RBL Bank is utilizing the international network of its majority shareholder, Emirates NBD, to increase NRI deposits and trade finance. The bank recently reported a 27% rise in net profit to ₹254 crore and holds a strong capital adequacy ratio of 33.3%.
RBL Bank has launched a strategic push to expand its non-resident banking and trade finance operations by tapping into the global network of its new majority shareholder, Emirates NBD. This initiative allows the bank to leverage the presence of the Middle East-based lender to attract NRI deposits and facilitate cross-border business flows, particularly in trade corridors where Emirates NBD operates.
Scaling Operations With New Capital
Following a recent investment from Emirates NBD, RBL Bank has significantly strengthened its balance sheet, reporting a capital adequacy ratio of 33.3%. The bank has already secured approximately $150 million through the Foreign Currency Non-Resident (FCNR) deposit scheme. According to Managing Director and CEO R. Subramaniakumar, this infusion of capital is being used to replace expensive wholesale deposits with more cost-efficient liquidity, a move aimed at improving overall profitability.
The bank reported a net profit of ₹254 crore for the quarter ended June 2026, marking a 27% year-on-year increase. Net interest income, which is the difference between interest earned on loans and interest paid on deposits, rose 12% to ₹1,654 crore. Additionally, net advances grew by 23% to ₹1,16,223 crore, while total deposits saw an 11% increase to ₹1,24,829 crore.
Margin Outlook and Asset Quality
Profitability metrics remain a focus for the bank. For the quarter, the net interest margin—a key gauge of lending profitability—stood at 4.13%. CFO JD Pai has indicated that the bank expects margins to improve by 30 to 40 basis points in the coming quarter as the impact of the capital infusion and the replacement of high-cost debt fully reflect on the balance sheet.
Asset quality has also shown positive movement. The bank's gross non-performing assets, or bad loans, fell to 1.3% from 1.45% in the previous quarter. Net non-performing assets also improved to 0.37%. Furthermore, operating expenses were reduced by 8% compared to the same period last year, which helped the bank achieve a 31% increase in pre-provision operating profit.
Beyond NRI and trade finance initiatives, the bank intends to increase its lending to large corporates and accelerate growth in secured retail products, such as housing, gold, and business loans. Investors will likely track the bank's ability to maintain these margin improvements and how effectively it can integrate its product offerings with the Emirates NBD network in future quarters.