RBL Bank lets deposits shrink 10%, CASA ratio slips below 30%
A deliberate wholesale deposit runoff after the ₹26,016 cr Emirates NBD capital infusion lowered total deposits to ₹124,813 cr, but the 22% QoQ CASA slump pushed the ratio to 29.2%, potentially squeezing NIMs.
— 4 earlier stories on RBL Bank Ltd. →What's new
- Total deposits fell 10% QoQ to ₹124,813 cr; CASA deposits slumped 22%.
- CASA ratio fell from 33.6% to 29.2% after the bank chose not to renew wholesale deposits.
- Gross advances grew 2% QoQ; secured retail advances rose 18% YoY, wholesale 37%.
Why this matters
The bank frames the deposit runoff as tactical, post-infusion, but the sharp CASA erosion to 29.2% signals deposit franchise pressure. For a bank with a trailing ROE of 4.8%, lower CASA could compress NIMs, offsetting the benefit of the massive capital injection.
What we're watching
- Q1 final results and NIM trajectory.
- Whether deposit growth resumes in Q2 or the franchise share loss persists.
- Retail deposit mobilization efforts under the new promoter.
The full read
RBL Bank's first quarterly update since the ₹26,016 cr Emirates NBD infusion shows a deliberate reshaping of its deposit base. Total deposits fell 10% QoQ to ₹124,813 cr, driven by a conscious decision not to renew wholesale deposits. That is the tactical part. But the CASA story is different. Low-cost deposits slumped 22% QoQ, pushing the CASA ratio from 33.6% to 29.2%. For a bank with a trailing ROE of just 4.8%, every basis point counts. Advances grew a modest 2% QoQ, with secured retail up 18% YoY and wholesale up 37% YoY on commercial banking. The bank frames the balance-sheet reshaping as strategic, but the deposit franchise clearly took a hit. The open question is whether the CASA erosion is temporary or a sign of competitive weakness under new ownership.
Questions answered
- Why did RBL Bank's deposits fall 10% sequentially?
- The bank deliberately did not renew certain wholesale deposits after receiving ₹26,016 cr from Emirates NBD, citing ample liquidity. Total deposits dropped to ₹124,813 cr.
- How did the CASA ratio change and why does it matter?
- CASA ratio fell from 33.6% to 29.2% as CASA deposits slumped 22% QoQ. Since CASA is low-cost, a lower ratio can compress net interest margins.
- What is the loan growth and mix?
- Gross advances grew 2% QoQ to ₹117,344 cr. Retail secured advances rose 18% YoY and wholesale 37% YoY. The retail-to-wholesale mix is 55:45.
- How does the Emirates NBD capital infusion relate to this update?
- The ₹26,016 cr infusion, completed on June 18, gave the bank excess liquidity, allowing it to let wholesale deposits run off. It also boosted capital ratios.
- What is the Liquidity Coverage Ratio?
- The provisional LCR stood at 133%, down modestly from the previous quarter, indicating sufficient high-quality liquid assets.
RBL Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on RBLBANK →- 3 Jul 2026 · 4:38 PM IST RBL Bank lets deposits shrink 10%, CASA ratio slips below 30%
- 14d ago RBL Bank gets top Crisil rating after Emirates NBD infusion
- 18d ago Emirates NBD takes control of RBL Bank with 60% stake, infuses ₹26,015.77 cr
- 24d ago RBL Bank makes Bhavin Lakhpatwala permanent CFO
- 31d ago RBL Bank adds Emirates NBD's ex-group CFO to its board