RBL Bank (RBLBANK) Q3 25/26 earnings summary

Executive summary

• Net advances grew 14% YoY and 3% sequentially to INR 1,03,086 crore, with retail advances up 10% YoY and wholesale banking advances up 21% YoY; deposits increased 12% YoY and 3% sequentially to INR 1,19,721 crore, with granular deposits (<INR 3 crore) growing 15% YoY and 4% sequentially, now constituting 51.5% of total deposits.

• Net profit for Q3 FY26 reached Rs. 214 crore, impacted by one-off pre-tax expenses of Rs. 32 crore due to wage revisions under new labor codes effective November 2025.

• Branch expansion accelerated, with 18 new branches added in the quarter; plans to reach 800 branches by next March and 2,000 in three years.

• The Board approved a preferential issue of shares to Emirates NBD Bank, which will become the promoter, and a scheme of amalgamation with its India branch, pending regulatory approvals.

• Total consolidated income for Q3 FY26 was ₹471,841 lakh, up from ₹461,047 lakh in Q3 FY25 and ₹444,159 lakh in Q2 FY26.

Financial highlights

• NII rose 5% YoY and 7% sequentially to INR 1,557 crore; NIM improved to 4.63% from 4.51% sequentially.

• Other income grew 13% YoY to INR 1,050 crore (excluding a one-off investment benefit in Q3 FY25).

• Core fee income increased 10% YoY and 3% sequentially to INR 959 crore.

• Cost-to-income ratio improved to 62.5% in Q3 FY26 from 66.4% in Q3 FY25.

• Provisions and contingencies for Q3 FY26 were ₹63,927 lakh, down from ₹118,890 lakh in Q3 FY25.

Outlook and guidance

• Margins expected to improve marginally in Q4 FY26, even after a 20-25 bps repo cut, due to further term deposit repricing and better yielding assets.

• Credit card slippages expected to remain elevated for two more quarters, with normalization anticipated by September FY27.

• Branch expansion and capital infusion from Emirates NBD expected to drive accelerated growth and footprint expansion.

• Focus on stable loan and deposit growth, with continued emphasis on retail and granular deposits.

• The bank is awaiting statutory and regulatory approvals for the preferential issue and amalgamation scheme with Emirates NBD Bank.