RBL Bank–Emirates NBD $3 Billion Deal: Analyst Sees Long-Term Growth Despite Mixed Q2

• RBL Bank shares soared to a fresh 52-week high.
• Analyst views Emirates deal as a turning point that strengthens the balance sheet.
• Strong cost control, asset quality improvement, and a mega investment from Emirates have turned retail sentiment bullish.

RBL Bank shares surged 7% on Monday, hitting a fresh 52-week high after the bank reported earnings for the second quarter of the financial year (Q2FY26) and secured a massive deal with Emirates NBD, providing a capital infusion of $3 billion. 

Emirates NBD Bank will acquire a 60% stake in RBL Bank for approximately $3 billion (₹26,853 crore) through a preferential equity issuance of 96 crore new shares at ₹280 each, approved by the RBL Bank board. This deal marks the largest foreign direct investment (FDI) in the Indian banking sector. 

SEBI-registered analyst Front Wave Research noted that while standalone profitability saw year-on-year (YoY) declines, there were positive sequential inflections in net interest income (NII), and asset quality, alongside strong cost control. They added that the partnership with Emirates is a game-changer, positioning the bank for long-term stability and growth despite mixed quarterly operational results. 

RBL Bank Q2 Fineprint

Pre-provision operating profit (PPOP) growth was supported by a moderation in operating expenses. Operating Expenses fell by 5% quarter-on-quarter (QoQ), demonstrating strong cost control and aligning with management's guidance.

However, higher provisioning during the quarter weighed on profitability, resulting in a 20% year-on-year decline in profit after tax (PAT). Net Interest Income (NII) showed a sequential increase of 4.7% quarter-on-quarter (QoQ), suggesting stabilization in margins as guided.

Gross NPA % improved commendably to 2.32% from 2.78% in Q1 FY26 and 2.88% in Q2 FY25, Front Wave highlighted. 

Retail Banking segment's pre-tax loss significantly improved sequentially to (₹21.47 crore) from (₹166.52 crore) in Q1 FY26. The corporate/wholesale banking segment showed a strong rebound with PBT increasing 65.0% QoQ to ₹192.60 crore.

According to the analyst, the massive capital infusion of up to ₹26,853.28 crore by Emirates NBD fundamentally strengthens the balance sheet and addresses long-term capital concerns.

What is the retail mood on Stocktwits?

Data on Stocktwits showed that retail sentiment turned ‘bullish’ amid ‘high’ message volumes. 

RBL Bank stock remains under a ban in the futures and options (F&O) segment today.

RBL Bank has had a strong run in 2025, with its shares surging 104% year-to-date (YTD). 

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