RBL Bank has outlined an optimistic outlook for margin expansion, aiming to raise its Net Interest Margin (NIM) by 10–15 basis points each quarter to reach 4.75–4.80% by March 2026. The bank shared its projections and business outlook following the release of its unaudited financial results for the quarter and half year ended September 30, approved by the Board on October 18, with an earnings call held on October 19.
Focus on Margin Expansion
RBL Bank’s strategy centers on improving profitability through a steady rise in NIM. The bank expects quarterly NIM growth in the range of 10–15 bps, driven by a better asset mix, optimized funding costs, and disciplined lending practices.
| Metric | Target |
| Quarterly NIM Increase | 10–15 basis points |
| NIM Target by March | 4.75–4.80% |
Credit Card Portfolio Outlook
While the overall outlook remains positive, the bank expects credit card slippages to stay elevated for another 1–2 quarters before stabilizing. Management noted that recovery measures and portfolio diversification are underway to mitigate the short-term impact and strengthen asset quality.
Transparency and Governance
RBL Bank reaffirmed its commitment to transparency by making audio recordings and transcripts of its latest earnings call publicly available on its website. The disclosures reflect the bank’s proactive communication and focus on building investor confidence.
Strategic Outlook
The bank’s continued focus on margin improvement and credit quality management underscores a balanced approach toward sustainable growth. Analysts will be watching upcoming quarters closely to assess RBL Bank’s ability to achieve its NIM targets while navigating short-term challenges in its credit card business.
Summary:
RBL Bank aims to achieve a NIM of 4.75–4.80% by March 2026, with incremental quarterly improvements. While credit card slippages may remain high in the near term, the bank’s consistent focus on asset quality, transparency, and margin expansion positions it well for steady profitability growth.
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