RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 11642.23 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2804.57 Crore, up 3.68 % from last quarter Total Income of Rs 2704.90 Crore and up 5.64 % from last year same quarter Total Income of Rs 2654.88 Crore. The bank reported net profit after tax of Rs -462.25 Crore in latest quarter.
Investment Rationale
RBL Bank reported a weak quarter on higher slippage and accelerated provisions towards the unsecured portfolio. Business growth remained muted even as margins witnessed sequential improvement. RBL guided for a change in business strategy, with an increasing focus on Home Loans, Credit Cards, and other secured assets. On the contrary, it would de-risk the loan book by pruning the unsecured portfolio mix (other than Cards/MFI business). While collection efficiency is improving, the high mix of unsecured loans, coupled with a high BB and below book, keeps the brokerage watchful of asset quality trends over the near term. It cuts earnings estimates sharply by 72% for FY22, factoring in higher credit costs (5.3%) and subdued loan growth. It expects the bank to deliver FY23E RoA/RoE of 1.3%/11.6%.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 32.2 per cent, DIIs 23.5 per cent and public and others 44.3 per cent.
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