Update shared on 17 Nov 2025
Fair value Increased 6.55%Analysts have raised their price target for RBL Bank from ₹305.95 to ₹326.00. They cite an improved fair value estimate, supported by marginal enhancements in profit margin and a lower discount rate.
What's in the News
- Emirates NBD Bank PJSC has agreed to acquire a 26% stake in RBL Bank for approximately INR 120 billion. The deal has been approved by the Reserve Bank of India and is expected to close by December 26, 2025 (M&A Transaction Announcements).
- RBL Bank has announced a private placement of over 959 million shares at INR 280 per share, raising more than INR 268 billion. This transaction brings in Emirates NBD Bank PJSC as a new investor with a 60% stake (Private Placements).
- Shareholders approved an increase in authorized share capital at the bank's extraordinary general meeting. Amendments to the Memorandum and Articles of Association were also approved, granting special rights for director nomination to an identified shareholder (Changes in Company Bylaws/Rules).
- RBL Bank entered a bancassurance partnership with Life Insurance Corporation of India, enhancing access to life insurance products for customers through both digital and branch channels (Client Announcements).
- The bank's board approved raising up to INR 65 billion through equity and debt securities, following significant share price growth over the past six months (Seeking Financing/Partners).
Valuation Changes
- Fair Value Estimate has increased from ₹305.95 to ₹326.00, reflecting a moderate upward revision.
- Discount Rate has decreased slightly from 15.06% to 14.78%. This indicates lower perceived risk or higher confidence in future cash flows.
- Revenue Growth Projection has edged down marginally from 31.54% to 31.43%.
- Net Profit Margin has risen slightly from 22.64% to 22.73%.
- Future P/E Ratio has gone up from 7.68x to 8.11x. This suggests expectations of improved earnings or a premium valuation.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.