RBL Bank Ltd.

NSE: RBLBANK | BSE: 540065 | ISIN: INE976G01028 |Industry: Banks
|Expensive Performer
166.90 2.25 (1.37%)
NSE Jul 16, 2020 15:31
Volume: 28.1M

RBL Bank Ltd.    
30 Jun 2020
HDFC Securities
We maintain our REDUCE rating with a TP of Rs 136, as we believe that RBK faces challenges on both sides of the b/s- potential stress from high unsecured loan exposure and a weak deposit franchise. Key takes from RBKs FY20 AR are as follows: (1) The share of top 20 depositors increased 40bps to 18.8% despite the ~1% (and ~8.1% QoQ in 4QFY20) fall in overall deposits. AR commentary indicates that the bank continues to focus on bulk deposits. (2) The bank appeared to have made some progress on asset-side granularity and this appears to be the focus, which is desirable in context of FY20 asset quality trends. (3) Borrowings from institutions and agencies and the RBI contributed to a majority of incremental borrowings, and overall borrowings grew at ~4x total assets. (4) Segment-wise asset quality data was in line with expectations. These disclosures concur with our stance on the bank.
RBL Bank Ltd. has an average target of 219.14 from 9 brokers.
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