RBL Bank (BOM:540065) Beneish M-Score: -2.45 (As of Jul. 04, 2026)


BOM:540065 RBL Bank Ltd BOM:540065
72 GF Score
Price ₹361.20
GF Value ₹302.23
Valuation Modestly Overvalued
! 7 Warning Signs
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What is RBL Bank Beneish M-Score?

RBL Bank BOM:540065 +1.67% 72 Beneish M-Score is -2.45 as of Jul. 04, 2026. GuruFocus rates BOM:540065 with a GF Score™ of 72/100 and a GF Value™ of ₹302.23 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,397 Banks companies, RBL Bank ranks better than 60.92% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for RBL Bank's Beneish M-Score or its related term are showing as below:

BOM:540065' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71   Med: -2.24   Max: -1.73
Current: -2.45

During the past 13 years, the highest Beneish M-Score of RBL Bank was -1.73. The lowest was -2.71. And the median was -2.24.

BOM:540065
72GF Score
RBL Bank Ltd BOM:540065
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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RBL Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of RBL Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0009+0.892 * 1.024+0.115 * 0.9424
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.037064-0.327 * 0.9397
=-2.45

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹0 Mil.
Revenue was ₹104,893 Mil.
Gross Profit was ₹104,893 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹1,807,469 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,816 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,469 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹167,964 Mil.
Net Income was ₹8,791 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹75,782 Mil.
 Total Receivables was ₹0 Mil.
Revenue was ₹102,433 Mil.
Gross Profit was ₹102,433 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹1,467,721 Mil.
Property, Plant and Equipment(Net PPE) was ₹6,038 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,358 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,176 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹145,152 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 104892.7) / (0 / 102433)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(102433 / 102433) / (104892.7 / 104892.7)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 5816) / 1807469.2) / (1 - (0 + 6038.1) / 1467721.124)
=0.996782 / 0.995886
=1.0009

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=104892.7 / 102433
=1.024

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(2358.4 / (2358.4 + 6038.1)) / (2469.4 / (2469.4 + 5816))
=0.280879 / 0.298042
=0.9424

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 104892.7) / (1176.343 / 102433)
=0 / 0.011484
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((167964.4 + 0) / 1807469.2) / ((145151.87 + 0) / 1467721.124)
=0.092928 / 0.098896
=0.9397

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(8790.5 - 0 - 75781.7) / 1807469.2
=-0.037064

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

RBL Bank has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.45 mean?
RBL Bank (BOM:540065) has a Beneish M-Score of -2.45 as of Jul. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on RBL Bank and its competitors. According to the industry distribution chart, RBL Bank ranks #546 out of 1397 companies in the Banks industry, placing it in the top 39.1%.
Is RBL Bank's Beneish M-Score too high?
RBL Bank's current Beneish M-Score is -2.45. Based on the distribution chart, RBL Bank ranks #546 out of 1397 companies in the Banks industry, which is above the industry midpoint. Overall, RBL Bank has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RBL Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, RBL Bank ranks #546 out of 1397 companies for Beneish M-Score. This puts RBL Bank in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on RBL Bank and its competitors. RBL Bank's current Beneish M-Score is -2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RBL Bank stock overvalued right now?
Based on GuruFocus' analysis, RBL Bank (BOM:540065) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹302.23, compared to a current price of ₹361.20 — trading 19.5% above its estimated fair value. The current Beneish M-Score is -2.45. RBL Bank's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For RBL Bank (BOM:540065), the current Beneish M-Score is -2.45 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is RBL Bank (BOM:540065) Overvalued in 2026?

Based on GuruFocus' analysis, RBL Bank stock appears to be overvalued. The current stock price of ₹361.20 is trading 19.5% above its estimated GF Value™ of ₹302.23. GuruFocus considers RBL Bank to be Modestly Overvalued.

Key valuation signals for BOM:540065:

  • Beneish M-Score: -2.45
  • GF Value™: ₹302.23 vs. price of ₹361.20 (19.5% above fair value)
  • GF Score™: 72/100 with 7 warning signs

No single metric tells the full story. See the BOM:540065 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

RBL Bank Business Description

Other Exchanges RBLBANK:India
Address 841, Senapati Bapat Marg, One world Centre, Tower 2B, 6th Floor, Lower Parel (West), Mumbai, MH, IND, 400013
RBL Bank Ltd is an Indian commercial bank. Its segments include Corporate/Wholesale Banking, Retail Banking, Treasury, and Other Banking Operations. The Treasury segment includes investments and all financial markets activities undertaken on behalf of the Bank's customers, proprietary trading, bullion business, maintenance of reserve requirements, and Other; Retail Banking segment includes lending, deposits, credit cards and other banking services provided to retail customers of the bank; Corporate/Wholesale Banking segment includes lending, deposits, and other banking services provided to corporate customers of the Bank and other banking operations; Other Banking Operations Includes para banking activities like Bancassurance, etc. It generates maximum revenue from the Retail Banking.
72GF Score

Get the complete analysis for BOM:540065

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹361.20
Price
₹302.23
GF Value