Reduce RBL Bank; target of Rs 148: HDFC Securities
HDFC Securities recommended reduce rating on RBL Bank with a target price of Rs 148 in its research report dated July 30, 2020.
August 03, 2020 / 04:19 PM IST
HDFC Securities' research report on RBL Bank
Significant treasury gains and strong NIMs buoyed RBK’s 1Q earnings. While QoQ deposit growth was healthy, deposit granularity remains an area of concern. Moratorium trends in the credit card and micro-credit portfolios, where LGDs are high, are concerning. These segments could contribute disproportionately to slippages and LLPs. Provisions are likely to remain elevated in the near term, denting return ratios.
This underpins our REDUCE rating. Our price target of Rs 148 remains unchanged.
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