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RBI approves SBI Mutual Fund to acquire up to 9.99% stake in RBL Bank

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RBI approves SBI Mutual Fund to acquire up to 9.99% stake in RBL Bank
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Athira Sethu

Kochi, 26 Feb 2026

RBL Bank Ltd on Wednesday (February 25) said Reserve Bank of India (RBI) has approved SBI Mutual Fund to acquire up to 9.99% stake in the bank, subject to specified conditions. The approval, granted via letter dated February 25, 2026, allows the fund one year to complete the acquisition. The development comes alongside the bank’s December quarter earnings, where profit missed estimates despite steady asset quality improvement.

RBI Approval Details

ParticularsDetails
Approving AuthorityReserve Bank of India
ApplicantSBI Mutual Fund
TargetRBL Bank Ltd
Approved HoldingUp to 9.99% of paid-up share capital or voting rights
Approval DateFebruary 25, 2026
Mode of ReceiptEmail
Time Limit for AcquisitionWithin one year from RBI letter date
Key ConditionHolding must not exceed 9.99% at any time
Additional ClauseIf holding falls below 5%, prior RBI approval required to raise stake to 5% or more
Current Holding (as of Feb 20, 2026)1.88%

Q3 FY26 Financial Performance

MetricQ3 FY26Street EstimateQ3 FY25YoY Change
Net Profit₹214 crore₹265 crore₹33 croreHigher YoY, below estimate
Net Interest Income (NII)₹1,657.2 crore₹1,640 crore₹1,585 crore+4.5% YoY

Asset Quality

MetricQ3 FY26Q2 FY26Change
Net NPA₹567 crore₹572.4 croreDeclined
Net NPA Margin0.55%0.57%Improved sequentially

Stock Market Reaction

Closing Price (BSE)ChangePercentage Gain
₹329.65+₹4.35+1.34%

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