India · Delayed Price · Currency is INR RBL Bank Earnings Call Transcripts
Fiscal Year 2026
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Advances and deposits grew strongly year-over-year, with improved asset quality and profitability. Capital infusion from Emirates NBD is set to further strengthen growth, while credit card slippages are expected to normalize in H2 FY 2027.
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Advances and deposits grew 14% and 12% YoY, respectively, with strong gains in secured retail and commercial banking. NIM improved to 4.63%, while credit card slippages remain elevated but are expected to normalize by September FY27. Capital infusion and branch expansion are set to accelerate growth.
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A $3 billion investment by Emirates NBD for a 60% stake will make the bank one of India's best capitalized, enabling accelerated growth, diversification, and expansion in retail, MSME, and corporate banking. Margins and ROA are set to improve, with normalization expected in stressed segments.
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Deposits and advances grew steadily, with a shift toward secured retail and commercial banking. Margins and profitability were pressured by loan repricing and higher collection costs, but improvement is expected from Q3, with a 1% exit ROA targeted for year-end.
Fiscal Year 2025
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FY 2025 saw robust growth in secured retail and commercial banking, offset by challenges in JLG and cards, with aggressive provisioning and risk controls implemented. FY 2026 guidance targets 16%-17% loan growth, improved ROA, and stable capital, with margin pressure expected in H1.
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Advances and deposits grew robustly year-over-year, but asset quality in unsecured segments remained under pressure, leading to elevated provisioning and subdued net profit. Improved collection efficiency and aggressive risk management are expected to normalize slippages and support a cleaner start to FY26.
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Advances grew 15% YoY, led by secured retail and granular deposits, but net profit fell 24% YoY due to higher provisions in cards and microfinance. Asset quality challenges are expected to normalize by Q4, with loan growth guidance maintained at 18-20% and ROA target of 1.3-1.4% for FY26.
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Advances grew 19% YoY and granular deposits rose 25% YoY, with net profit up 29% YoY. Asset quality remained stable despite temporary slippages in credit cards and microfinance, and guidance for loan and deposit growth remains intact.
Fiscal Year 2024
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RBL is discontinuing new co-branded credit card sourcing with Bajaj Finance, but will continue servicing the existing 3.4 million cards with no customer impact. The bank expects no material profitability change, is diversifying partnerships, and targets 10-15% annual credit card growth.