RBL Bank shares fall over 9% to register worst day of 2023 after RBI increases risk weight assets for lenders

For banks, all loans except housing, educational, vehicle and jewellery loans will attract 125% risk weights.

Based on the data compiled by CNBC-TV18, 24.3% of RBL Bank's portfolio is unsecured credit.

Brokerage firm Citi expects an impact of less than 25 basis points on the CET-1 ratio of RBL Bank post this decision.

"RBL Bank is also having relatively higher exposure to some of the unsecured loan portfolio. So, it's important to watch how that portfolio performs for the bank going forward," Ashutosh Mishra of Ashika Stock Broking told CNBC-TV18 on October 21.

Of the 23 analysts that track RBL Bank, 14 have a "buy" rating, three say "hold", while six have a "sell" call.

RBL Bank has been in the news since the Mahindra Group acquired a stake in the lender in July. The vehicle manufacturer clarified later that it has no plans to increase its stake in the bank as of now to 10%.

Shares of RBL Bank are down 7% at ₹236.75. The stock has snapped a five-day gaining streak but has gained 30% so far in 2023.