Citi said RBL Bank has leveraged its promoter’s relationship with Emirates NBD to tap a disproportionately large pool of FCNR(B) deposits from the UAE corridor.
The bank has mobilised gross FCNR(B) deposits of $3.4 billion, or around ₹32,472 crore, through the Reserve Bank of India’s swap facility, according to the brokerage.
Citi described the mobilisation as an outsized haul for a mid-sized bank. The deposits account for around 26% of RBL Bank’s total deposits and 37% of its term deposits, while giving the bank a 2.7% share of FCNR(B) mobilisation.
The brokerage said the deposit accretion could have a meaningful impact on earnings. The incremental deposits could translate into a 7% increase in absolute net interest income (NII) and a 10% increase in pre-provision operating profit (PPOP) in FY27.
However, the larger balance-sheet denominator and structurally lower net interest margins (NIMs) on FCNR(B) deposits are likely to put pressure on reported NIMs in the near term, Citi said.
The brokerage expects NIM pressure of around 40-45 basis points over the next two quarters, with a partial impact likely in the second quarter and the full effect visible in the third quarter.
This pressure could be partly offset by NIM accretion from the ₹26,000 crore equity infusion, Citi said.Ultimately, the trajectory of RBL Bank’s NIMs will depend on how quickly the bank deploys and utilises the additional deposits, according to the brokerage.
The RBI’s FCNR(B) swap facility has seen strong participation, with mobilisation reaching $127.2 billion, while nearly $62 billion was added in the last 10 days, marking the strongest phase of inflows. Including external commercial borrowings and overseas borrowings, total mobilisation has crossed $136 billion.
Bank-wise data is yet to be fully disclosed. ICICI Bank has reported $17.9 billion of FCNR(B) mobilisation, while RBL Bank’s $3.4 billion inflow through Emirates NBD is equivalent to around 26% of its deposits and 37% of its term deposits.
RBL Bank shares ended 2.18% higher at ₹388.80 on Wednesday. The stock has gained more than 23% so far in 2026.
