RBL Bank shares dip despite strong Q4 results—check share price target

RBL Bank share price NSE, RBL Bank Q4 results: Private sector lender RBL Bank shares on Monday, April 29 dipped in morning trade on D-Street despite reporting strong Q4 results. RBL Bank on Saturday posted a 30 per cent rise in the post-tax net profit for the March quarter at Rs 353 crore, driven by non-interest income.

The RBL Bank stock slipped as much as 3.16 per cent to the day's low of Rs 257. The counter closed at Rs 262.3, down 1.17 per cent on NSE.

The Maharahstra-based lender had reported a net profit of Rs 271 crore in the year-ago period. Its core net interest income grew 18 per cent to Rs 1,600 crore on a 20 per cent loan growth. However, it was limited by a compression in the net interest margin to 5.45 per cent against 5.62 per cent a year ago. The other income grew 30 per cent to Rs 875 crore during the reporting quarter.

Its managing director and chief executive R Subramaniakumar told reporters that he sees advances continuing to grow in the 20 per cent range going forward as well.

The deposit growth came at 22 per cent even in the challenging market. On the asset quality front, overall slippages increased to 0.56 per cent of the assets from the year-ago period's 0.44 per cent and were driven by microlending and also unsecured loans.

The gross non-performing assets ratio improved to 2.65 per cent from 3.37 per cent in the year-ago period. The overall provisions came at Rs 414 crore against Rs 235 crore in the year-ago period. The overall capital adequacy ratio was 16.18 per cent as of March 31, which included the core tier-I ratio at 14.38 per cent.

RBL Bank Q4 results review: Here's what Anil Singhvi suggests

Zee Business Managing Editor Anil Singhvi suggested buying RBL Bank futures for targets of Rs 271, Rs 273 and Rs 278 with a stop loss at Rs 262, with some profit booking expected at higher levels. "Performance strong on all parameters. Don't buy if the stock makes a big gap-up start," he added. 

"The company has been performing decently in the past couple of years. One should remain invested with Rs 230 as a stop loss and with a potential upside of Rs 280," said Ravi Singh, SVP - Retail Research, Religare Broking.

RBL Bank share price target

Morgan Stanley has maintained an underweight rating on RBL Bank with a target price of Rs 250. In addition, JPMorgan has maintained a neutral call with a target of Rs 270. 

(with PTI inputs)

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