RBL Bank Flags Credit Card Stress To Continue In H1 FY27; Shares Fall

RBL Bank said stress in its credit card business will remain elevated through the first half of financial year 2027, even as the bank posted a sharp jump in quarterly profit on the back of a low base from the previous year.

Net profit for the quarter more than tripled to ₹230 crore, while net interest income grew 6.9% year-on-year to ₹1,671 crore. The profit jump was driven largely by a weak comparable quarter rather than a fundamental improvement in the business.

RBL Bank shares fell 3.42% to ₹310.40 as of 10:35 AM on April 27. The stock's 52-week high stands at ₹340.40, meaning shares are currently trading roughly 8% below that peak.

What Management Said

The bank's management hinted that the credit card stress is not going away in the near term. The first half of FY27 will remain under pressure, with improvement expected only from the second half. Management is targeting credit card slippages moving toward the 7% to 7.5% range in H2 FY27, with credit costs settling at 5.5%.

On microfinance, the bank said stress has peaked and expects provisions to start declining once lower slippages flow through the book. That is a more constructive signal than what the bank was saying a few quarters ago.

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What Brokerages Think

A renowned brokerage house described the quarter as tough. It noted that profit before tax came in 20% below its estimates. The only positives it highlighted were growth in both loans and deposits.

Source:

CNBC