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RBL Bank reported mixed business performance in Q1FY27

ICICIdirect Research 06 Jul 2026 DISCLAIMER

News: RBL Bank reported mixed business performance in Q1FY27 (provisional), with gross advances rising to ₹1,17,344 crore, up 21% YoY (2% QoQ). Total deposits stood at ₹1,24,813 crore, up 11% YoY, though declining 10% QoQ, primarily due to the bank’s tactical decision to not renew certain wholesale deposits following the preferential allotment to Emirates NBD. Deposits below ₹3 crore increased to ₹65,364 crore, up 13% YoY (2% QoQ), reflecting continued granularity in the liability franchise. CASA deposits stood at ₹36,462 crore, broadly flat YoY but declined 22% QoQ, leading to the CASA ratio moderating to 29.2% (vs 33.6% in Q4FY26). The liquidity coverage ratio (LCR) improved to 133% from 130% in Q4FY26.

View: The sequential decline in deposits largely reflects a conscious strategy to reduce reliance on wholesale funding rather than underlying franchise weakness. Continued growth in granular deposits, healthy loan growth and a stronger liquidity position suggest the bank is prioritising balance sheet quality over near-term balance sheet expansion. The pace of CASA rebuild and liability mobilisation will remain key monitorables going forward.

Impact: Neutral

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