Motilal Oswal Recommends 'BUY' on RBL Bank with INR 370 Target Price

• RBL Bank reported a 3QFY26 PAT of INR 2.1 billion, a 20% miss due to higher provisions, but up 20% QoQ.
• Net Interest Income (NII) grew 4.6% YoY/6.9% QoQ to INR 16.6 billion, with Net Interest Margins (NIMs) expanding 12 basis points QoQ to 4.63%.
• The bank expects NIMs to improve slightly in 4Q despite a potential repo rate cut, aided by reduced Cost of Funds (CoF).
• Operating expenses were in line, and steady fee income led to a 6% beat in other income, reducing the Cost-to-Income (C/I) ratio to 66.3%.
• Motilal Oswal reiterates a 'BUY' rating with a Target Price of INR 370, based on 1.3x Sep’27E Adjusted Book Value (ABV).

Why It Matters: Motilal Oswal recommends buying RBL Bank, setting a target price of INR 370 despite near-term provision impacts.