RBL Bank Q2 Results: Net Profit Down 20%, NII Falls 4%; Majority Stake Sale to Emirates NBD
RBL Bank Ltd.’s net profit for the second quarter of FY26 declined 20%, as per an exchange filing with the results on Saturday. The bank reported a standalone bottom-line of Rs 178 crore, compared to Rs 222 crore in the year-ago period.
Net Interest Income (NII) Down 4%
Net interest income or NII for the quarter stood at Rs 1,551 crore, down 4% from Rs 1,615 crore in the comparable quarter. This decline can be attributed to various factors, including interest rates in India and the overall economic conditions.
Provisions and NPA Ratio
The lender’s provisions were down 19% to Rs 499 crore compared to Rs 618 crore in the same quarter last year. The gross NPA ratio went down 46 basis points sequentially to 2.32% from 2.78%, while the Net NPA ratio rose 12 basis points to 0.57% against 0.45% in the previous quarter.
Advances and Deposits
RBL’s advances stood at Rs 1.0 lakh crore while deposits stood at Rs 1.16 lakh crore as of Sept 30, 2025. This indicates a stable growth in the bank’s assets and liabilities.
Majority Stake Sale to Emirates NBD
The bank has confirmed a majority stake sale to Dubai-based lender Emirates NBD and will raise funds up to Rs 26,853 crore from the entity accordingly. RBL Bank will sell 95.9 crore shares to Emirates NBD at Rs 280 each, which marks nearly a 7% discount to the stock’s previous closing price.
The fund infusion will result in a stake acquisition equivalent to 60% of the post preferential equity share capital of the bank. The India branch of Emirates NBD will be merged with RBL Bank following the fundraise. This move is expected to bring in fresh capital and strengthen the bank’s balance sheet.
Key Highlights of Q2 Results
- Net Profit down 20% at Rs 178 crore versus Rs 222 crore
- Net interest income down 4% at Rs 1551 crore vs Rs 1615 crore
- Other income up 1% at Rs 932 crore vs Rs 927 crore
- Provisions down 19% at Rs 499 crore versus Rs 618 crore
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