RBL Bank Share Price Declines 2% Amid Ongoing GST Search Operations

Market Performance

On March 4, 2025, shares of RBL Bank declined approximately 2.1%, trading at ₹151.89 during morning hours. This movement followed reports of search activities initiated by the Maharashtra State GST Department at multiple bank locations.

Main News

Search operations were initiated under Section 67 of the Maharashtra Goods and Services Tax (MGST) Act, 2017. These procedures involved three offices of RBL Bank within the state. The bank confirmed through an official exchange communication that the search activities are ongoing and reiterated full cooperation by supplying necessary information as requested by authorities.

Company Details

Leadership Changes

RBL Bank recently restructured its senior management team as part of its strategic goals focused on enhancing operations and customer engagement:

• Narendra Agrawal was appointed President and head of Branch Banking and Retail Liabilities. He brings over 25 years of experience in areas such as deposits, lending, distribution, and payments. His role encompasses driving deposit growth and strengthening branch banking integration.
• T.S. Pari assumed the position of Chief Operations Officer (COO), with responsibilities geared towards improving operational efficiency, reinforcing customer-focused strategies, and enhancing risk management practices. Pari also brings in leadership positions in foreign and private banking sectors.

These appointments align with the bank's broader objectives of advancing its retail banking operations and operational framework.

Financial Performance (Q3 FY2025)

For the third quarter of the financial year 2025, RBL Bank reported the following financial figures:

• Net Profit: ₹32.63 crore, reflecting an 86% decline compared to the same quarter in the previous year.
• Sequential Net Profit: Decreased by 85% compared to the preceding quarter.
• Gross NPA Ratio:
  • 2.92% as of December 31, 2024
  • Compared to 2.88% as of September 30, 2024
  • And 3.12% as of December 31, 2023

Summary

RBL Bank Share Price experienced a decline following the initiation of GST search operations at multiple branches under the MGST Act, 2017. The bank confirmed its full cooperation with authorities during the ongoing proceedings. Additionally, RBL Bank has undertaken significant changes within its leadership team, aiming to strengthen its retail banking services and operational capabilities. The recent financial results indicated a substantial year-on-year decline in net Profit, alongside a marginal increase in the gross NPA ratio compared to the previous quarter.