RBL Bank up 6% as brokerages raise target after Q4 show

Shares of private lender RBL Bank will be in focus on Monday, April 28, after the bank reported an 80.5% decline in its standalone net profit on a year-on-year basis, for the financial year 2025.

The PAT stood at Rs 68.7 crore against Rs 352.64 crore reported in the corresponding quarter of the previous financial year.

RBL Bank’s net interest income (NII) de-grew by 2% YoY at Rs 1,563 crore, while the net interest margin (NIM) stood at 4.89%.

On the asset quality front, the gross non-performing assets (GNPA) was down 32bps QoQ to 2.60% and the net non-performing assets (NNPA) were down 24 bps QoQ to 0.29%.

The retail advances grew by 13% YoY to Rs 55,703 crore and the bank’s retail:wholesale mix was 60:40. Meanwhile, the secured retail advances grew 43% YoY. Additionally, the total seposits witnessed a growth of 7% YoY to Rs 1,10,944 crore, while the CASA grew by 4% YoY to Rs 37,886 crore. The CASA ratio stood at 34.1%.

Here’s what brokerages say:


Investec: Buy| Target price: Rs 230


Investec has upgraded RBL Bank to a "Buy" from "Hold," raising the target price to Rs 230 from Rs 170.

Slippages have improved, declining to 4.6% from 5.9% in the third quarter. The brokerage expects RBL Bank's return on equity (RoE) to rise to 7% in FY26 and 11% in FY27. It also noted that the bank's valuation, at 0.7 times its estimated FY26 book value, appears inexpensive in the current context. Credit costs are projected to decline in FY26. Additionally, the bank plans to focus on expanding secured retail and SME loans, with a guided loan growth of around 16–17% in FY26. Net interest margins (NIM) are expected to moderate to a range of 4.7% to 4.8%.

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IIFL: Add| Target price: Rs 210


IIFL has maintained an "Add" rating on RBL Bank while raising the target price to Rs 210 from Rs 155. The brokerage noted that while the worst may be behind, the path to achieving a 1% return on assets (ROA) remains long and challenging. Loan growth has been sluggish and is expected to pick up only from the second half of FY26. Accelerated provisions are being made t

o limit credit costs in FY26. IIFL pointed out that the weak loan growth of 10% year-on-year was primarily due to a decline in unsecured loans. However, the brokerage expects growth momentum to revive from the second half of FY26 onwards. Credit cost is projected to improve to 2.3% in FY26 compared to 3.3% recorded in the previous year.

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