Following Emirates NBD’s announcement of its intention to purchase a controlling position in the listed domestic private sector lender, RBL Bank’s shares surged by over 9%.
Following impressive earnings in the second quarter of the current fiscal year and ahead of the Diwali holidays, Indian banks’ shares surged and increased between 4 and 18 percent in the afternoon trading session. Following the announcement of Emirates NBD’s intention to purchase the bank’s controlling interest, RBL Bank surged more than 9%.
The BSE reports that shares of South Indian Bank increased 18.62% to Rs 38.74 per share in afternoon trading, shares of DCB Bank increased 13.43% to Rs 146.10 per share, and shares of Federal Bank increased 7.49% to Rs 228.30 per share.
Additionally, the shares of Bank of India, Bank of Maharashtra, Indian Bank, Indian Overseas Bank, Punjab National Bank, and Canara Bank all saw increases of 5.15 percent, 4.47 percent, 4.29 percent, and 4.92 percent, respectively.
The share price of DCB Bank rose as a result of favorable brokerage responses to the bank’s improved operational indicators and reduced credit costs. For the second quarter of FY26, the lender recorded a 19% increase in net profit to Rs 184 crore.
Brokers thought the performance was good. According to analysts at Anand Rathi Research, the bank is well-positioned for long-term development and profitability because of its focus on asset quality, operational efficiency, and a variety of revenue sources. Slippages excluding gold loans were 2.5 percent, according to Dolat Capital, and cutting this to 2 percent would help with operational costs.
According to Motilal Oswal Financial Services’ analysis, Punjab National Bank had an in-line quarter since rising provisions and reduced other revenue offset decreased opex. “We adjust our profit projections and anticipate RoA/RoE to be 1.03%/15.4% in FY27.”
Following Emirates NBD’s announcement of its intention to purchase a controlling position in the listed domestic private sector lender, RBL Bank’s shares surged by over 9%.
Earlier on October 18, Emirates NBD Bank and RBL Bank authorized the plan to sign final agreements for the Middle Eastern banking behemoth to purchase a majority share in the Indian private lender by means of a main injection of around $3 billion (roughly Rs 26,850 crore).
Moneycontrol was the first to announce on October 13 that Emirates NBD had advanced negotiations to purchase the bulk of RBL Bank in a massive planned deal that would lead to an open bid. According to the source, the purchase would probably go via the preferred route and would need RBI clearance.