Why Did RBL Bank Share Price Zoom 10% Despite 76% Fall In Net Profit? Should You Buy?

RBL Bank Share Price Today: Shares of RBL Bank surged 10% on Monday, closing at Rs 207.20, despite the bank reporting a 76% drop in consolidated net profit for the January-March quarter.

The city-based lender’s net profit for Q4 FY25 stood at Rs 86.99 crore, down from Rs 364 crore a year earlier.

RBL Bank Q4 Results 2025 Highlights

This decline was primarily driven by setbacks in unsecured lending, particularly in the microfinance (MFI) and credit card portfolios.

However, the bank’s strategic moves seem to be driving investor confidence. RBL Bank’s provisions increased significantly to Rs 785 crore due to the stress in its MFI and credit card books. Yet, the bank has hinted that it may not need to make higher provisions going forward.

The CEO also mentioned that the bank is targeting robust credit growth in FY26, particularly focusing on secured loans, which are expected to provide stability and support profitability.

Despite the tough quarter, RBL Bank’s clean-up efforts have resulted in a historical low in its net non-performing assets (NNPA) ratio at just 0.3%. This improvement in asset quality, combined with healthy provisions, has helped the bank manage profitability better than expected.

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Additionally, the bank expects a gradual recovery in its growth trajectory, with a focus on expanding its secured portfolio, including retail and SME loans.

RBL Bank Share Price Target 2025

Brokerage firm Emkay has maintained a ‘BUY’ rating on the bank, setting a target price of Rs 225. Emkay highlighted that the bank’s credit growth will likely improve in FY26, supported by rate cuts and a shift toward secured lending.

This, along with better asset quality, is expected to drive up return on assets (RoA) in the coming years, providing a strong outlook for RBL Bank.