UTI AMC shares slide as profit halves; RBL Bank surges 9% on NBD deal

Shares of UTI Asset Management Company slipped up to 10 per cent after its Q2 profit halved due to one-time pension-related expenses and weaker income

UTI Asset Management Company (AMC) fell as much as 10 per cent on Monday after its second-quarter earnings missed Street estimates. Shares ended at Rs 1,340, down 4.6 per cent — the sharpest decline among AMC peers. 

UTI AMC reported a 53 per cent sequential decline in consolidated net profit to Rs 113 crore for the quarter ended September 2025, compared with Rs 239 crore in the quarter ended June 2025. Total income fell 22 per cent sequentially to Rs 421 crore.

 

Profitability was impacted by a 38 per cent quarter-on-quarter rise in employee benefit expenses, which came in at Rs 159 crore. This increase was due to a one-time impact from the revision in family pension as part of the voluntary retirement scheme (VRS) settlement.

 

Brokerages JM Financial and Centrum downgraded the stock following the earnings miss. 

RBL Bank shares jump after Emirates NBD’s acquisition plan 

RBL Bank surged nearly 9 per cent on Monday as analysts turned bullish on the lender’s medium-term outlook, driven by fresh capital infusion and lower risk following Emirates NBD’s proposed stake acquisition. 

Dubai-based Emirates NBD on Saturday announced plans to purchase a 60 per cent stake in RBL Bank through a preferential issue at Rs 280 per share, valuing the deal at around $3 billion. This marks the largest cross-border acquisition in India’s banking sector.

 

RBL Bank’s shares closed 9.13 per cent higher at Rs 327 — their highest level in five years.

 

Citi said the Emirates NBD deal could usher in a “prolonged growth phase” for the lender, raising its target price to Rs 390 from Rs 300 while maintaining a buy rating.

 

Morgan Stanley noted that the transaction removes the key “tail risk” related to capital adequacy amid weak profitability, high leverage, and the upcoming expected credit loss (ECL) framework. The brokerage lifted its target price to Rs 305 from Rs 175 earlier.

 Jefferies said such transformative deals often precede stronger investments in retail, digital, and technology platforms. The infusion of capital and expertise by a large global bank, it added, would be positive not only for RBL Bank but also for the broader mid-tier banking segment. 

BSE places RRP Semiconductors under enhanced surveillance

 

The BSE has cautioned investors against dealing in shares of RRP Semiconductors after observing an extraordinary surge in the company’s stock price.

 

The stock’s price has skyrocketed from Rs 15 in April 2024 to Rs 9,2920 this month — a movement the exchange said was “not commensurate with the company’s financials.”

 

Consequently, the scrip has been placed under enhanced surveillance measures (ESM), which attract stricter trading restrictions. These include:

• Trade-for-trade settlement
• A 2 per cent price band
• 100 per cent margin requirements
• Periodic call auction sessions

 

BSE also noted that the company had recently issued a clarification denying market rumours linking it to legendary cricketer Sachin Tendulkar and alleged land allotment from the Maharashtra government.

 

“The movement in the company’s shares is not in line with its financials. Investors are therefore advised to exercise caution while dealing in the scrip,” the exchange said. 

Seven firms receive Sebi approval for IPO 

Logistics major Shadowfax Technologies, Asset Reconstruction Company India (ARCIL), and five other firms have received approval from the Securities and Exchange Board of India (Sebi) for their initial public offerings (IPOs).

 

The other firms that secured the regulator’s clearance are PNGS Reva Diamond Jewellery, Rayzon Solar, Sudeep Pharma, Safex Chemicals India, and Aggcon Equipments International.