RBL Bank shares drop 7% as analysts split after Q2 results

what happened

According to cnbctv18.com, RBL Bank shares fell more than 7% on Tuesday, October 13, after three brokerages cut their ratings. The firms cited concerns over the bank’s valuation and the durability of its earnings recovery. Net profit in Q2FY27 nearly tripled year on year to ₹481.7 crore from ₹179 crore, while net interest income rose 37.4% to ₹2,131 crore.

Asset quality also improved. Gross non-performing assets declined to 1.02% from 1.3% in the previous quarter, while net non-performing assets fell to 0.29% from 0.37%. However, provisions climbed to ₹766.5 crore from ₹499.7 crore a year earlier, potentially putting pressure on the earnings outlook.

Citi and IIFL retained their “Buy” ratings, with price targets of ₹505 and ₹475. CLSA kept its “Underperform” call and Goldman Sachs retained “Sell”; both set targets of ₹310. Axis Capital cut RBL Bank to “Reduce” from “Add” with a ₹400 target. ICICI Securities downgraded it to “Add” from “Buy” but raised its target to ₹460, while Investec moved to “Hold” from “Buy” and kept its ₹440 target.

The stock fell as much as 7.11% to an intraday low of ₹388 and was later down 6.6% at ₹390.3. Despite Tuesday’s decline, RBL Bank shares remained 24% higher so far this year.

why it matters

The ₹310–₹505 range in broker targets highlights the market’s sharply divided view on whether the bank’s earnings recovery is already reflected in its valuation.

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