ICRA reaffirms RBL Bank ratings, enhances CD amount amid ENBD investment

RBL Bank Limited announced on December 17, 2025, that ICRA Limited has reaffirmed its short-term fixed deposit rating at [ICRA]A1+ and reaffirmed/assigned an enhanced amount for certificates of deposit. The Basel III Tier II Bonds and Fixed Deposit ratings continue on "Watch with Positive Implications" for long-term instruments. The aggregate amount rated for Certificates of Deposit increased from INR 6,000.00 crore to INR 10,000.00 crore, bringing the total rated amount across instruments to INR 10,070.00 crore.

This "Watch with Positive Implications" status stems from a proposed investment by Emirates NBD PJSC (ENBD) to acquire a 60% controlling stake in RBL Bank, involving approximately $3 bn (INR 26,850 crore) through a preferential issue. The transaction, approved by shareholders, awaits various statutory and regulatory clearances. Post-completion, ENBD will become RBL Bank's promoter, potentially improving the bank's cost of interest-bearing funds.

Despite comfortable capitalisation (CET I at 13.51% and CRAR at 15.02% as of September 30, 2025) and healthy growth in advances, RBL Bank's profitability continues to be weighed down by high credit provisions and operating costs. The bank reported a profit after tax of INR 379 crore for H1 FY2026, with net NPAs at 0.57%. The substantial equity infusion from the ENBD transaction is expected to support net interest margin and overall profitability.