RBL Bank Q1 Review - Elevated Provisioning Drives Loss; Watchful Of Near-Term Asset Quality: Motilal Oswal
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.
Motilal Oswal Report
RBL Bank Ltd. reported a weak quarter, with net loss of Rs 4.6 billion, impacted by elevated provisions (Rs 14.3 billion) as the bank upfronted the impact of the second Covid-19 wave and shored up its provision coverage ratio to ~61%.
Business growth remains muted, impacted by a weak business environment.
On the other hand, margins are seeing a sequential uptick, aided by lower cost of funds, some excess liquidity deployment, and lower interest reversals versus Q4 FY21.
RBL Bank has suggested a change in business strategy, with an increasing focus on home loans and expansion in the credit cards business.
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 author entity 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.