RBL Bank shares jump 6% on RBI nod, Q4FY26 update

RBL Bank shares (NSE: RBLBANK) rose nearly 6% on Monday after two updates that investors tracked closely. The first was a strong Q4FY26 business update showing broad-based growth in deposits and advances. The second was the Reserve Bank of India’s approval for Emirates NBD’s stake acquisition in the bank.

The move brought attention back to the lender’s balance sheet momentum, particularly at a time when the market has been focused on deposit mobilisation, retail mix and asset quality across mid-sized private banks.

What triggered the stock reaction

The day’s gain followed the combination of a regulatory approval and fresh operating numbers. RBI’s approval for the stake acquisition reduced a key uncertainty around the proposed transaction involving Emirates NBD. Separately, the Q4FY26 update signalled faster year-on-year growth in deposits and advances and an improvement in the CASA ratio to 33.6%.

The stock had also seen sharp moves around earlier earnings announcements in the past year, including sessions where it reacted to profit volatility and provisioning trends. Against that backdrop, the latest business update and regulatory nod were read as incremental positives for near-term sentiment.

RBI approval for Emirates NBD stake acquisition

RBL Bank said the Reserve Bank of India approved Emirates NBD’s stake acquisition. Another update in the provided information describes Emirates NBD bringing $1 billion from the UAE for a 60% stake, which was referred to as the largest FDI inflow into a domestic bank.

While the finer details of the RBI approval process and timelines were not provided, the key point for the market was that the regulator’s go-ahead was in place. Regulatory approvals are central to ownership changes in banking, and this update was one of the two main reasons cited for the day’s rally.

Q4FY26 business update: deposits, advances, total business

RBL Bank’s Q4FY26 business update showed growth across core balance-sheet lines. Total deposits rose 25% year-on-year to ₹139,000 crore and were up 16% sequentially. CASA deposits grew 23% year-on-year to ₹46,723 crore, and the CASA ratio stood at 33.6%.

On the asset side, gross advances increased 22% year-on-year to ₹115,000 crore. The bank also reported that secured retail advances grew 36% year-on-year, while commercial banking advances rose 29% year-on-year. The retail-to-wholesale mix stood at 59:41.

The bank said total business crossed ₹250,000 crore, up 24% year-on-year.

Deposit mix: what stands out

The Q4FY26 update pointed to faster deposit growth than advance growth, which is a key variable for loan growth capacity and funding costs. Within deposits, the rise in CASA deposits and the higher CASA ratio of 33.6% were highlighted in the update.

Separately, in results for the quarter ended December 31, 2025, RBL Bank reported total deposits of ₹119,721 crore, up 12% year-on-year and 3% sequentially. In that quarter, CASA deposits were ₹36,972 crore, up 6% year-on-year, and the CASA ratio was 30.9%.

The bank also highlighted “granular deposits” (under ₹3 crore) in the December 2025 quarter, stating they grew 15% year-on-year and accounted for 51.5% of total deposits.

Advances and portfolio mix

In Q4FY26, gross advances grew 22% year-on-year to ₹115,000 crore, with secured retail and commercial banking being the key growth drivers mentioned. The retail-to-wholesale mix remained at 59:41.

For the December 2025 quarter, net advances were reported at ₹103,086 crore, up 14% year-on-year and 3% quarter-on-quarter. The bank described the growth as being driven by a shift toward secured retail assets and commercial banking. It also reported wholesale segment growth of 21% in that quarter, led by a 30% jump in commercial banking.

A separate metric disclosed for the December 2025 quarter was a credit-to-deposit ratio of about 86.1%.

Profitability snapshot: December 2025 quarter

RBL Bank reported unaudited financial results for the quarter ended December 31, 2025, with net profit of ₹214 crore. The profit was affected by a one-time pre-tax expense of ₹32 crore linked to wage definition revisions under the new labour codes effective November 2025.

Operating profit (excluding prior one-off gains) was reported at ₹912 crore, up 7% year-on-year and 25% sequentially. Net interest income (NII) rose to ₹1,657 crore and net interest margin (NIM) was 4.63%, compared with 4.51% in the previous quarter.

The bank also reported other income (excluding a one-off gain from sale of a strategic equity investment) at ₹1,050 crore and core fee income at ₹959 crore.

Asset quality, provisioning and capital position

Asset quality improved in the December 2025 quarter, with the gross NPA ratio falling to 1.88% from 2.32% in the preceding quarter. Net NPA was 0.55%, and the provision coverage ratio was reported at 93.2%.

Operating expenses in that quarter were ₹1,795 crore, while the cost-to-income ratio improved to 66.3% from 70.7% in the previous quarter. The bank reported a total capital adequacy ratio of 14.94% and an average liquidity coverage ratio (LCR) of 125%.

RBL Bank also said it operated 1,921 total touchpoints across India.

Why the context matters: FY25 profit volatility

The provided information also included FY25 results, which showed how provisions can swing quarterly profitability. In Q4FY25, RBL Bank reported net profit of ₹69 crore, with provisions and contingencies of ₹785 crore, and NIM of 4.89%. Asset quality metrics for that quarter included gross NPA of 2.6% and net NPA of 0.29%.

One report cited that after market hours on the Q4FY25 results day, the stock closed 5.73% lower at ₹188.09. Another data point in the same set noted the stock had climbed over 4% on a prior Friday to ₹324.5.

Key numbers investors tracked

What to watch next

For investors, the immediate focus will remain on whether the strong Q4FY26 operating momentum sustains, especially the pace of deposit growth and the quality of that growth as reflected in CASA and granular deposits. The RBI approval for Emirates NBD’s stake acquisition is another key development that the market will continue to track for subsequent steps.

RBL Bank’s disclosures also keep attention on asset quality and provisioning trends, given the sharp profit swings seen in FY25. Any further updates around the stake transaction and upcoming financial results will be the next formal milestones for the stock.