Buy RBL Bank, target price Rs 250: Motilal Oswal
RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 12956.11 Crore).
By ETMarkets.com | Updated:
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Motilal Oswal has buy call on RBL Bank with a target price of Rs 250. The current market price of RBL Bank is Rs 217.7. Time period given by analyst is one year when RBL Bank price can reach defined target.
RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 12956.11 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2704.90 Crore, up 2.61 % from last quarter Total Income of Rs 2636.20 Crore and down -2.80 % from last year same quarter Total Income of Rs 2782.77 Crore. The bank reported net profit after tax of Rs 75.74 Crore in latest quarter.
Investment Rationale
RBL Bank posted moderation in loan growth, affected by the lockdowns and cautious stance in growing the unsecured portfolio amid the COVID-19 pandemic. Systemic credit growth remained weak (down 1%) in FY22YTD. Most of the banks reported sequential decline of 1–4% QoQ in loan growth. On the other hand, the deposit franchise is improving steadily, led by robust growth in retail deposits. Moreover, the second COVID wave has impacted collection efficiency, particularly in the MFI book, and would be a key monitorable in the near term. It maintains Buy, with TP of INR250 (1.1x FY23E ABV).
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.2 per cent, DIIs 24.7 per cent and public and others 40.2 per cent.
RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 12956.11 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2704.90 Crore, up 2.61 % from last quarter Total Income of Rs 2636.20 Crore and down -2.80 % from last year same quarter Total Income of Rs 2782.77 Crore. The bank reported net profit after tax of Rs 75.74 Crore in latest quarter.
Investment Rationale
RBL Bank posted moderation in loan growth, affected by the lockdowns and cautious stance in growing the unsecured portfolio amid the COVID-19 pandemic. Systemic credit growth remained weak (down 1%) in FY22YTD. Most of the banks reported sequential decline of 1–4% QoQ in loan growth. On the other hand, the deposit franchise is improving steadily, led by robust growth in retail deposits. Moreover, the second COVID wave has impacted collection efficiency, particularly in the MFI book, and would be a key monitorable in the near term. It maintains Buy, with TP of INR250 (1.1x FY23E ABV).
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.2 per cent, DIIs 24.7 per cent and public and others 40.2 per cent.
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