RBL Bank Limited

Financial Services — Banks - Regional · NSE

₹378.25+₹4.10 (+1.10%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of RBL Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RBL Bank Limited operates as a scheduled commercial bank in India. It operates through Corporate/Wholesale Banking; Retail Banking; Treasury; and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees22,857

Annual revenue₹10,495 Cr

How does it make money?

Turns over ₹10,495 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit. Each of its 22,857 employees supports ₹45.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

20 analysts covering the stock expect revenue to grow about 21.5% and earnings to grow about 30.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.5%

Est. earnings growth+30.9%

Analysts20

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +41% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+41%

Margin effect-32%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 12.2% is steady
✗ Profit has declined at 1.5% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.3x

3Y Median

17.0x

40 monthly readings · mean 18.6x · range 7.5x–31.9x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 60% above its 3y median of 17.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 61% above the peer median of 17.0x.

vs. its own history

Expensive

17.0x median over 40 months · +60%

vs. sector peers

Expensive

17.0x median of 4 peers · +61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

10.50

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 60% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.2% CAGR
Latest reported year was 23.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✗ 4.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 17.0x✗ 27.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹58,715 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

27.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹13.85

Profitable

Profitable on a per-share basis

ROE

4.0%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

23.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.6%

Modest

Slow profit growth

Dividend Yield

0.26%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7,344 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

0.6%

Weak

Assets generate little profit

Operating Margin

26.6%

Good

Healthy core-business profitability

Net Margin

14.1%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

406.3 / 399.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,438 Cr	₹9,104 Cr	₹10,407 Cr	₹10,495 Cr	+12.2%
PAT (Net Profit)	₹920 Cr	₹1,260 Cr	₹717 Cr	₹879 Cr	-1.5%
EPS	₹15.27	₹20.54	₹11.76	₹14.09	-2.6%
ROE	6.8%	8.5%	4.6%	5.3%	—
Total Debt	₹11,986 Cr	₹14,907 Cr	₹14,515 Cr	₹17,751 Cr	+14.0%
Free Cash Flow	-₹11,276 Cr	₹4,751 Cr	-₹1,117 Cr	₹7,344 Cr	—

🟢 Revenue has grown at 12.2% a year over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.5% a year).

🔴 EPS has shrunk at 2.6% a year over 3 years.

🔴 ROE has fallen from 6.8% to 5.3% over 3 years (-1.5 pts).

🔴 Total Debt has grown at 14.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹11,276 Cr to ₹7,344 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.81 L Cr

Total Liabilities

₹1.64 L Cr

Cash & Equivalents

₹23,066 Cr

Operating Cash Flow

₹7,578 Cr

Capex

-₹235 Cr

Shareholding (proxy)

Institutional Holding

17.4%

Insider Holding

59.9%

Corporate Actions

Next Earnings

12 Oct 2026

Dividend Rate

₹1

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

9 Buy · 3 Hold · 8 Sell

Target Price (Mean)

₹416.25

+10.0% vs CMP

Target Range

₹300 – ₹505

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

5 mixed1 general

RBL Bank shares plunge 8% despite 170% jump in Q2 profit. Should you buy, sell or hold?

The Economic Times, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

RBL Bank stock plunges 9% despite nearly tripling Q2 profit; here's why brokerages remain cautious

Moneycontrol.com, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RBL Bank plunges 8% even as Q1 profit zooms 170% YoY; analysts bullish

Business Standard, 13 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RBL Bank shares tumble over 8% despite 170% YoY growth in Q2 profits; here’s what's weighing down the stock

Upstox, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

RBL Bank shares: Q2 beat, yet Goldman Sachs says sell; CLSA, Citi, Morgan Stanley targets

Business Today, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RBL Bank meets Girik Capital, MK Ventures; no UPSI shared

scanx.trade, 18 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Risk

MiddlingFinancial Health · Profitability · Valuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 17.0x · see Key things to watch ↑