Investec has maintained a Hold rating on RBL Bank, cutting the target price to ₹170. The termination of RBL’s co-branded credit card partnership with Bajaj Finance (BAF), which was its largest sourcing partner, has raised concerns over growth moderation in the near term.
Investec notes that Bajaj Finance accounted for 40% of RBL’s credit card sourcing. Consequently, the bank’s headline credit growth is expected to moderate by 200 basis points to 13-14% year-on-year in FY25, with a corresponding decline in net interest income (NII).
While RBL has been diversifying its credit card portfolio and scaling new partnerships, Investec expects growth to revive only in H2FY26. The credit card segment has been a critical growth driver for RBL, and its ability to regain momentum through new partnerships and direct sourcing will be closely watched.
