Motilal Oswal is bullish on RBL Bank has recommended buy rating on the stock with a target price of Rs 180 in its research report dated May 07, 2020.
While retaining reduce call with a target price of Rs 135, Yes Securities said it cut FY21/22 earnings estimates by 88/44 percent due to sharp adjustments to loan growth, fee growth and credit cost.
Provision coverage ratio at the end of March quarter improved to 64.04 percent, against 58.07 percent in Q3FY20, said the bank.
The bank is also rolling out similar mobile ATM vans across Delhi and Chennai.
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The stock has corrected more than 80 percent in last one year due to higher provisions for bad loans, withdrawal of deposits after Yes Bank crisis etc.
The city-based bank, which has seen a massive erosion in its stock price recently, however, asserted that it is doing well across all business parameters.
On the margin front, Vishwavir Ahuja said margins are looking good now or maybe better than last quarter.
According to RBL Bank, all its businesses are doing well as it continues to expand its presence across newer territories.
The bank added that all its business segments are doing well and it is expanding presence across newer geographies by adding branches and are also hiring more people as previously planned.
The statement comes in the wake of the Yes Bank crisis, following which stock prices of various banks went sharply down.
The bank maintained its guidance for FY20 and said termed reports of any material adverse change in its asset quality after it announced its Q3 results on January 22 as untrue
Nifty Bank Index shed nearly 4 percent at 27717.50, while Nifty PSU Bank Index down 4.2 percent at 1811.25
With interest rates on the downtrend, thanks to five consecutive rate cuts by the Reserve Bank of India (RBI) in 2019, and surplus liquidity conditions since past few months, banks were able to reset their deposit rates leading to lower cost of funds in the third quarter.
The collection efficiency was down to 85% but is expected to improve.
Provisions of the company were up at Rs 638.3 crore versus Rs 533.3 crore, QoQ and versus Rs 160.7 crore, YoY.
The bank’s provisions were up at Rs 638.3 crore in the third quarter, from Rs 533.3 crore in the previous quarter and Rs 160.7 crore in the same period last year.
The preferential allotment increases the bank's total capital adequacy ratio to 16.31 percent, core equity tier I ratio to 15.29 percent, enhancing the bank's capital adequacy.
The preferential allotment increases the bank's total capital adequacy ratio to 16.31 per cent, core equity tier I ratio to 15.29 per cent, enhancing the bank's capital adequacy.
The brokerage has an underweight rating on the stock with a target price of Rs 240 per share, implying 28.4% potential downside from current levels.
Moneycontrol's Shraddha Sharma does a 3-Point Analysis to find out whether RBL Bank stocks can be a rewarding investment.
In a statement RBL Bank said "it has successfully concluded the QIP of Rs 2,025 crore at an issue price of Rs 351 per share (including premium of Rs 341) pursuant to the allotment of 5.77 crore equity shares."
RBL Bank said a meeting of the committee is scheduled to be held on or after December 5, to consider the issue price including a discount, if any thereto, for the equity shares to be allotted to qualified institutional buyers pursuant to the QIP.