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RBL Bank Q1 Review - Elevated Provisioning Drives Loss; Watchful Of Near-Term Asset Quality: Motilal Oswal

RBL Bank Q1 Review - Elevated Provisioning Drives Loss; Watchful Of Near-Term Asset Quality: Motilal Oswal

<div class="paragraphs"><p>Exterior of RBL Bank Nerul branch (Source: BloombergQuint)</p></div>
Exterior of RBL Bank Nerul branch (Source: BloombergQuint)

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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:

Motilal Oswal RBL Bank Q1FY22 Result Update.pdf

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