RBL BankBOM:540065 -4.01%69 ROE % is 5.85% as of Mar. 2026, which is 7% below its 10-year median of 6.30. GuruFocus rates BOM:540065 with a GF Score™ of 69/100 and a GF Value™ of ₹302.81 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,524 Banks companies, RBL Bank ranks worse than 80.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RBL Bank's annualized net income for the quarter that ended in Mar. 2026 was ₹9,777 Mil. RBL Bank's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹167,242 Mil. Therefore, RBL Bank's annualized ROE % for the quarter that ended in Mar. 2026 was 5.85%.
The historical rank and industry rank for RBL Bank's ROE % or its related term are showing as below:
BOM:540065'
s ROE % Range Over the Past 10 Years
Min: -1.32 Med: 6.3 Max: 12.2
Current: 5.44
During the past 13 years, RBL Bank's highest ROE % was 12.20%. The lowest was -1.32%. And the median was 6.30%.
BOM:540065's ROE % is ranked worse than 80.18% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs BOM:540065: 5.44
RBL Bank (BOM:540065) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
RBL Bank ROE % Related Terms
RBL Bank ROE % Historical Data
* Premium members only.
The historical data trend for RBL Bank's ROE % can be seen below:
* 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.
For the Banks - Regional subindustry, RBL Bank's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RBL Bank ROE % vs Banks Industry
For the Banks industry and Financial Services sector, RBL Bank's ROE % distribution charts can be found below:
* The bar in red indicates where RBL Bank's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
RBL Bank (BOM:540065) has a ROE % of 5.85% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on RBL Bank and its competitors. This is near median its historical median of 6.30. According to the industry distribution chart, RBL Bank ranks #1222 out of 1524 companies in the Banks industry, placing it in the top 80.2%.
Is RBL Bank's ROE % too high?
RBL Bank's current ROE % of 5.85% is near median its 10-year median of 6.30. The Banks industry median ROE % is 10.22. RBL Bank's value of 5.85% is 42.8% below this industry median. Based on the distribution chart, RBL Bank ranks #1222 out of 1524 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, RBL Bank has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RBL Bank's ROE % compare to competitors?
According to the Banks industry distribution chart, RBL Bank ranks #1222 out of 1524 companies for ROE %. This places RBL Bank in the lower half of its industry. The industry median ROE % is 10.22. RBL Bank's value of 5.85% is 42.8% below this benchmark. While the company's 10-year median is 6.30 vs. the industry median of 10.22, RBL Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RBL Bank's current ROE % of 5.85% is 42.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on RBL Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RBL Bank's current ROE % is 5.85%, which is near median its own 10-year median of 6.30. 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 ₹302.81, compared to a current price of ₹360.05 — trading 18.9% above its estimated fair value. The current ROE % is 5.85%, which is near median its 10-year median of 6.30 and 42.8% below the Banks industry median of 10.22. RBL Bank's overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For RBL Bank (BOM:540065), the current ROE % is 5.85% as of Mar. 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 ₹360.05 is trading 18.9% above its estimated GF Value™ of ₹302.81.
GuruFocus considers RBL Bank to be Modestly Overvalued.
Key valuation signals for BOM:540065:
ROE %: 5.85% (near median its 10-year median of 6.30)
GF Value™: ₹302.81 vs. price of ₹360.05 (18.9% above fair value)
Industry Position: 42.8% below the Banks median (#1222 of 1524)
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 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.
69GF Score
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