RBL Bank Ltd. share price target

RBL Bank (RBL) reported a healthy Q4FY23 with PAT at Rs2.7bn (RoA: 1%, as guided) driven by NIM uptick, healthy growth in deposits / loans (4-5% QoQ) and stable headline asset quality, though marginal QoQ rise in cost-income / slippages and drop in LCR were a tad disappointing.

Sequential advance growth momentum of 6% outpacing peers after a long hiatus. Moreso, it was broad-based across the retail product segment and wholesale advances too witnessed similar traction; ii) NIMs expanded 19bps QoQ to 4.74% primarily due to repricing benefit in the wholesale book and deployment of excess liquidity.

Turnaround on the anvil

The earnings performance of RBL Bank (RBL) in Q2FY23, the second quarter post management change in Jun’22, was broadly stable.

Leaving the worst behind

RBL Bank Ltd. is a fast-growing private sector bank with a network of 435 branches and over 9.8 million customers. It offers various services, including corporate and institutional banking, commercial banking, retail banking,...

On the recovery path; Retain BUY'

RBK reported a decent 3QFY22, amid heightened concerns after the management change last month, with net earnings of INR1.56b (a 10 quarter high) and supported by a 35% QoQ decline in provisions. Business trends were mixed, with the loan book growing by 4% QoQ, while the deposit portfolio declined sequentially. Margin improved by 28bp QoQ to 4.34%, led by a decline in funding cost, while the C/I ratio rose sharply to 61.3% on higher business expenses. Fresh slippages fell 37% QoQ to INR7.66b largely from the Retail portfolio...