RBL Bank’s net profit leapt to ₹481.7 crore in Q2FY27, a 169‑percent jump from ₹179 crore a year earlier, and the share price fell 7% to ₹390.3 after three brokerages downgraded the stock—Axis Capital, ICICI Securities, and Investec—on Tuesday.
Net interest income grew 37.4% YoY to ₹2,131 crore, and the bank’s gross NPA fell to 1.02% from 1.3%, while net NPA dropped to 0.29% from 0.37%. Provisions climbed to ₹766.5 crore from ₹499.7 crore, a 53% rise that could weigh on future earnings.
Citi keeps a “Buy” rating with a ₹505 target, implying a 21% upside; IIFL also bullish, targeting ₹475 for a 13.7% gain. In contrast, CLSA and Goldman Sachs stay bearish, each pegging the stock at ₹310 and citing valuation overhang. The spread between the highest and lowest targets is 195 rupees, a 63% swing.
The bank’s operating margin widened by 48 basis points, and analysts project loan growth to exceed 35% in FY27, holding above 20% in FY28–FY29. Yet the higher provisions and the fact that earnings per share rose only 7% despite a 2.7‑fold profit increase have tempered optimism.
RBL’s next earnings call is slated for October 30, and the board has yet to issue a forward guidance package. Analysts expect FY28 loan growth to stay above 20%, but the bank’s debt‑to‑equity ratio remains a point of concern.
Despite the 7% dip, RBL Bank is up 24% YTD, and the market is watching closely for how the bank will balance aggressive loan growth with rising provisioning costs. The stock is currently trading 6.6% lower than its Tuesday close, giving investors a fresh point of entry amid the split consensus.