RBL Bank reported a net profit of ₹254 crore for the quarter ended June 30, 2026, a 27% increase from ₹200 crore in the corresponding period of the previous year. Revenue for the quarter came in at ₹38.4 billion rupees, compared to ₹34.4 billion rupees in the same period last year. The bank's operating profit grew 31% year-on-year to ₹923 crore, supported by a 12% rise in net interest income to ₹1,654 crore. The net interest margin for the quarter stood at 4.13%. The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on July 17, 2026.

During the quarter, Emirates NBD Bank (P.J.S.C) infused approximately ₹26,015.77 crore through a preferential issue. Following this infusion, Emirates NBD holds 60% of the expanded share capital of RBL Bank and has been classified as a promoter. The bank's total capital adequacy ratio strengthened significantly to 33.28% as of June 30, 2026, compared to 14.25% as of March 31, 2026, while the CET-1 ratio stood at 32.2%.

Key Financial Highlights (Standalone)

The following table summarizes the bank's key standalone financial metrics for the quarter:

Asset Quality and Provisions

Asset quality showed improvement both on a year-on-year and sequential basis. The gross non-performing assets (NPA) ratio declined to 1.30% from 2.78% in the same quarter last year, and improved from 1.45% on a quarter-on-quarter basis. The net NPA ratio stood at 0.37%, down from 0.45% a year ago and from 0.39% in the previous quarter. Provisions for the quarter stood at ₹6 billion rupees, compared to ₹6.78 billion rupees in the previous quarter. The provision coverage ratio including technical write-offs was 94.94%.

Business Growth Metrics

Net advances grew 23% year-on-year to ₹1,16,223 crore, with retail advances constituting 55% of the mix. Total deposits grew 11% year-on-year to ₹1,24,829 crore, with granular deposits (less than ₹3 crore) increasing 13% to ₹65,365 crore. The CASA ratio was reported at 29.2%. Operating expenses de-grew 8% year-on-year to ₹1,691 crore, leading to an improvement in the cost-to-income ratio to 64.7% from 72.4% in Q1 FY26.

Pursuant to Regulation 30 and 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording and transcript of the earnings call held on July 17, 2026, are available on the bank's website.

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:

*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.