Citi Maintains Buy on RBL Bank at ₹390; Q1FY26 Advances Rise 21% YoY
Citi has maintained a Buy rating on RBL Bank with a target price of ₹390, backed by 21% YoY gross advance growth to ₹117,344 crore driven by secured retail and wholesale segments. Total deposits declined 10% QoQ to ₹124,813 crore due to a strategic wholesale deposit run-down post the ENBD preferential allotment, while granular deposits grew 13% YoY and LCR improved to 133%.
*this image is generated using AI for illustrative purposes only.
RBL Bank has received a Buy rating from Citi with a target price of ₹390, as the bank reported strong provisional business updates for the quarter ended June 30, 2026. Gross advances grew 21% year-on-year and 2% quarter-on-quarter to ₹117,344 crore, driven by robust momentum in both secured retail and wholesale lending segments. Total deposits, however, declined 10% QoQ to ₹124,813 crore — a deliberate strategic move attributed to the non-renewal of certain wholesale deposits following the completion of a preferential allotment to Emirates NBD P.J.S.C. on June 18, 2026. On a YoY basis, total deposits grew 11%.
Analyst View
Citi's Buy recommendation with a target price of ₹390 reflects confidence in RBL Bank's underlying loan growth trajectory. The brokerage acknowledged the strong secured retail and wholesale loan growth as key positives, while noting that the deposit decline was tactical in nature — stemming from the wholesale deposit run-down following the ENBD allotment — rather than a structural concern.
Advances Growth
The bank reported broad-based growth across its lending segments. Secured Retail Advances grew 18% YoY, while Wholesale Advances surged 37% YoY and 10% QoQ. Within the wholesale segment, commercial banking advances increased by 34% YoY and 10% QoQ. The mix of Retail to Wholesale advances stood at 55:45 for the period.
Deposit Profile and Liquidity
Despite the overall QoQ decline in deposits, granular deposits — those under ₹3 crore — rose 13% YoY and 2% QoQ to ₹65,364 crore, reflecting continued retail deposit traction. Current Account Savings Account (CASA) deposits fell 22% QoQ to ₹36,462 crore, remaining flat on a YoY basis, which pushed the CASA Ratio down to 29.2% from 33.6% in the previous quarter. The Liquidity Coverage Ratio for the quarter averaged 133%, improving from 130% in the prior quarter.
The following table summarises the key business metrics for the period:
| Particulars: | 30-Jun-25 | 31-Mar-26 | 30-Jun-26 (Provisional) | YoY | QoQ |
|---|---|---|---|---|---|
| Total Deposits | 112,734 | 139,018 | 124,813 | 11% | (10%) |
| Deposits < ₹3 crore | 57,934 | 63,943 | 65,364 | 13% | 2% |
| CASA | 36,614 | 46,723 | 36,462 | 0% | (22%) |
| CASA Ratio | 32.50% | 33.60% | 29.20% | — | — |
| Liquidity Coverage Ratio* | 152% | 130% | 133% | — | — |
| Gross Advances | 96,688 | 115,464 | 117,344 | 21% | 2% |
*Liquidity Coverage Ratio is the average for the quarter. All deposit and advance figures in ₹ crore.
Regulatory Disclosures
These figures are provisional and have been released ahead of the official financial results for Q1FY26. The final results are subject to approval by the Audit Committee of the Board of Directors, the Board of Directors, and a limited review by the statutory auditors of the bank. The intimation was made in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for RBL Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.08% | +1.32% | +5.86% | +16.63% | +45.89% | +72.36% |
How will the bank manage funding costs to replace the run-off in wholesale deposits while maintaining the current Net Interest Margin?
What strategic initiatives are planned to reverse the decline in CASA deposits and improve the ratio back to previous levels?
Will the 37% YoY surge in wholesale advances lead to a deterioration in asset quality, or are provisions sufficient to cover this risk?
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