RBL Bank Limited announced that Executive Director Rajeev Ahuja will retire from his position upon completion of his current RBI-approved term ending February 20, 2026. The Board of Directors made this announcement during its meeting held on December 30, accepting his retirement request effective February 21, 2026.

Executive Director Retirement Details

The board accepted Mr. Rajeev Ahuja's request to retire from his position as Executive Director and Key Managerial Personnel, marking the end of his tenure with the bank. His retirement coincides with the completion of his current term approved by the Reserve Bank of India.

Contributions and Legacy

The Board expressed profound appreciation for Mr. Ahuja's contributions, highlighting his pivotal role in the bank's transformation journey from Ratnakar Bank to RBL Bank. He has been a core member of the senior management team for over a decade, serving as a strong stabilizing force for the institution.

During his tenure, Ahuja oversaw multiple capital issuances and played a key role in forging new partnerships while strengthening investor relations. He provided oversight to the retail banking business and contributed significantly to the bank's digital initiatives. His leadership was particularly notable in establishing the Banking as a Service (BAAS) business, helping position RBL Bank as a pioneer in this domain.

Regulatory Compliance and Disclosure

The announcement was made under Regulation 30 of SEBI Listing Regulations, with the board meeting conducted on December 30. The decision aligns with regulatory requirements and marks a planned transition as Ahuja's current term reaches its natural conclusion. The board noted that his leadership and commitment had significantly contributed to the bank's growth trajectory over more than a decade of service.

Succession Planning

The bank has previously announced that Mr. Jaideep Iyer will be appointed as Additional Director and Whole-time Director, designated as Executive Director, effective February 21, 2026, subject to RBI approval and shareholder consent. This ensures a smooth transition in executive leadership as Ahuja steps down from his role.

ICRA Limited has maintained RBL Bank 's long-term rating of ICRA AA- on Rating Watch with Positive Implications while enhancing the bank's certificates of deposit programme limit. This rating action follows the ongoing evaluation of Emirates NBD PJSC's (ENBD) proposed ₹26,853 crore investment to acquire a controlling stake in RBL Bank.

Rating Action Summary

ICRA has taken several rating actions on RBL Bank's various instruments:

Transaction Status and Regulatory Progress

The proposed ENBD transaction, announced in October 2025, involves a ₹26,853 crore investment through preferential issue to acquire a 60% controlling stake in RBL Bank. The transaction has received shareholder approval but remains subject to various statutory and regulatory approvals. Additionally, ENBD will make a mandatory open offer for up to 26% stake from public shareholders, and the transaction includes amalgamation of ENBD's Indian branches with RBL Bank.

Current Financial Performance

RBL Bank's financial metrics as of September 30, 2025, reflect a stable position:

Rating Rationale and Key Factors

ICRA's decision to maintain the rating watch reflects several factors. The rating agency acknowledges RBL Bank's comfortable capital position with adequate ratios, though profitability remains constrained by high credit provisions and operating costs. The bank's earnings profile has been impacted by increased slippages in unsecured retail loans, particularly credit cards and microfinance segments, leading to elevated credit costs of 1.30% (annualised) in H1 FY2026.

The substantial equity infusion from the proposed ENBD transaction is expected to support net interest margins and overall profitability. However, ICRA continues to monitor stress in unsecured segments due to worsening credit discipline and overleveraging concerns among borrowers.

Operational Efficiency and Future Outlook

RBL Bank's operational metrics show mixed trends. The bank's cost-to-income ratio remains elevated due to discretionary expenditure for customer franchise expansion and scaling up of in-house credit card collection teams. Operating costs as a percentage of average total assets stood at 4.80% in H1 FY2026.

The bank's deposit base has shown improvement with gradual increase in retail deposits, supporting its liquidity coverage ratio. However, the share of granular deposits (below ₹3 crore) remains relatively low at 51.00% of total deposits as of September 30, 2025.

Resolution Timeline

ICRA will continue monitoring the progress of regulatory approvals and ENBD's strategy for RBL Bank operations. The rating agency will resolve the rating watch upon completion of the transaction, with the substantial capital infusion expected to significantly enhance the bank's financial profile and operational capabilities.