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Informist, Thursday, Jul. 16, 2026

 

By Nandini Sinha

 

MUMBAI – RBL Bank Ltd. is expected to report a healthy rise in its net profit for the June quarter, supported by strong loan growth, according to brokerages tracking the lender.

 

The Maharashtra-based bank is estimated to post a net profit of INR 2.24 billion for the June quarter, up nearly 12% on year, according to the average of estimates from five brokerages. However, the bank's bottom line is expected to decline nearly 3% on a sequential basis. RBL Bank had reported a net profit of INR 2.30 billion for the March quarter.

 

The highest estimate for the bank's net profit is INR 2.72 billion from Nuvama Wealth Management Ltd. and the lowest estimate is INR 1.82 billion from Motilal Oswal Financial Services Ltd.

 

RBL Bank's net interest income for the reporting quarter is estimated to be INR 17.18 billion, up over 16% on year and up nearly 3% on quarter, according to the average of five estimates. The highest estimate for the bank's net interest income is INR 17.96 billion from Nuvama and the lowest estimate is INR 16 billion from Dolat Capital Market Pvt. Ltd.

 

"NII (net interest income) growth will be in-line with average loan growth as the rise in yield on advances to be in tandem with rise in cost of deposits," YES Securities Ltd. said.

 

The bank's loan growth will be led by the wholesale, commercial, loan against property, and gold segments, Motilal Oswal said. RBL Bank had said its gross advances rose 21% on year to INR 1.17 trillion as of Jun. 30. Total deposits grew 11% on year to INR 1.25 trillion.

 

The bank's slippages would be higher sequentially for the June quarter, while provisions will be largely stable, YES Securities said.

 

"...we will have elevated slippages for two to three quarters," the bank's management had said in a conference call with analysts after the results of the March quarter. "These slippages that we have is a matter of H1 (Apr-Sept of financial year 2026-27) at max...we should materially reduce slippages in H2 (Oct-Mar of FY27)."

 

For banks, deposit growth of 12% continues to lag loan growth even as term deposits drive an incremental rise, according to brokerages. The benefits of foreign currency non-resident bank deposits for banks will be visible from the Jul-Sept quarter, according to Dolat Capital.

 

The Reserve Bank of India in June introduced a concessional swap facility to cover the full hedging costs for banks raising fresh three-to-five-year FCNR (B) deposits till Sept. 30. The move is expected to attract inflows of about $43 billion, according to an Informist poll.

 

RBL Bank's net interest margin is expected to decline sequentially to 4.24% amid a shift in the product mix, according to Motilal Oswal. For the March quarter, RBL Bank had reported a net interest margin of 4.41%. 

 

Stress in the credit card segment is expected to keep the bank's credit costs high at 2.4%, according to Motilal Oswal. The bank's management had told analysts they expect the credit cost to come down to 1.5% in Oct-Mar of FY27. RBL Bank's credit cost was 0.65% in the March quarter of FY26.

 

RBL Bank will announce its financial results for the June quarter Friday. Thursday, shares of the bank closed at INR 362.80 apiece on the National Stock Exchange, down nearly 3% from Wednesday. The stock is up nearly 16% since Apr. 25 when the bank announced the results for the March quarter.

 

Of the total 10 brokerage reports on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 373 per share. This is nearly 3% higher than the current market price. Two brokerages have a "hold" recommendation at an average target price of INR 326 per share, while the remaining two brokerages have a "sell" rating on the stock with an average target price of INR 308 per share.

 

Following are the June quarter earnings estimates of RBL Bank from five brokerages, in descending order of the estimate of net profit, in INR billion:

 

BROKERAGE NAME	NET INTEREST INCOME	NET PROFIT
Nuvama Wealth Management Ltd.	17.96	2.72
Dolat Capital Market Pvt. Ltd.	16.00	2.60
YES Securities (India) Ltd.	17.41	2.11
Elara Securities (India) Pvt. Ltd.	16.85	1.95
Motilal Oswal Financial Services Ltd.	17.68	1.82
Average	17.18	2.24

 

End

 

Edited by Deepshikha Bhardwaj

 

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