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Informist, Thursday, Jun. 25, 2026

 --ICRA upgrades rating on RBL Bank's basel III tier II bonds to AAA from AA- 
 

NEW DELHI – ICRA Ratings has upgraded rating on RBL Bank's INR 700 million Basel III compliant tier-II bonds to 'AAA' from 'AA-' with a stable outlook, the bank said in a filing Thursday. The rating agency removed the bank's tier II bonds from rating watch with positive implications. ICRA also upgraded the rating on the bank's fixed deposits to 'AAA' from 'AA', while reaffirming the 'A1+' rating on the bank's short-term fixed deposits and certificates of deposit.

The rating upgrade reflects the changes in RBL Bank's shareholding after Emirates NBD Bank acquired a controlling stake as the new promoter through a preferential allotment involving an investment of nearly INR 260.16 billion, the rating agency said. On Jun. 18, the bank's board approved the allotment of 929.13 million equity shares worth INR 260 billion by way of a preferential issue on a private placement basis to Emirates NBD Bank. Following the allotment, the total share capital of the bank increased to INR 15.49 billion from INR 6.19 billion.

"Moreover, the association with Emirates NBD is expected to provide RBL with capital support if needed, improved financial flexibility, and operational and technological synergies," the rating agency said. "The bank is also likely to benefit from strategic guidance and reputational advantages arising from its integration with a well-established international banking group."

The rating agency expects RBL Bank's operational efficiency to improve as it scales up and taps new revenue streams. It also sees the anticipated reduction in credit costs supporting overall profitability. However, this will depend on the bank's ability to move into better customer profiles and asset segments over the medium to long term.

The rating agency said it could downgrade RBL Bank's rating due to negative factors such as any deterioration in Emirates NBD's credit profile, or lack of adequate funding support to maintain RBL Bank's capital and liquidity cushions if required. Other negative triggers include a sustained return of assets below 1%, or a decline in capital cushions to less than 4%. A material weakening in asset quality or capital position that hits solvency--with net non-perfoming assets to core equity ratio above 15% on a sustained basis--would also be negative.

In addition, any material weakening in the bank's liability franchise that impacts its resource profile is a risk, while positive factors are not applicable as all instrument ratings are already at the highest possible level.

For the March quarter, the bank had reported net profit of INR 2.30 billion and total income of INR 47.89 billion. Thursday, shares of the bank ended at INR 371.05, down 1.6%, on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Vaishali Tyagi

Edited by Akul Nishant Akhoury

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