RBL Bank in Spotlight with Momentum amid Volume Surge

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A technical breakout with RSI above 70 and delivery strength near 50% underscores robust investor interest, even as Q4 FY25 profits dip sharply.

By S JHA

MUMBAI, September 8, 2025 — Shares of RBL Bank surged by 4.21% on Friday, closing at ₹277 after a clean breakout triggered by unusually strong trading volume. The RSI climbed above 70, signaling powerful upward momentum.

Investors showed commitment: delivery percentages for the past two weeks stood at 50.8% and 48.4%, reflecting sustained buyer interest rather than speculative trades.

Momentum metrics from StockEdge, shared in a thread on X, underscore the rally’s strength:

1-month score: 78/100
3- and 6-month scores: 90/100

Technicals Point to Strong Buy Signal

Broader technical indicators reinforce enthusiasm:

Investing.com labels the stock a Strong Buy, with 9 buy signals and zero sell signals across indicators like MACD, RSI, and moving averages.
Trendlyne places the stock well above its 100- and 200-day SMAs, a classic sign of an uptrend.
TrendBuy on TradingView shows a bullish flag-and-pole breakout, suggesting potential targets ranging from ₹275 to ₹361, with clear entry and stop-loss setups.

Fundamentals: Mixed but Improving

RBL’s quarterly results paint a mixed picture:

Q4 FY25 Net Profit: ₹87 crore, down 76% YoY
FY25 Net Profit: ₹717 crore, down 43% YoY

Significant pressure on earnings, but key segments—retail and housing loans—are showing strength. Asset quality is stabilising, with a GNPA of 2.60%, NNPA of 0.29%, and a higher PCR of 89%.

Outlook remains cautiously optimistic:

Loan book expected to grow 16–17% in FY26
Retail secured loans projected to expand 25–30%
Return on Assets (ROA) expected to improve as cleanup efforts continue.

Bottom Line: Breakout Backs Cautious Confidence

RBL Bank’s stock is exhibiting a textbook technical breakout—stoked by volume and momentum—transforming investor confidence into capital gains per StockEdge analysis. While its financial results still reflect pressure, structural improvements in asset quality and loan growth drivers suggest stability.

If the technical trajectory sustains, investors may look at the ₹275–₹300 range as the next resistance, said analysts. Conversely, any dip into ₹210–₹220 should be watched for safety zones.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)