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RBL Bank Shares Downgraded To 'Sell' By Dolat Capital Post Q1 Results On Expensive Valuations

Dolat Capital revises rating downward to ‘Sell’ owing to RBL Bank's stretched valuations at 0.9x FY27E.

<div class="paragraphs"><p>MFI slippages have started to moderate, and RBL Bank expects slippages from cards book to start softening from H2.</p><p>(Photo Source: Vijay Sartape/ BQ Prime)&nbsp;</p></div>
MFI slippages have started to moderate, and RBL Bank expects slippages from cards book to start softening from H2.

(Photo Source: Vijay Sartape/ BQ Prime) 

RBL Bank reported a miss on PAT led by higher opex as the bank invested towards in-house collections in cards portfolio. Slippage ratio at 4.6% was elevated, but credit costs at 190 bps were limited as the bank had provided ~75% PCR against JLG SMA book.
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