RBL Bank Limited has announced that ICRA Limited has reaffirmed its ratings for various instruments while maintaining the long-term rating on Watch with Positive Implications. The rating for Basel III Tier II Bonds and Fixed Deposits remains [ICRA]AA- on Watch with Positive Implications. The Short Term Fixed Deposit rating has been reaffirmed as [ICRA]A1+. The rating for Certificates of Deposit has been reaffirmed and assigned for an enhanced amount, with the total rated amount increasing from ₹6,070 crore to ₹10,070 crore. The rating action follows ICRA's previous placement of the bank's long-term rating on Watch with Positive Implications on October 18, 2025, subsequent to the announcement of a potential investment of up to approximately $3 billion (₹26,850 crore) by Emirates NBD PJSC (ENBD) for a 60% controlling stake. This transaction, which is subject to statutory and regulatory approvals, will also involve a mandatory open offer for public shareholders and the amalgamation of ENBD's Indian branches with RBL. ICRA noted RBL Bank's comfortable capital position, with CET1 and CRAR at 13.51% and 15.02% respectively as of September 30, 2025. The bank has also seen healthy growth in advances and its deposit base. However, the earnings profile is impacted by high credit provisions and operating costs, leading to suboptimal profitability, particularly due to slippages in the unsecured retail loan segment. The substantial equity infusion from the ENBD transaction is expected to support net interest margins and overall profitability. The rating rationale also highlighted the improving deposit base, though the share of granular deposits remains lower than peers. Asset quality and credit costs remain monitorable, with continued stress in unsecured retail segments. Liquidity position is described as adequate, with a daily average LCR of 127% in Q2 FY2026. ICRA will resolve the rating watch upon completion of the ENBD transaction.