RBL Bank shares up 5%, extend gains for second trading session. What’s fuelling the rally?

Shares of RBL Bank Ltd rose up to 5% to hit an intraday high of Rs 305 on the NSE on Wednesday, October 15, after Emirates NDB Bank PJSC, the UAE’s second-largest lender, entered advanced talks to invest Rs 15,000 crore ($1.7 billion). The move, if successful, will make Emirates NDB Bank PJSC the largest controlling shareholder of RBL. Shares of RBL Bank have now risen for a second consecutive session.

The investment will be in the form of preferential allotment of equity shares and warrants, to be followed by an open offer for an additional 26%. The entire investment will be through primary infusion of capital to help recapitalise the bank. RBL’s current market capitalisation is nearly Rs 18,000 crore. Upon completion of the process, Emirates NBD is expected to end up owning 51% of the expanded equity capital base.

The transaction will expand Emirates NBD PJSC's footprint in Asia and help make a strong play for the high-growth India-West Asia remittance market.


Kolhapur-based RBL is 100% publicly owned, with several domestic institutions and mutual funds holding small stakes.

Q1 Performance Snapshot

The private sector lender reported a standalone net profit of Rs 200.33 crore for the first quarter ended June 2025, a 46% year-over-year decline compared to a profit of Rs 371.52 crore in the corresponding quarter of last year, as weaker interest income and rising expenses weighed on its performance.

RBL Bank's net interest income (NII) fell 13% YoY to Rs 1,481 crore from Rs 1,700 crore a year ago, and declined 5% sequentially compared to Rs 1,563 crore in the March 2025 quarter. The bank’s net interest margin (NIM) for Q1 FY26 stood at 4.50%.

Operating profit declined 18% YoY to Rs 703 crore, with the bank attributing the contraction to a reduction in unsecured lending.

Also read: Nifty glitters before Diwali; post-Diwali fizzle may be just a market myth

At about 12:25 pm, shares of the company were trading at Rs 300, higher by 3% from the last close on the NSE. RBL Bank shares have rallied an impressive 92% on a year-to-date basis and are up over 65% in the last 6 months.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)