Motilal Oswal: RBL Bank’s Deposit Franchise Stabilising; Moratorium Book Declines In Q1
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
RBL Bank Ltd. reported a modest Q1 FY21, led by strong net interest income growth. However, elevated provisions and lower fee income impacted earnings.
On the business front, deposit growth picked up sharply, led by current account and savings account while loan growth declined sequentially.
Asset quality improved, led by negligible slippages during the quarter due to standstill benefits, which enabled improvement in the coverage ratio.
Further, moratorium book declined to 13.7% of loans (v/s 33% earlier), however, moratorium remained high in credit cards (21%-22% in value terms).
The bank holds Covid-19 related provisions of Rs 3.5 billion (0.6% of loans) with higher allocation for credit cards.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.