RBL Bank - Normalisation Some Time Away; Modest Return Profile For Now: ICICI Securities
Exterior of RBL Bank Nerul branch. (Photo: BloombergQuint) 

RBL Bank - Normalisation Some Time Away; Modest Return Profile For Now: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

RBL Bank Ltd.’s management continues with its stance of reducing inherent business risk and lowering earnings volatility through -

  1. consolidation of the wholesale banking portfolio,
  2. cautious/selective approach in micro small and medium enterprise/loan against property, and
  3. ramp-up of secured retail products (home loans).

On a positive note, credit card sourcing and spends are showing signs of resurgence (key growth driver in the near term).

On asset quality, credit cost stabilisation still seems some time away given -

  1. stress in MSMEs and a few pockets of micro finance institutions;
  2. incremental stress recognition on credit card portfolio and known corporate accounts; and
  3. inadequate contingency buffer.

Click on the attachment to read the full report:

ICICI Securities RBL Bank Company Update.pdf

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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 author entity and do not represent the views of BloombergQuint.

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