RBL Bank Share Price: Citi sees 30% upside but warns of lingering card stress

Brokerage firm Citi has maintained a 'Buy' rating on RBL Bank, with a price target of ₹390 per share, which implies an upside of about 30% from Tuesday's closing price.

According to Citi, the bank has a huge scope to accelerate growth across product verticals while diversifying its income streams.

It also expects RBL Bank's cost of funds to ease, aided by equity augmentation and the possibility of a credit rating upgrade following the merger.

Slippages in the microfinance portfolio are seen moderating, which should help bring down the overall slippage run rate. However, stress in the credit cards portfolio is likely to persist, with slippages expected to remain elevated and may take another three to four quarters to fall below ₹500 crore.

Separately, Emirates NBD Bank is set to acquire a 60% stake in RBL Bank for $3 billion, or about ₹26,850 crore, through a preferential equity issuance priced at ₹280 per share.

This transaction marks the largest foreign direct investment in India's financial services sector.

Among the 21 analysts tracking RBL Bank, 12 have a 'Buy' rating on the stock, while six recommend 'Hold' and three have a 'Sell' call.

Shares of RBL Bank were trading 1.30% lower on Wednesday at ₹296.80. Despite the decline, the stock has surged nearly 90% so far in 2025.