Have you been tracking the rbl bank share price lately? If not, you might want to take a look! On Monday, April 28, RBL Bank made headlines as its shares surged by a solid 6%. Now, you might be wondering, how can a bank’s stock jump when its net profit plummeted a whopping 81% year-over-year? Well, let’s dive deep into the story — it’s more interesting than you think.
What’s Behind the Big Move in RBL Bank Share Price?
Despite a dramatic fall in net profits, the street is buzzing with optimism around RBL Bank. Why? It’s simple — asset quality has improved, and brokerages are betting on a strong comeback next year.
RBL Bank posted a net profit of ₹68.7 crore for Q4, compared to ₹352.6 crore in the same quarter last year. That’s a steep fall, no doubt. But when you look under the hood, you’ll notice better other income and lower provisions — two green flags for investors.
At around 11:15 AM on Monday, the rbl bank share price was quoting at ₹200 apiece, marking a 6.3% jump from a year ago. Impressive, right?
Net Interest Income Takes a Hit — But It’s Not All Bad
RBL Bank’s net interest income (NII) slipped by 2.3% year-over-year to ₹1,563 crore. The reason? A slowdown in disbursements from its Joint Liability Group (JLG) business.
Still, there’s a silver lining: the net interest margins (NIMs) stayed pretty steady at 4.89% for the quarter. Stability is good news, especially when other banks are struggling to maintain margins.
Fresh Slippages and Asset Quality: A Major Improvement
If you’re worried about bad loans, breathe easy. Fresh slippages came in at ₹1,060 crore, down from ₹1,310 crore in the previous quarter. Even better, the Gross NPA (GNPA) ratio improved by 32 basis points quarter-on-quarter to 2.6%.
Net NPA (NNPA)? It has moderated to a comfortable 0.29%. That’s music to the ears of any bank investor.
RBL’s Growth Roadmap: Loan Growth and Lower Credit Costs
Looking ahead, RBL Bank management expects 16–17% loan growth by FY27E. Plus, they are forecasting a major drop in credit costs by FY26.
Think of it like fixing leaks in a boat — once the leaks are plugged (bad loans, in this case), the boat (the bank) can sail much faster.
What About Net Interest Margins (NIMs)?
The NIMs are expected to stay range-bound around 5.3% for FY26-27E. That’s not too shabby when you consider that deposit rates are falling, and the bank holds a chunky 45% fixed-rate loan book.
Plus, lower interest reversals should cushion margins even further.
Retail Secured and Commercial Banking to Lead Growth
RBL Bank’s future growth isn’t going to come out of thin air. It’s going to be driven largely by retail secured lending and commercial banking.
These segments are like the sturdy pillars of a bridge — offering stable and predictable income, critical for any bank trying to scale safely.
Brokerages Turn Bullish: Upgrades and Target Price Hikes
Big names in the brokerage world are feeling pretty good about RBL’s prospects.
Motilal Oswal has upgraded RBL Bank from a ‘Neutral’ to a ‘Buy’ rating with a new target price of ₹220 per share. They highlighted that asset quality is strengthening, and even noted that NNPA in the JLG business is now zero thanks to full provisioning. That’s no small feat.
Similarly, Emkay Global has kept its ‘Buy’ rating intact, raising the target price to ₹225. They’re banking on improved credit growth next year and expect margin tailwinds from potential rate cuts.
ICICI Securities Also Joins the Optimism Party
ICICI Securities isn’t sitting on the sidelines either. They’ve upgraded RBL Bank from ‘Hold’ to ‘Add’ and nudged up the target price to ₹210. They’re projecting loan growth of 13% in FY26E, with a rise in RoA (Return on Assets) to 0.85%, and possibly even hitting the magical 1% mark.
If that happens, the rbl bank share price could be in for a major re-rating.
The Risks: Slippages Could Still Play Spoilsport
Now, it’s not all sunshine and rainbows. Higher-than-expected slippages could still be a thorn in RBL Bank’s side.
Think of it like potholes on a newly paved road — you need to keep an eye out to avoid a bumpy ride.
Read More: Syngene International Shares Plummet 13%: What’s Worrying Investors?
Conclusion
Despite the headline-grabbing 81% profit drop, RBL Bank’s story is far from gloomy. Stable margins, improving asset quality, strategic loan growth plans, and bullish brokerage reports have fueled optimism.
Sure, there are risks — there always are in banking — but RBL’s proactive management and strengthening fundamentals could make the rbl bank share price an exciting bet for long-term investors.
If you’re thinking about adding some spice to your portfolio, RBL Bank might just be worth a second look!
