RBL Bank Q3 Results Review - Inline Quarter; Slightly Higher Delinquencies: Dolat Capital

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..Dolat Capital Report.RBL Bank Ltd. reported in-line quarter with net interest income/pre provision operating profit growth of 21%/35% YoY, sequentially stable net interest margin at 5.5% (-2 basis points QoQ), and healthy traction in retail deposits (+ 4%). The bank made Rs1.15 billion of contingent provisions against alternative investment funds, limiting profit after tax growth and return on assets (0.75%) during the quarter..Slippages at 3.5% were slightly higher, though healthy recoveries (including that from written off accounts) limited credit costs to ~ 170 basis points (excluding of contingent provisions). Loan growth was led by credit cards, newer secured retail and commercial banking..We lower earnings for FY24E, factoring impact of AIF provisions. Despite strong execution on growth and healthy profit after tax compound annual growth rate of 26% over FY23-26E, we maintain accumulate as 1-1.2% RoA seems non-commensurate with the risks given the high share of unsecured portfolio (1/3rd book is MFI/credit card).Maintain 'Accumulate' with unrevised target price of Rs 275, valuing bank at one time September-25E adusted book value against RoA/RoE of 1.1%/10% for FY25E..Click on the attachment to read the full report:.360 One Wam Q3 Results Review - Profitability Inline; Yields On ARR Assets Flat Sequentially: Motilal Oswal.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 - Inline Quarter; Slightly Higher Delinquencies: Dolat Capital

Growth driven by granular books; weak mutual fund investment growth.

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