RBL Bank shares tumble over 8% after Q3 profit misses estimates

RBL Bank Share Price Today: Shares of RBL Bank shares traded in red on Monday after the lender reported a lower-than-expected bottom line for the December quarter (Q3FY26). The stock fell as much as 8.46 per cent during intra-day trade to Rs 297.15, marking its steepest single-day decline since October 21, 2024.

By 11:42 am, RBL Bank shares were trading 7.3 per cent lower at Rs 300.80, significantly underperforming the broader market, with the Nifty 50 down 0.62 per cent. Despite Monday’s fall, the stock snapped a three-day losing streak and was trading at 7.8 times its 30-day average volume, indicating heavy activity. The stock is down 4.8 per cent year-to-date, compared with a 2.2 per cent decline in the Nifty, and the bank’s market capitalisation stands at Rs 18,545.55 crore.

Also read: BHEL Q3FY26 Results: Profit jumps 191% on strong margins, beats estimates despite revenue miss

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RBL Bank Q3FY26 results

RBL Bank reported a profit after tax of Rs 214 crore for Q3FY26, marking a 20 per cent miss versus Motilal Oswal’s estimates, although profit rose 20 per cent quarter-on-quarter, largely due to higher-than-expected provisions. The earnings miss was partly offset by stronger other income, the brokerage noted.

Net interest income (NII) increased 4.6 per cent year-on-year and 6.9 per cent sequentially to Rs 1,660 crore, in line with expectations. Net interest margin (NIM) expanded 12 basis points QoQ to 4.63 per cent.

Other income rose 13 per cent QoQ but declined 2 per cent YoY to Rs 1,050 crore, beating estimates by 6 per cent, driven by healthy fee income. Treasury gains jumped sharply to Rs 91.3 million, compared with Rs 6.7 crore in the previous quarter. Overall, total revenue grew 2 per cent YoY and 9 per cent QoQ to Rs 2,700 crore.

RBL Bank shares: Should you buy, sell or hold

Motilal Oswal said it has cut its FY26 earnings estimate by 7 per cent to factor in elevated near-term provisions, while maintaining its earnings forecasts for FY27 and FY28. The brokerage noted that the earnings miss was driven by higher provisions, even as pre-provision operating profit remained healthy, supported by stronger other income.

Business growth remained modest during the quarter. However, the bank has guided for wholesale advance growth of 20–25 per cent YoY and retail advance growth of 25–30 per cent YoY, while planning to expand its unsecured loan book at a calibrated pace.

Motilal Oswal added that a comfortable credit-deposit ratio and the expected capital infusion from Emirates NBD should support stronger credit growth ahead. With an aggressive provisioning approach, the brokerage expects gradual improvement in asset quality, with slippages likely to moderate as conditions in unsecured lending improve.