RBL Bank to leverage Emirates NBD network for NRI deposits, trade finance

RBL’s growth strategy centres on using Emirates NBD’s overseas network to strengthen its liability business and grow transaction banking

RBL Bank intends to tap Emirates NBD’s global footprint, via its new promoter, to boost non‑resident deposits and trade finance, deploying its reinforced capital to spur growth and lift profitability.

The bank has already attracted roughly $150 million through the FCNR(B) scheme and launched an NRI banking offering together with Emirates NBD, providing foreign‑currency services at GIFT City, preferential remittance rates, wealth management and digital NRI banking, as noted in the investor presentation.

Deposit growth

For the quarter ended June 2026, RBL Bank posted a 27 % year‑on‑year rise in net profit to ₹254 crore. Net interest income climbed 12 % to ₹1,654 crore, while net advances grew 23 % to ₹1,16,223 crore. Deposits rose 11 % to ₹1,24,829 crore. The capital adequacy ratio improved to 33.3 % after the Emirates NBD investment.

Managing Director and Chief Executive Officer R. Subramaniakumar said the bank has started putting the fresh capital to work by swapping out costly liabilities. “For deploying this capital in the short term, we have opted not to renew some high‑cost wholesale deposits and to repay borrowings – the most efficient use of liquidity. Over the coming quarters, we anticipate normalised credit growth will absorb this liquidity, further boosting net interest income,” he said.

The bank’s growth plan hinges on leveraging Emirates NBD’s overseas reach to build its liability franchise and expand transaction banking.

“We aim to build momentum on SCA over the next few quarters by attracting non‑resident deposit inflows, initially targeting the Middle East and later expanding to all regions where ENBD operates. To facilitate this, we are also strengthening our branch footprint in those markets,” Subramaniakumar said.

The lender also spots opportunities in cross‑border business. “We see a sizable chance to capture trade flows in the corridors where ENBD is present, giving us a competitive edge,” he added.

RBL Bank also intends to deepen ties with large corporates that were previously limited by its funding capacity, accelerate growth in secured retail products such as business, housing and gold loans, and increase product penetration among its existing liability and credit‑card customers.

Net interest margin

Net interest margin stood at 4.13 % for the quarter. CFO JD Pai said margins are expected to recover as the capital infusion feeds through the balance sheet. “A 30‑ to 40‑basis‑point improvement is realistic, at least for Q2,” he noted.

Asset quality improved during the period, with gross non‑performing assets falling to 1.3 % from 1.45 % in the prior quarter, while net NPAs eased to 0.37 %. Operating expenses dropped 8 % year‑on‑year, helping pre‑provision operating profit rise 31 %.

RBL Bank also said it will keep expanding secured retail lending, deepen relationships with large corporates that were previously hard to serve because of funding constraints, and cross‑sell more products to its existing liability and credit‑card customers as it seeks to improve returns over the medium term.

Published on July 17, 2026