RBL Bank (RBLBANK) Q2 25/26 earnings summary

Executive summary

• Announced a landmark strategic transaction: Emirates NBD to invest ₹26,853 crore ($3 billion) for a 60% stake via preferential issue, making Emirates NBD the new promoter and resulting in a change of control, subject to regulatory approvals.

• Board approved unaudited standalone and consolidated Q2 FY26 results, with net profit at ₹178.5 crore (standalone) and ₹192.5 crore (consolidated); advances crossed ₹1 lakh crore.

• Scheme of amalgamation approved for Emirates NBD's India branch with the bank, with share allotment as consideration.

• Board approved capping foreign shareholding at 24% until transaction completion, then up to 74% post-completion, to ensure regulatory compliance.

• Amendments to Articles of Association to grant Emirates NBD board nomination rights and increase authorized share capital to ₹1,800 crore.

Financial highlights

• Standalone Q2 FY26: Total income ₹4,440.2 crore, net profit ₹178.5 crore, operating profit ₹728.4 crore; consolidated net profit ₹192.5 crore.

• Advances rose 14% year-over-year to ₹100,529 crore; deposits up 8% to ₹116,667 crore; CASA ratio at 31.9%.

• Gross NPA at 2.32%, Net NPA at 0.57% as of September 30, 2025; provision coverage ratio at 75.92%.

• Net Interest Margin (NIM) stood at 4.51%; core fee income grew 13% year-over-year to ₹926 crore.

• Cost-to-income ratio improved to 62.5%; capital adequacy ratio at 14.71% (Basel III); CET-1 at 13.51%.

Outlook and guidance

• Capital infusion expected to support growth for the next 5-7 years, expand product offerings, and enhance scale and efficiency.

• Focus on retail-led growth, digital enablement, and maintaining healthy asset quality; continued investment in digital banking and new product launches.

• ROA and margins expected to expand with equity inflow; NIM guided to 4.75-4.8% exit for the year.

• Loan book growth of 30%+ considered achievable post-transaction, with significant branch and product expansion planned.

• Board to convene EGM on November 12, 2025, to seek shareholder approvals for all major proposals.