RBLBANK - RBL Bank

📊 NSE: RBLBANK 🏢 Banks - Private Sector 📅 Last Updated: 12/14/2025 11:42

💰 Financial Performance

Revenue Growth by Segment

Retail advances (60% of book) grew 10% YoY to INR 60,131 Cr, with secured retail growing 30% YoY. Wholesale advances (40% of book) grew 14% YoY to INR 40,398 Cr. Core Fee Income grew 17% QoQ to INR 926 Cr in Q2 FY26.

Geographic Revenue Split

75% of the 564-branch network is concentrated in metro cities, with historical operations primarily in Maharashtra and Karnataka.

Profitability Margins

Net Interest Margin (NIM) was 4.51% in Q2 FY26. Return on Total Assets (ROTA) was 0.50% in H1 FY26, down from 0.92% in FY24 due to moderated unsecured growth.

EBITDA Margin

Operating Profit for Q2 FY26 grew 4% QoQ to INR 728 Cr. Net Profit for Q2 FY26 was INR 179 Cr.

Capital Expenditure

Planned capital infusion of approximately INR 29,253 Cr (US$ 3 billion) from Emirates NBD to increase net worth from INR 15,356 Cr to over INR 44,000 Cr.

Credit Rating & Borrowing

CareEdge Ratings: Stable. Capital Adequacy Ratio (CAR) stood at 15.02% as of Sept 30, 2025. Cost of deposits is approximately 1% (100 bps) higher than large private sector peers.

⚙️ Operational Drivers

Raw Materials

Not applicable for banking sector; primary input is cost of deposits (Total business of INR 2,17,196 Cr).

Import Sources

Not applicable for banking; strategic capital infusion of US$ 3 billion sourced from UAE (Emirates NBD).

Key Suppliers

Not applicable for banking; capital provided by Emirates NBD (60% owner post-deal).

Capacity Expansion

Current network includes 564 branches and 1,347 business correspondent branches. Planned expansion includes scaling existing MSME/BBG segments and adding NR/cross-border trade segments.

Raw Material Costs

Cost of funds gap of ~1% vs large peers; expected to narrow following rating upgrades and capital infusion.

Manufacturing Efficiency

Branch-led origination now accounts for 60% of leads; 100% of organic gold business originates through branches to keep acquisition costs low.

Logistics & Distribution

Branch-led distribution model used to scale retail assets and granular liabilities.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Achieving 30%+ growth through a US$ 3 billion capital infusion from Emirates NBD, enabling expansion into NR business, cross-border payments, and India-Middle East trade finance. The bank will scale its MSME (BBG) segment, which recently doubled, and its secured retail book (growing at 30% YoY) while leveraging 564 branches for 60% of lead generation.

Products & Services

Credit cards, personal loans, housing loans, loans against property (LAP), rural vehicle finance, MSME working capital, tractor finance, and microfinance (JLG).

Brand Portfolio

RBL Bank, RBL FinServe Limited.

New Products/Services

NR business, cross-border payments, and trade finance corridor between India and Middle East; expected to diversify income streams significantly post-ENBD deal.

Market Expansion

Expansion into Middle East-India trade corridor; leveraging 564 existing branches with 75% in metro cities.

Market Share & Ranking

Mid-sized private sector bank; total business book of INR 2,17,196 Cr.

Strategic Alliances

Emirates NBD (60% stake acquisition and merger of Indian branches).

🌍 External Factors

Industry Trends

The industry is shifting towards secured retail lending; RBL is positioning itself by growing secured retail at 30% YoY while de-growing unsecured retail by 9% YoY to manage asset quality.