Why Did RBL Bank Shares Fall 9% Today Despite 548% YoY Increase in Net Profit?

Synopsis: Shares fell nearly 9% despite a 548% YoY profit jump to  Rs 214 crore, as higher provisions of  Rs 639 crore, one-off costs of  Rs 32 crore, and management caution on credit card stress outweighed revenue growth of 4% YoY and mixed analyst sentiment.

The shares of the prominent private sector bank plummeted 9 percent in today’s trading session after its Q3FY26 results, prompting CLSA to maintain a cautious “hold” rating on the stock.

With a market capitalisation of Rs 18,601.10 crore, the shares of RBL Bank Ltd were trading at Rs 301.05 per share, decreasing around 7.40 percent as compared to the previous closing price of Rs 325.10 apiece.

Q3FY26 Highlights

The shares of RBL Bank Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which Net Interest Income increased by 5 percent on a year-on-year basis from Rs 1,585 crore in Q3FY25 to Rs 1,657 crore in Q3FY26. However, on a Quarter-on-Quarter basis, Net Interest Income zoomed by 7 percent from Rs 1,551 crore in Q2FY26 to Rs 1,657 crore in Q3FY26.

Moreover, net profit increased by 548 percent on a yearly basis from Rs 33 crore in Q3FY25 to Rs 214 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by by 20 percent from Rs 179 crore in Q2FY26 to Rs 214 crore in Q3FY26.

However, the lender’s profitability came under pressure as provisions rose sharply by 28% quarter-on-quarter, increasing from  Rs 500 crore to  Rs 639 crore. In addition to higher credit costs, earnings were further impacted by a one-off expense of  Rs 32 crore arising from the implementation of new labour laws.

Moreover, the management of RBL Bank cautioned on the earnings call that its credit card portfolio is facing stress due to macroeconomic pressures, with higher slippages likely over the next two quarters. At the same time, cards in force have shown sequential growth after six to seven quarters of decline.

Additionally, CLSA retained its “hold” rating on the lender with a price target of  Rs 310, describing the quarter as average from a balance sheet perspective. Among 22 analysts tracking the stock, 13 recommend “buy,” six suggest “hold,” while three maintain a “sell” rating.

Other Q3FY26 Highlights

RBL Bank delivered steady deposit growth driven by granular retail traction. Total deposits rose 12% YoY and 3% QoQ to  Rs 1.20 lakh crore. Granular deposits under  Rs 3 crore grew faster at 15% YoY, forming over half of deposits, while CASA remained stable at 30.9%, supporting a resilient funding profile.

As of 31st December 2025, the Bank has 1,921 total touchpoints of which 580 are bank branches and 1,341 business correspondent branches. Of 1,341 BC branches, 291 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 1,084 business correspondent branches.  

RBL Bank is a leading Indian private sector bank with a diversified presence across corporate, retail, and business banking. It has a strong focus on digital products, credit cards, MSME lending, and granular deposits, serving a wide customer base through an expanding branch and technology-led network.4

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