA
Rating: Reduce
Maintained a cautious stance on RBL Bank, with a target price of ₹310.
Target price: Rs 310
Kwala Intel-Powered Technical Outlook
AI-powered market intelligence platform Kwala Intel has a conditional bullish outlook on RBL Bank shares, provided the stock moves above ₹401.3.
RBL Bank Technical Outlook
According to Kwala Intel, the stock could witness a volatile breakout. However, it also noted that the stock had broken below the ₹393.79 swing level, accompanied by trading volume that was 4.59 times the average.
Kwala Intel stated that the long-entry level in the trading setup lies below the current price. Therefore, the setup should be viewed as a trigger map rather than a recommendation to buy the stock at its prevailing price.
Kwala Intel helps users interpret real-time market data to make informed trading decisions.