RBL Bank reported a 40% YoY increase in gross advances to ₹1,433.5 billion for the quarter ended September 30, 2026. Total deposits expanded 34% YoY to ₹1,562.8 billion, driven by significant growth in both retail and wholesale segments.

The bank disclosed these provisional key financial metrics ahead of its official results announcement. The data is subject to approval by the Audit Committee and the Board of Directors, as well as limited review by statutory auditors.

Balance sheet expansion

Gross advances grew 40% YoY and 22% QoQ to reach ₹1,433.5 billion. Excluding loans provided by the international banking unit against FCNR(B) deposits, advances growth stood at 30% YoY and 13% QoQ. Secured retail advances surged 51% YoY and 42% QoQ, while wholesale advances rose 55% YoY and 21% QoQ. The retail-to-wholesale advances mix settled at 56:44.

Total deposits increased 34% YoY and 25% QoQ to ₹1,562.8 billion. CASA balances grew 14% YoY and 17% QoQ to ₹425.3 billion. However, the CASA ratio declined from 31.9% in Q2FY26 to 27.2% in Q2FY27, reflecting faster growth in term deposits relative to current and savings accounts.

*Average for the quarter

What the numbers show

A divergence exists between deposit mobilization and funding mix efficiency. While total deposits grew 34% YoY, CASA growth lagged at 14% YoY, causing the CASA ratio to contract from 31.9% to 27.2%. This indicates that the rapid balance sheet expansion was primarily funded by higher-cost term deposits rather than low-cost savings accounts. Concurrently, the Liquidity Coverage Ratio improved to 148% from 127% a year ago, suggesting enhanced liquidity buffers despite the shift in deposit composition.

The bank noted that secured retail advances grew 51% YoY, significantly outpacing the overall advance growth of 40% YoY. This highlights a strategic tilt toward secured lending, which may offer better risk-adjusted returns compared to unsecured segments.

RBL Bank Limited has received a show cause notice proposing a Goods and Services Tax demand of ₹173.09 crore for the financial year 2022-23. The notice, issued by the Assistant Commissioner of State Tax-Mumbai, relates to input tax credit availed by the bank’s Digital Banking business vertical.

The intimation was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice is dated September 29, 2026, and was issued under Section 73 of the Maharashtra Goods and Services Tax Act, 2017.

Nature of the Demand

The proposed demand includes interest and penalty. It specifically targets the input tax credit claimed by the bank under a separate GST registration obtained for its Digital Banking business vertical. The bank stated it will submit a response to the show cause notice within the prescribed timelines.

Bank's Stance and Precedents

RBL Bank indicated that it does not presently expect the matter to result in any material adverse impact on its financial position, operations, or profitability. This assessment is based on favorable orders received from GST authorities on identical issues for FY19 and FY20.

The bank believes it has adequate grounds to contest the matter on merits, leveraging these prior rulings as precedent for the current dispute regarding the separate registration for its digital vertical.