RBL Bank advances grow 40% in Q2 for FY27

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 RBL Bank Limited (!RBLBANK) reported 40% year-on-year growth in gross advances to ₹1.43 trillion as of September 30, 2026. Total deposits increased 34% to ₹1.56 trillion. What happened? On a sequential basis, advances grew 22% from ₹1.17 trillion in June, while deposits increased 25% from ₹1.25 trillion. Wholesale advances grew 55% year on year and 21% quarter on quarter. Retail and wholesale advances accounted for 56% and 44% of the loan book respectively. Why does it matter? The strong growth in both deposits and advances indicates significant expansion of the bank's balance sheet. However, CASA deposits grew 14% year on year to ₹425.3 billion while the overall deposit base grew faster. As a result, the CASA ratio declined to 27.2% from 31.9% a year earlier. My view The growth in advances is strong, but the quality and funding cost of that growth will matter more than the headline number. The lower CASA ratio suggests that a larger portion of funding is coming from other deposit sources. This can increase funding costs and put pressure on margins if loan yields do not compensate for it. The sharp increase in wholesale advances also makes the mix of lending important to monitor alongside asset quality. What I am watching next I would track net interest margin, cost of deposits, CASA ratio and asset quality in the detailed Q2 results. I would also watch whether wholesale growth remains balanced with retail growth and whether the higher loan book translates into sustainable profitability. No Recommendations Source: Business Standard Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in RBL Bank Limited.