RBL Bank Q3 Results Review - Adjusted PAT Inline; AIF-Related Provisions Dent Earnings: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.RBL Bank Ltd. reported Q3 FY24 profit after tax of Rs 2.33 billion (26% miss) as the bank made a contingent provision of Rs 1.15 billion with respect to AIF investments pursuant to the RBI circular. Adjusted for this provision, PAT stood at Rs 3.19 billion (versus our estimate of Rs 3.16 billion). Net interest income grew 21% YoY to Rs 15.4 billion (inline; up 4.8% QoQ). Net interest margins moderated by 2 bp QoQ to 5.52% in Q3 FY24.  Advances growth was healthy at 20% YoY/4.7% QoQ, led by healthy growth in the retail segment. Deposit growth stood at 13.5% YoY/3.3% QoQ. The current account and savings account ratio moderated 195 bp QoQ to 33.8%. Fresh slippages increased to Rs 6.7 billion. Gross non-perforiming asset/net non-performing asset ratios were largely flat at 3.12%/0.80%, while provision coverage ratio declined 56 bp QoQ to 75.1%. We cut our FY24/FY25 earnings estimates by 10%/9% and estimate FY25 return on asset/return on equity of 1.1%/10.3%. We reiterate our 'Neutral' stance with a revised target price of Rs 270 (1.0 times Sep-25E adjusted book value)..Click on the attachment to read the full report:.RBL Bank Q3 Profit Rises 11% To Rs 233 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RBL Bank Q3 Results Review - Adjusted PAT Inline; AIF-Related Provisions Dent Earnings: Motilal Oswal

Net interest margins to remain stable

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