RBL Bank Ltd. share price target

Driven by 27% YoY growth in revenue, RBL Bank (RBL) has reported in line Q4FY24 PAT of INR 3.5bn (up 30% YoY) while asset quality improved. Overall, Q4 saw strong deposits growth (up 12% QoQ), steady advances growth (up 5%
QoQ), rise in spreads, contained opex and sharp improvement in headline GNPA. Improvement in LDR (to 81%), LCR (to 140%) and steady asset quality also bode well for strong loan growth in current environment.

RBL Bank (RBK) reported a 4QFY24 PAT of INR3.53b (5% beat, 30% YoY
growth) due to healthy other income (7% beat) and controlled opex, aided
by the reversal of employee provisions.

Healthy business growth led to 35% YoY (+5% QoQ) rise in Q3 PPOP; PAT grew 11% YoY but fell 21% sequentially on higher provisions

RBL Bank (RBL) has reported healthy Q2FY24 earnings with PAT at INR 2.94bn (1.0% RoA), driven by strong growth and operating leverage, while net NPAs reduced sharply to 78bps. The bank has utilised the one-off tax provisions reversals (INR 2.98bn) towards contingent buffer and improving PCR. Better-than-expected ramp-up in newer business and improved execution drive our more constructive stance on its vision FY26.

Expect pickup in retail loans and newer products to aid a 19% credit CAGR over FY23-FY25, with deposit CAGR of 15%

RBL Bank (RBL) reported a mixed Q1FY24 with strong loan growth, contained opex and steady 1% RoA though deposit growth was flattish and NIM declined QoQ. Asset quality was broadly stable with overall reduction in gross slippages though credit card slippages inched up.

We met RBL Bank’s (RBL) MD&CEO Subramania Kumar, and ED Rajeev Ahuja, for light on the bank’s newly unveiled FY23-FY26 strategy. Under the new MD&CEO, RBL has filled almost every senior management role (hired 6 talents laterally and elevated 21 internally) in the past ~12 months.