RBL’s growth strategy is centred on leveraging Emirates NBD’s presence across overseas markets to build its liability franchise and expand transaction banking
RBL Bank plans to leverage its new promoter Emirates NBD’s international network to expand non-resident deposits and trade finance, as the private sector lender looks to deploy its strengthened capital base to drive growth and improve profitability.
The bank has already mobilised about $150 million under the FCNR(B) scheme and has rolled out an NRI banking proposition with Emirates NBD offering foreign currency banking at GIFT City, preferential remittance rates, wealth management and digital NRI banking, according to the investor presentation.
Deposits increased
For the quarter ended June 2026, RBL Bank reported a 27 per cent year-on-year increase in net profit to ₹254 crore. Net interest income rose 12 per cent to ₹1,654 crore, while net advances grew 23 per cent to ₹1,16,223 crore. Deposits increased 11 per cent to ₹1,24,829 crore. The bank’s capital adequacy ratio strengthened to 33.3 per cent following the Emirates NBD investment.
Managing Director and Chief Executive Officer R. Subramaniakumar said the bank had already begun deploying the fresh capital by replacing expensive liabilities. “For deployment of above capital, in the very short term, we have taken the opportunity to not renew some of the high-cost wholesale deposits and repay borrowings, this being the most efficient use of liquidity. However, over the next few quarters, we expect the normalized credit growth will consume this, therefore giving further fillip to our net interest income,” he said.
The bank’s growth strategy is centred on leveraging Emirates NBD’s presence across overseas markets to build its liability franchise and expand transaction banking.
“Build momentum on SCA for next few quarters through non-resident deposit flows that we expect to target in the Middle East and over time in all geographies where ENBD has presence. To support this, we are also strengthening our branch presence in the relevant geographies,” Subramaniakumar said.
The lender also sees opportunities in cross-border business. “We also see a significant opportunity to target the trade flows in the corridors where ENBD is present, where we should have some competitive advantage,” he said.
RBL Bank also plans to deepen relationships with large corporates that were earlier constrained by its funding profile and accelerate growth in secured retail products, including business loans, housing loans and gold loans, while increasing product penetration among existing liability and credit card customers.
Net interest margin
Net interest margin stood at 4.13 per cent during the quarter. Chief Financial Officer JD Pai said margins are expected to recover as the benefit of the capital infusion flows through the balance sheet. “30, 40 basis points improvement should be expected, at least in Q2,” he said.
Asset quality strengthened during the quarter, with gross non-performing assets declining to 1.3 per cent from 1.45 per cent in the previous quarter, while net NPAs improved to 0.37 per cent. Operating expenses fell 8 per cent year on year, helping pre-provision operating profit rise 31 per cent.
RBL Bank also said it will continue expanding secured retail lending, deepen relationships with large corporates that were previously difficult to serve because of funding constraints, and cross-sell more products to its existing liability and credit card customers as it seeks to improve returns over the medium term.
Published on July 17, 2026
