RBL Bank Limited released its provisional business update for the quarter ended December 31, 2025, showcasing strong growth momentum across key financial metrics. The private sector lender reported significant year-on-year improvements in both deposits and advances, reflecting its strategic focus on diversified growth.

Key Financial Performance Highlights

The bank's provisional results for Q3FY26 demonstrate robust performance across major business segments:

Deposit Growth and Composition

Total deposits reached ₹119,721 crores as of December 31, 2025, representing a healthy 12% year-on-year growth and 3% quarter-on-quarter increase. The bank's strategic emphasis on granular retail deposits showed positive results, with deposits below ₹3 crores growing 15% YoY to ₹61,632 crores. These smaller deposits now constitute approximately 51.5% of the bank's overall deposit base, demonstrating the institution's success in building a diversified funding profile.

Current Account and Savings Account (CASA) deposits stood at ₹36,972 crores, showing 6% year-on-year growth. However, the CASA ratio declined to 30.9% from 32.8% in the previous year and 31.9% in the preceding quarter, with a slight quarter-on-quarter decrease of 1%.

Advances Portfolio Performance

Gross advances grew impressively by 13% year-on-year to ₹104,502 crores, with a 2% quarter-on-quarter increase. The advances portfolio showed mixed performance across different segments:

Retail Advances Breakdown

• Secured retail advances: Strong 24% YoY growth and 1% QoQ growth
• Overall retail advances: 9% YoY growth, remaining flat sequentially
• Unsecured retail advances: Declined 6% YoY as part of strategic portfolio management

Wholesale Banking Strength

Wholesale advances demonstrated robust growth of 19% year-on-year and 5% quarter-on-quarter. Within this segment, commercial banking advances showed exceptional performance with 29% YoY growth and 7% QoQ growth. The bank maintained a balanced portfolio mix with approximately 59% retail and 41% wholesale advances.

Operational Metrics and Liquidity

The bank's operational efficiency remained strong with several key indicators:

The Liquidity Coverage Ratio averaged 125% for the quarter, maintaining regulatory compliance while the Joint Liability Group (JLG) segment showed excellent collection efficiency of 99.5% for December 2025.

Market Performance and Strategic Outlook

Shares of RBL Bank Limited ended at ₹320.80, up by ₹1.74, or 5.50%, on the BSE, reflecting positive investor sentiment following the business update announcement.

RBL Bank continues to prioritize the growth of granular retail deposits within its overall deposit mix. The bank's focus on building a stable funding base through smaller denomination deposits has shown positive results, with deposits below ₹3 crores representing over half of total deposits. This strategy supports the bank's long-term stability and reduces concentration risk in its funding profile.

The provisional results are subject to approval by the Audit Committee of the Board of Directors, the Board of Directors, and audit by the statutory auditors of the bank before the official announcement of Q3FY26 financial results.

RBL Bank shares will be in focus following the lender's disclosure that its application seeking a temporary cap on foreign shareholding has not been approved by authorities. The bank had formally approached both the Reserve Bank of India and the Government of India with this request, but it was not acceded to under the prevailing regulatory framework.

Foreign Shareholding Cap Request Details

The bank had sought to impose a temporary ceiling on foreign ownership at 24% of its total equity instruments on a fully diluted basis. This request was primarily aimed at managing foreign investment inflows in the context of its proposed transaction with Emirates NBD.

RBL Bank clarified that this move was intended as a precautionary measure and not due to any immediate breach of foreign shareholding limits.

Impact on Emirates NBD Transaction

Despite the rejection of the shareholding cap request, the proposed transaction with Emirates NBD remains unaffected. Based on the current shareholding structure, Emirates NBD continues to have sufficient foreign shareholding headroom, meaning the lender can still potentially acquire a stake of at least 51% in RBL Bank.

The deal continues to be contingent on receiving necessary regulatory approvals and the fulfillment of conditions precedent outlined in the investment agreement signed on October 18, 2025.

Stock Performance

RBL Bank shares demonstrated strong market performance, ending 2.08% higher on Wednesday at ₹316.15. The stock has delivered impressive returns, rallying approximately 100% over the past one year, reflecting investor confidence in the bank's prospects and the potential Emirates NBD transaction.