RBL Bank shares jump 4% on $3.4 billion FCNR deposits; Citi sees earnings boost

RBL Bank shares rose over 4% on September 3 after the lender reported mobilizing $3.4 billion in FCNR-B deposits under the RBI's concessional swap facility, a move Citi says reshapes the bank's earnings narrative. Citi called the deposit haul "outsized" for a mid-sized bank, representing 26% of total deposits and a 2.7% market share in FCNR-B mobilization, supported by promoter Emirates NBD's UAE corridor relationship. The brokerage estimates a 7% uplift in net interest income and 10% in pre-provision operating profit for FY27, though it expects optical NIM pressure of 40-45 basis points over the next two quarters. The RBI's special USD-INR swap facility, launched June 8 to attract foreign capital and stem rupee depreciation, drew $127.23 billion in FCNR-B deposits nationwide by its August 31 closing date. Citi maintains a 'Buy' rating on RBL Bank with a target price of Rs 440.