RBL Bank shares fall for 5th day, hit 52-week low: Price targets, technicals & more 

Shares of RBL Bank slipped to their 52-week low after the private sector lender stopped issuance of new co-branded credit cards under the partnership with Bajaj Finance Ltd. Bajaj Finance was looking forward to exiting the co-branded credit card business line segment in totality, said the bank. The banking stock fell 5% to a low of Rs 147.55 against the previous close of Rs 155 on BSE. Market cap of the bank stood at Rs 9,319.57 crore. 

The stock is trading lower for the fifth straight day. In terms of technicals, the relative strength index (RSI) of RBL Bank stands at 33.4, signaling it's neither trading in the overbought nor in the oversold territory. RBL Bank shares are trading lower than the 5 day, 10 day, 50 day, 100 day, 150 day and 200 day moving averages.  

Motilal Oswal has a Neutral stance with a price target of Rs 170. 

"We moderate growth and margin estimates and cut FY25/26E PAT estimates by 5%/15%. We, thus, estimate to deliver FY26 RoA/RoE at 0.9%/9.1%. We reiterate Neutral with a revised target price of Rs 170 (premised on 0.7x FY26E ABV)," said Motilal Oswal. 

"RBL Bank aims to diversify the sourcing partnerships with other NBFCs (Mahindra Finance, TVS Finance) and consumer brands (e.g., IOC, IRCTC) to reduce its reliance on any single partner," added Motilal Oswal. 

Jigar S Patel, manager at Anand Rathi said, "Support will be Rs 147.5  and resistance at Rs 162. A decisive move above the Rs 162 level may trigger a further upside of Rs 170. The expected trading range will be between Rs 147.5 to Rs 170 for the short-term." 

ICICI Securities has downgraded the stock to hold from 'add'. It has lowered its price target to Rs 160 instead of the earlier Rs 220. 

"We cut our growth and EPS estimates accordingly and envisage the bank to deliver muted RoA of ~0.6%/0.9% for FY25/FY26. We downgrade the stock to HOLD (from Add) with a revised target price of INR 160 (earlier INR 220), valuing the stock at 0.6x FY26E ABV (0.8x earlier)," said ICICI Securities.  

"Albeit a tad unexpected, we see this move as appropriate from a risk management perspective. Even so, this comes at a time when RBL’s other unsecured segment (MFI) is undergoing challenging times (sharp rise in stress). In our view, a slowing in high-yielding unsecured retail may impact overall growth (as unsecured retail has been cross-subsidising sub-scale secured retail) and RoA. Despite inexpensive valuations, we downgrade the stock to HOLD," added ICICI Securities. 

AR Ramachandran, an independent Sebi registered research analyst said, "RBL Bank is bullish but also oversold on the Daily charts with strong support at 147.5. Investors should buy only if Daily close is above resistance of Rs 159 for target of Rs 178 in the near term."

Brokerage Nirmal Bang has lowered its price target to Rs 174 from Rs 219 earlier. 

It valued RBL Bank at 0.6 times September 2026E adjusted book value (ABV) against 0.75 times September 2026E ABV earlier. 

Kushal Gandhi, Technical Analyst, StoxBox said, "The share price of RBL Bank is currently exhibiting a bearish trend, with weekly shorter-term moving averages acting as immediate overhead resistance. Over the past 47 trading weeks, the stock has declined nearly 49% after failing to maintain support above the critical level of 274 in early January 2024, showing no signs of recovery. On both daily and higher timeframes, the MACD indicators indicate a bearish trend, while the relative strength index (RSI) is trending downward without any divergence from the price, suggesting a continued erosion of momentum. Furthermore, both earnings per share (EPS) and price strength are significantly low, coupled with weak buyer demand, which raises serious concerns. Based on these factors, we advise against attempting to 'catch the falling knife' at the current market price."