RBL Bank Ltd.

NSE: RBLBANK | BSE: 540065 | ISIN: INE976G01028 | Industry: Banks
| Turnaround Potential
275.9000 0.70 (0.25%)
NSE Oct 03, 2025 15:31 PM
Volume: 10.1M
 

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RBL Bank Ltd.
23 Oct 2019
275.90
0.25%
HDFC Securities
With the sharp rise in anticipated' stress (up ~80% in a quarter), we expect significantly higher credit costs ahead, denting RoAAs till FY21E. We find this trend rather alarming and asset quality seems perched on a slippery slope. Reflexivity will increasingly play out here, with the bank's future prospects being dependent on fund raise (not factored in our estimates). While a full blown implosion is not yet apparent to us, we are compelled to cut valuation multiple to 1.50x vs. 2.0 earlier. Maintain NEUTRAL with a TP of Rs 294 (1.50x Sep-21E ABV of Rs 196). Even as RBKs operating performance was better than expected, the near doubling of anticipated stress since 1QFY20 dampens near term recovery. With asset quality on a slippery slope, we reduce our target multiple to 1.50x from 2.0x. Maintain NEUTRAL with a TP of Rs 294 (1.50x Sept-21E ABV of Rs 196).
RBL Bank Ltd. is trading above all available SMAs
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