RBL Bank rises up to 2.5% as Citi's outlook on lender's margin expansion improves

RBL Bank rises up to 2.5% as Citi's outlook on lender's margin expansion improves

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Shares of RBL Bank rose up to 2.5% on September 25 after global brokerage firm Citi said the bank's lending margins, which bottomed out in June, are set to improve in September quarter.

Citi notes the lender's loan growth has been picking up through secured retail, commercial lending and that its microfinance disbursements now exceed repayments.

Core fee income is gradually building on the Q1 base and cost control initiatives are underway, with meaningful impact anticipated from H2FY26.

Citi reiterated its 'buy' call on the stock with a price target of Rs 300 per share, which implies an upside of up to 9% from current market price.

At 2:15 pm on September 25, RBL Bank shares on NSE were trading 1.5% higher at Rs 274.55 apiece after hitting day's high of Rs 277 earlier in the day.

Stress in the joint liability group (JLG) segment is easing, though credit card normalisation is taking longer, said Citi.

Citi has projected 4% QoQ, 11% YoY loan growth for RBL Bank.

The private lender's shares rose over 70% in 2025 so far while Bank Nifty rose 9% during the same period.

RBL Bank's annual general meeting (AGM) is scheduled for September 26. The board has approved a fundraising plan that includes a Rs 3,500-crore qualified institutional placement (QIP) and Rs 3,000 crore through debt securities, subject to shareholders' approval alongside other proposed resolutions.