RBRBL Bank540065Banking

RBL Bank stock under pressure despite a good Q2, on margin pressure, rising provisions and cautious management commentary

By ScoutQuest · Tue 13 Oct 2026, 12:11 PM IST · 1 min read

Yield on advances

10.8 percent

Previous yield on advances

12.2 percent

Provisions increase

27 percent

Credit cost

63 basis points

Previous credit cost

54 basis points

Heard on business television between 12:14:00 - 12:17:00 IST.

• Yields on advances fell to 10.8% from 12.2% previously; provisions rose around 27% and credit cost rose to 63 bps from 54 bps.
• Secure retail loan growth was largely muted QoQ; bank assurance income (~300 crore annually) could see 150-170 crore impact if IRDAI distribution reforms are implemented.
• MFI slippages increased QoQ; management called Q2's ~42% loan growth an exception, expects normalization to 22-25% growth going forward.
• Management guided margin decline in Q3 FY27 due to undeployed surplus liquidity from FCNR deposits; opex seen rising due to branch expansion, with plans to add around 1,000 branches over next 2.5-3 years.
• Valuations: one-year forward PE ~1.13x, PB ratio ~1.41x versus five-year average of 0.9x, seen as slightly elevated.
• Goldman Sachs maintained a sell rating but hiked target price to 310 from 285, noting retail loan growth remained muted and deposit growth down ~1% excluding FCNR(B) deposits.

The call above is Goldman Sachs's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev