RBL Bank has reported robust growth in its provisional financial figures for the second quarter, with total deposits reaching Rs. 116,665 crore and gross advances surpassing the Rs. 1 lakh crore mark.

Deposit Growth and Composition

The bank's total deposits saw an 8% year-on-year (YoY) increase and a 3% quarter-on-quarter (QoQ) growth. Notably, deposits below Rs. 3 crore, which the bank considers as granular retail deposits, constituted approximately 51% of total deposits, highlighting RBL Bank's focus on building a stable deposit base.

Current Account Savings Account (CASA) deposits reached Rs. 37,169 crore, resulting in a CASA ratio of 31.9%. This represents a modest 3% YoY growth in CASA deposits, though there was a slight decline in the CASA ratio compared to the previous year's 33.6%.

Advances Growth

RBL Bank's gross advances crossed a significant milestone, reaching Rs. 102,350 crore, marking a strong 14% YoY and 6% QoQ growth. The bank maintained a balanced portfolio with a retail to wholesale advances mix of approximately 60:40.

Key highlights of the advances growth include:

• Retail advances: Grew by 11% YoY
• Wholesale advances: Increased by 20% YoY
• Commercial banking advances (within wholesale): Surged by 33% YoY
• Secured retail advances: Rose by 29% YoY
• Unsecured retail advances: Declined by 7% YoY

Liquidity Position

The bank maintained a healthy liquidity position, with the Liquidity Coverage Ratio averaging 127% for the quarter, ensuring a strong buffer against potential short-term liquidity disruptions.

Financial Performance Overview

RBL Bank's Executive Director, Rajeev Ahuja, signed off on these provisional figures, which 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.

The bank's focus on growing granular retail deposits and its balanced approach to advance growth across various segments demonstrates its commitment to sustainable expansion and improved financial stability. As RBL Bank crosses the Rs. 1 lakh crore mark in gross advances, it positions itself for continued growth in the competitive banking sector.

RBL Bank , a prominent player in India's banking sector, has recently found itself in the spotlight due to regulatory and financial developments. The bank has received a show cause notice from Maharashtra tax authorities, demanding ₹92 crore in Goods and Services Tax (GST) for the financial year 2019-20. This development, coupled with recent financial results and analyst perspectives, paints a complex picture of the bank's current position.

GST Demand Notice

According to an official intimation from RBL Bank to the stock exchanges, the bank received a show cause notice dated September 30, 2025, from the Assistant Commissioner of State Tax in Mumbai. The notice proposes a GST demand of ₹92,00,23,536, including interest and penalties, for the financial year 2019-20.

The crux of the issue lies in the reversal of GST input credit taken under a separate registration obtained for the bank's Digital Banking Business vertical. RBL Bank has stated that it will respond to the notice within the prescribed timelines and is optimistic about a favorable outcome.

Bank's Response and Financial Impact

In its communication, RBL Bank expressed confidence in its position, stating, "Based on the Bank's assessment, the Bank is hopeful of a favorable outcome and does not reasonably expect the said SCN to have any material financial impact on the Bank." This assertion suggests that the bank believes it has a strong case in its favor.

Recent Financial Performance

The GST demand comes at a time when RBL Bank has reported challenging financial results for its recent quarter:

The bank acknowledged challenges in its cards portfolio but highlighted strong growth in its liability business.

Market Response and Analyst Perspective

The market's initial reaction to these developments was cautious, with RBL Bank's shares closing down 0.81% at ₹275.00. However, not all outlooks are negative. Citi, a prominent financial services firm, has maintained a 'Buy' rating on RBL Bank with a target price of ₹300.00. Citi's analysts expect the bank's net interest margins to improve from the second quarter onwards, suggesting potential for recovery.

Looking Ahead

As RBL Bank navigates these regulatory and financial challenges, stakeholders will be closely watching how the bank addresses the GST demand and its strategies to improve its financial metrics. The bank's ability to manage its NPAs, particularly in its cards portfolio, and capitalize on its strong liability growth will be crucial factors in its performance in the coming quarters.

RBL Bank's management remains optimistic about resolving the GST issue favorably, which could provide some reassurance to investors. However, the bank's future performance will largely depend on its ability to overcome the current challenges and capitalize on growth opportunities in India's dynamic banking sector.