RBL Bank shares fell by up to 8% on October 13, 2026, even as the private sector bank reported a 170% year-on-year (YoY) rise in its net profit to Rs 481.7 crore for the second quarter of FY27. In the same quarter last year, the RBL Bank had posted a net profit of Rs 179 crore.

Key Highlights

• RBL Bank shares fell 8% despite net profit rising 170% year-on-year to Rs 481.7 crore in Q2.
• Higher provisions and credit costs offset stronger interest income and improved asset quality in Q2.

During the session, the RBL bank share price declined Rs 388 to Rs 388 on the BSE. Its share price was at Rs 393.95 on the NSE, down 5.69% from the day's opening price.

However, provisions and worries about credit costs weighed down investor confidence, despite the positive developments in net interest income (NII) and asset quality. Lender's outlook was also met with mixed reviews by brokerages, as some noted its earnings enhancement while others voiced concerns on lending yields, deposit growth and medium-term returns.

RBL Bank Q2 Results: Key Financial Highlights

Net interest income (NII) of RBL Bank also rose 37.4% YoY to Rs 2,131 crore in Q2 FY27, from Rs 1,551 crore in the previous year's same quarter.

The quality of assets is improving in the September quarter. Gross non-performing assets (GNPA) fell to 1.02%, down from 1.3% in the previous quarter and net non-performing assets (NNPA) dropped to 0.29%, from 0.37% the previous quarter.

But provisions increased to Rs 766.5 crore from Rs 599.2 crore in the June quarter and Rs 499.7 crore in the same period last year. Although profitability is improving, the rising cost of provisions and credit continues to be an issue.

RBL Bank Loan Growth and Deposit Trends

The net advances of the bank increased by 42% YoY to Rs 1,42,314 crore. Retail advances rose by 32 per cent to Rs 79,465 crore and wholesale advances by 56 per cent to Rs 62,849 crore.

The secured advances increased 52% with an increase of 6% in unsecured advances in the retail portfolio.

Total deposits rose 34% YoY to Rs 1,56,272 crore. The current account and saving account (CASA) ratio was 27.2%. Granular deposits, which include deposits less than Rs 3 crore, rose 16% to Rs 68,877 crore, or 44 per cent of the total deposits.

As of September 30, total capital adequacy ratio of RBL Bank was 30.1%, whereas it was 33.3% at the end of June. The Common Equity Tier 1 (CET1) ratio declined to 29% from 32.2%. Meanwhile, the average liquidity coverage ratio (LCR) for the quarter was 148%.

Also Read: ICICI Prudential AMC FY27 Q2 Net Profit Climbs 6.1% to Rs 889 Crore

RBL Bank Share Price: What Are Brokerages Saying?

RBL Bank has left brokerages split on its second quarter (FY27) results. Some highlighted net interest income, margins and increased profitability while others identified credit costs, yield pressures on loans and muted deposit growth.

Goldman Sachs: Sell, Target Price Rs 310

Goldman Sachs also kept its ‘Sell’ rating on RBL Bank, but also increased its price estimate to Rs 310 from its earlier estimate of Rs 285.

The brokerage has thus updated its forecasts to the higher side due to good foreign currency non-resident (FCNR) flows. But it said retail loan growth was subdued, it said.

Goldman Sachs also noted that after stripping out deposits with FCNR-B, the quarter-on-quarter rise in deposits was 1%. The equity capital raise helped drive Net interest margins (NIMs) 48 basis points higher sequentially. The brokerage also pointed to mixed asset quality trends and the credit costs' improvement, which was slower than expected.

Citi: Buy, Target Price Rs 505

Citi has kept its ‘Buy’ rating on the stock with a target price of Rs 505. It observed that the return on assets (RoA) of RBL Bank in Q2 FY27 was higher at 0.9% than in the previous quarter when it was 0.57%.

NIMs increased 48 basis points from the previous quarter to 4.61%, which contributed a 37% YoY and 29% sequential rise in NII. Non-interest income grew by 12% QoQ, but operating expenses grew slightly, resulting in pre-provision operating profit (PPOP) growing by more than 50% sequentially.

Credit costs rose to 2.52% from 2.16% in the prior quarter as a result of normal asset provisions and ongoing pressure on the credit card portfolio. Citi anticipates that credit card expense would normalize in second half of FY27, and is projecting more than 35% growth in earnings for FY27 and double-digit growth in FY28 and FY29.

Morgan Stanley: Equal-weight, Target Price Rs 370

Morgan Stanley has kept its ‘Equal-weight' rating on RBL Bank and also hiked its target price from Rs 350 to Rs 370.

Nuvama: Buy, Target Price Rs 500

Nuvama maintained its ‘Buy’ rating and increased its target price to Rs 500 from Rs 470, indicating a positive view of the bank’s outlook.

CLSA: Reduce, Target Price Rs 310

CLSA retained its ‘Reduce’ rating and target price of Rs 310. The brokerage said NII and PPOP were broadly in line with its estimates, but net profit missed expectations by 15% because of higher-than-anticipated credit costs.

The pressure reflected higher slippages, write-offs and a one-off standard asset provision. CLSA also pointed to muted average CASA growth of 5% YoY despite strong FCNR deposit accretion of $3.4 billion.

Although the bank’s cost of deposits declined by 15 basis points, it remained higher than that of peers. Loan growth was driven by lower-yielding wholesale and secured retail advances, while loan yields declined 40 basis points quarter-on-quarter and around 150 basis points YoY to 10.8%.

CLSA acknowledged that pressure on NIMs and asset quality could be easing but said its projected medium-term return on equity of 8–9% and the bank’s cyclical business profile did not justify a valuation of 1.4 times price-to-book value.

RBL Bank Technical Outlook: Kwala Intel Flags Volatility

AI-powered market intelligence platform Kwala Intel presented a conditional bullish outlook on RBL Bank shares, identifying Rs 401.30 as a level the stock would need to move above to support the positive setup.

The platform also highlighted elevated volatility, noting that the stock had broken below the Rs 393.79 swing level on volume equivalent to 4.59 times the average.

According to Kwala Intel, the setup represents a conditional trading trigger rather than a buy signal at the prevailing price. The outlook suggests that investors may continue to monitor price action and trading volumes alongside the bank’s financial performance and credit-cost trends.