Mumbai, India – Indian private sector lender RBL Bank (RATB.NS) reported a lower-than-expected profit for the third quarter ending December 31, marking its first earnings report since Dubai’s Emirates NBD acquired a majority 60% stake in the bank.
The bank posted a standalone net profit of 2.14 billion Indian rupees ($23.6 million) for the quarter, up from 326 million rupees during the same period last year. However, the result fell short of analysts’ expectations, which averaged 2.94 billion rupees, according to estimates compiled by LSEG from four analysts.
Profit Growth Driven by Lower Provisions
RBL Bank’s profits rose primarily due to a 46% reduction in provisions for bad loans and other contingencies, reflecting an improvement in asset quality and a cautious approach to risk management.
Net interest income, a key measure of a bank’s core lending profitability, grew 5% to 16.57 billion rupees in Q3, supported by 14% growth in loan disbursements. Retail lending, including mortgages and auto loans, contributed significantly to this increase. Meanwhile, the bank’s deposit base expanded by 12%, reinforcing its funding stability.
Strategic Shift in Lending Portfolio
Following the acquisition by Emirates NBD in October 2025 for $3 billion, one of the largest cross-border deals in India’s financial sector, RBL Bank has reshaped its lending strategy.
At a post-earnings briefing, CEO R. Subramaniakumar stated that the bank has slowed growth in unsecured loans, considered higher-risk, while focusing on mortgages, auto loans, and small business lending. The bank is also targeting services for non-resident Indians (NRIs), leveraging Emirates NBD’s global network.
“Our integration with Emirates NBD allows us to expand internationally and diversify our portfolio, while maintaining a strong focus on credit quality and sustainable growth,” Subramaniakumar said.
Asset Quality Shows Improvement
RBL Bank reported a gross non-performing asset (NPA) ratio of 1.88% at the end of December, down from 2.32% in September 2025. The improvement in asset quality reflects the bank’s careful lending practices and effective risk management measures.
Industry analysts have noted that the acquisition by Emirates NBD provides RBL Bank with additional capital and international expertise, positioning it for long-term growth in both domestic and cross-border markets.
Broader Context: Cross-Border Investments in Indian Banking
The Emirates NBD acquisition of RBL Bank is part of a broader wave of cross-border investment in India’s financial sector, following deals like Sumitomo Mitsui Banking Corporation’s 25% stake acquisition in Yes Bank. These transactions reflect growing investor confidence in India’s banking system and the potential for synergies between domestic lenders and international financial networks.
RBL Bank’s focus on retail and SME lending, along with its improving asset quality, positions it to benefit from India’s growing consumer market and increased digital banking adoption.
Key Metrics – RBL Bank Q3 2026
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net Profit | ₹2.14B ($23.6M) | ₹326M | +556% YoY |
| Analysts’ Expectation | ₹2.94B | – | – |
| Net Interest Income | ₹16.57B | – | +5% YoY |
| Loan Growth | 14% | – | – |
| Deposit Growth | 12% | – | – |
| Gross NPA Ratio | 1.88% | 2.32% | Improved |
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