Brokerages remain divided on RBL Bank after Q1 result; check recommendation

RBL Bank share price was trading 1.65 per cent lower at ₹258.8 per share on the BSE after the bank reported its Q1 numbers

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RBL Bank shares slipped 3.2 per cent, logging an intraday low at ₹254.7 per share on BSE. The selling pressure on the counter came after the company posted Q1 results. 

 

At 11:19 AM, RBL Bank share price was trading 1.65 per cent lower at ₹258.8 per share on the BSE. In comparison, the BSE Sensex was up 0.48 per cent at 82,148.37. 

 

The company's market capitalisation stood at ₹15,765.65 crore. The 52-week high of the stock was at ₹272.9 per share, and the 52-week low of the stock was at ₹146 per share. 

What should investors do with RBL Bank shares post Q1FY26 results?

Motilal Oswal has maintained a 'Buy' with a target price of ₹290 per share.

 

According to the brokerage, the bank reported a beat on earnings, with margins sharply moderating due to the repo rate cuts. Deposits grew 2 per cent quarter-on-quarter (Q-o-Q), with the current account savings account (CASA) ratio moderating to 32.5 per cent. Advances also increased 2 per cent Q-o-Q, with the bank expecting it to grow in the mid-teens, with a mid-to-high teen growth in wholesale advances. 

 

Post the results, Motilal Oswal fine-tuned its earnings per share (EPS) estimates and projected an FY27E return on asset/ return on equity (RoA/RoE) of 1.07 per cent/11.4 per cent. 

 

Incred Equities has also iterated 'Add' with an upward revision in target to ₹290 per share from ₹260. 

 

The brokerage believes that moderating the microfinance institutions (MFI) Special Mention Account (SMA) book is comforting and improves visibility of 200 basis points (bp) credit costs for FY26F. 

 

However, ICICI Securities has downgraded RBL Bank to 'Hold' from 'Add' with a revised target to ₹250 from ₹210. 

 

"RBL Bank reported a weak Q1 performance, with a sharp 40 bps Q-o-Q decline in net interest margin (NIM), double-digit drop in net interest income (NII), and no improvement in slippages (new bad loans)," the brokerage note read.   Check List of Q1 results today

RBL Bank Q1 results 

The bank posted a 46 per cent year-on-year (Y-o-Y) decline in its net profit to ₹200 crore for the quarter ended June 30, 2025, compared to ₹371.5 crore a year ago.

 

The Net Interest Income (NII) of the lender fell 13 per cent Y-o-Y to ₹1,481 crore from ₹1,700 crore, and declined 5 per cent sequentially from ₹1,563 crore in the March 2025 quarter.

 

Net Interest Margin (NIM) for the quarter stood at 4.50 per cent, as compared to 4.89 per cent in Q4FY25, and 5.67 per cent in the year-ago period. Other income of the bank rose by 33 per cent to ₹1,069 crore during the quarter, against ₹805 crore in the same period last year. In Q4FY25, other income stood at ₹1,000 crore.