RBL Bank gains 2% as gross advances grow 20%, deposits 13% in Q3

RBL Bank Q3 gross advances grow 20% YoY to Rs 81,870 crore, deposits growth at 13%.

Shares of RBL Bank gained nearly 2 percent in early trade on January 5 after a 13 percent on-year growth in total deposits to Rs 92,743 crore. At 9:15am, the stock was trading at Rs 289.24 on the NSE.

RBL Bank, a private sector lender, has reported a 13 percent year-on-year growth in total deposits, reaching Rs 92,743 crore for the quarter ended December FY24. Notably, retail Liquidity Coverage Ratio (LCR) deposits showed a robust 16 percent on-year increase, totaling Rs 41,209 crore.

However, the Current Account Savings Account (CASA) ratio declined to 33.8 percent in Q3FY24, down from 36.6 percent in the same period last year as disclosed in a business update filing by the bank with BSE on January 4.

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Gross advances for the bank experienced a significant 20 percent year-on-year growth, reaching Rs 81,870 crore. Within this, retail advances surged by 32 percent year-on-year, while wholesale advances saw a more modest 6 percent year-on-year increase during the quarter.

In summary, RBL Bank's latest financial results highlight positive growth in total deposits, with a notable uptick in retail LCR deposits. However, there was a decrease in the CASA ratio, and the bank saw substantial growth in both retail and wholesale advances, showcasing a balanced expansion in its lending portfolio.

RBL Bank stock call: Check brokerage views, target prices

Morgan Stanley has given RBL Bank an "underweight" rating with a target of Rs 250 per share. According to their initial report, the bank's loan growth was 5 percent quarter-on-quarter (QoQ) and 20 percent year-on-year (YoY), remaining relatively stable.

Further, retail loan growth slowed down, but non-retail loan growth improved. Retail deposits increased by 4 percent QoQ, remaining steady compared to the previous quarter, while liquidity decreased.

RBL Bank stock performance

The RBL Bank stock has given a return of 50.28 percent over the last six months. The benchmark Nifty Bank index has given a return of 6.74 percent over the same duration.

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