RBL Bank - Q2FY21 Result - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

RBL Bank reported a moderate set of numbers. Positive is CASA improved, BBB & Below book declined, and NII and Advance growth weak. Advance declined 4% YoY, The corporate loans declined by 26% YoY ( 43% of overall loans) but retail loans improved by 23% YoY. NII grew at 7%, which is a very weak growth considering the history of NII growth. NIMs declined ~50bps to 4.34% due to accelerated de-recognition of interest on expected slippages in 3QFY21. Pre provision increased 13% led by controlled opex (declined 1% YoY). Deposits momentum carried over from 1QFY21 and grew 5% QoQ and CASA ratio improved to 31%. Bank expects credit cost similar to FY20 and it has a contingent provision of 1.2% of the loan book. We have a positive view on RBL bank considering inexpensive valuation.

Shares of RBL Bank Ltd was last trading in BSE at Rs.174.7 as compared to the previous close of Rs. 175.65. The total number of shares traded during the day was 1556967 in over 15926 trades.

The stock hit an intraday high of Rs. 181.9 and intraday low of 171.2. The net turnover during the day was Rs. 274220141.

Source : Equity Bulls

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