RBL Bank Q4 Review - Earnings To Normalise By FY23E; Valuations Undemanding: Dolat Capital
Exterior of RBL Bank Nerul branch. (Photo: BloombergQuint) 

RBL Bank Q4 Review - Earnings To Normalise By FY23E; Valuations Undemanding: Dolat Capital

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.

Dolat Capital Report

RBL Bank Ltd.’s Q3 earnings were impacted by high provisions led by elevated write-offs.

Other income benefitted from healthy recoveries from written-off accounts, aiding core pre-provision operating profit metrics which stood at 3.3%.

Net interest margin were stable QoQ at 4.2% after the impact of high interest reversal and compound interest waiver.

Pro-forma slippages at ~10.2% for Q4 FY21 and 5.4% for FY21 were on expected lines, with bulk of these (80%) coming from retail segment.

The credit card book contributed ~40% of slippages during the year, with cash credit/micro finance institution slippages for the fiscal at 12%/6% respectively.

Click on the attachment to read the full report:

Dolat Capital RBL Bank Q4FY21 Result Update.pdf

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