BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
RBL Bank Ltd. has reported a healthy recovery in loan growth and the management expects to sustain this momentum, led by steady growth in retail segments.
The continued business investments and healthy cross-selling will further help to diversify the loan book and enable faster growth in retail liabilities. While the bank's return on equity remains low, it is well capitalised to support growth momentum (current tier-I at more than 15%) and the management expects to raise capital only toward FY25 end.
The management has guided for improved profitability ratios as new businesses achieve breakeven and an improving asset mix drives steady net interest margin improvement. As a result, return on asset is expected to improve to 1.4-1.5% by FY26E.
We raise our FY25E earnings by 8% and estimate RBL Bank to deliver a 38% earnings compound annual growth rate over FY23- 25 with RoA/RoE improving to 1.2%/11%.
Maintain 'Neutral' with a target price of Rs 240 based on 0.9 times FY25E adjusted book value.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
