Why RBL Bank Shares Fell Over 7% on January 19, 2026?

On January 17, 2026, RBL Bank shares fell over 7%, to the day's low of ₹297.40 at 11:03 AM, after opening at ₹312.95 on BSE. This marks the RBL Bank’s shares largest single-day drop since June 2024. The decline comes in the wake of the bank’s quarterly results released over the weekend.

Key Reasons Behind the Decline

Rising Credit Costs

A major driver of the fall was a sharp increase in credit costs, which rose 40 basis points sequentially in the December quarter, reaching nearly 2.5%. This uptick was primarily due to higher write-offs in the bank’s credit card portfolio.

Higher Provisions Impact Profitability

RBL Bank’s net profit of ₹214 crore fell short of analyst expectations, which were over ₹260 crore. Profitability was hit by elevated provisions, which rose 28% quarter-on-quarter, climbing to ₹639 crore from ₹500 crore. Additionally, the bank recorded a one-time expense of ₹32 crore related to new labor laws.

Management Signals Caution

RBL Bank’s management highlighted ongoing challenges in the credit card portfolio, noting that macroeconomic pressures could lead to continued slippages in the next two quarters.

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In reflecting on this quarter’s performance, Mr R Subramaniakumar, MD & CEO, RBL Bank, remarked, “Q3 FY26 marks another quarter of stable and consistent operational performance for the Bank. We continued to deliver strong growth in our focus areas, with secured retail advances and commercial banking driving asset side expansion, while granular deposits supported the liability side. The collection efficiency in our JLG business has materially improved, and disbursal run rates are now close to normalised levels. 

Our core operating engine remains robust, anchored in disciplined execution, aprofitable Balance Sheet, and a sharper cross-sell to our existing customer base. During the quarter, the Bank received shareholder approval for capital infusion by Emirates NBD PJSC and for theamalgamation of its Indian branches with RBL. The Bank is awaiting regulatory approvals for the same.”

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