RBL Bank Q2 Results Review - Changing Advances Mix To Improve Margin: Nirmal Bang

"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..Nirmal Bang Report.RBL Bank Ltd. reported net interest income/pre-provision operating profit/profit after tax came in at a deviation of - 16.5%/5.9%/2.5% versus our estimates. PAT grew by 45.9% YoY (2.1% QoQ) to Rs 2,941 million, mainly due to a reversal of tax provisions relating to earlier years, of Rs 2.2 billion. RBL Bank utilised these writebacks in creating contingency / accelerated provisions for its unsecured business.The management is confident of achieving 5% net interest margin in FY24, driven by increasing share of retail advances. Advances and deposits growth is expected to be 20% plus each with a clear focus on retail advances and granular deposits. Retail advances are expected to grow by ~33-35%. Scale-up of housing loans, loan against property, gold loans and vehicle finance is expected to add to profitability. Credit cost guidance maintained at 1.5- 2% (excluding contingency/accelerated provision made in Q2 FY24).Overall, we believe that the bank is on an improving earnings growth trajectory, driven by healthy growth, margin expansion and stable asset quality. We expect the RBL abank to achieve return on assets/return on equity of 1.2%/11.2% by FY25. We maintain 'Buy' with a target price of Rs 303 (1.1 times September- 2025E adjusted book value)..Click on the attachment to read the full report:.Amber Enterprises Shares Fall Over 10% After Q2 Loss Widens .DISCLAIMERThis 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."

RBL Bank Q2 Results Review - Changing Advances Mix To Improve Margin: Nirmal Bang

Overall, we believe that the bank is on an improving earnings growth trajectory.

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RBL Bank Q2 Results Review - Changing Advances Mix To Improve Margin: Nirmal Bang

Overall, we believe that the bank is on an improving earnings growth trajectory.

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