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RBL Bank Share Price Today: Mumbai-based RBL Bank Ltd. shares jumped 7 per cent on Monday, October 20, following the announcement of the bank’s Q2FY26 results. The stock is under a ban in the futures and options (F&O) segment today.

The bank reported net interest income (NII) largely in line with expectations, supported by a small sequential increase in net interest margin (NIM) to 4.51 per cent from 4.50 per cent. Pre-provision operating profit (PPOP) improved due to lower operating expenses. However, higher provisions for the quarter led to a 20 per cent year-on-year decline in profit after tax (PAT).

In a historic move, Emirates NBD Bank will invest up to Rs 26,853 crore (approximately $3 billion) to acquire a 60 per cent stake in RBL Bank via a preferential equity issue at Rs 280 per share. The RBL Bank board has approved the issuance of 96 crore new equity shares.

This deal sets several industry milestones:

1) Largest foreign direct investment (FDI) in Indian financial services.

2) Biggest equity fundraising by an Indian bank.

3) First foreign bank to acquire a majority stake in a profitable private sector bank.

Emirates NBD will also make a mandatory open offer for up to 26 per cent additional stake at the same price. The boards have approved merging Emirates NBD’s India branches with RBL Bank, in line with RBI guidelines.

The transaction will triple RBL Bank’s net worth from Rs 15,000 crore to around Rs 42,000 crore. Analysts expect it to:

1) Boost branch expansion, digital initiatives, and customer engagement.

2) Strengthen credit rating and reduce cost of funds.

3) Bring Emirates NBD’s global expertise and governance practices.

An Extraordinary General Meeting (EGM) is scheduled for November 12 to approve the preferential issue.

RBL Bank management highlighted that the partnership will allow the bank to expand NRI accounts and distribution networks. Emirates NBD’s ROE of 19–20 per cent is seen as a benchmark for RBL Bank’s future growth.

Global brokerages have reacted positively:

Citi: Buy, target Rs 390; sees the stake acquisition as a major positive.

IIFL Finance: Buy, target Rs 375; expects credit rating upgrades and expansion in corporate and wealth banking.

Motilal Oswal Financial Services: Buy, target Rs 350; raised earnings estimates factoring the Emirates NBD investment.

RBL Bank shares ended Friday at Rs 299.70, down 2.30 per cent, but are up 90 per cent so far in 2025, reflecting strong investor confidence.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff