RBL Bank down on profit-taking after solid Q1 performance

RBL Bank stock was down almost 3 percent on profit-taking in the morning trade on July 24, after the private lender reported a strong set of numbers for the June quarter over the weekend.

The bank reported a 43 percent year-on-year rise in profit at Rs 288 crore in the first quarter of the current financial year despite an increase in provisions and contingencies.

Net interest income was up 21 percent on-year to Rs 1,246 crore, with net interest margin expansion of 48 basis points 9bps) at 4.84 percent, the bank said on July 22. One basis point is one-hundredth of a percentage point.

Loan growth was up 21 percent at Rs 73,087 crore and deposits rose by 8 percent YoY to Rs 85,636 crore in the quarter.

Asset quality improved with gross non-performing assets (NPA) falling 15 bps sequentially to 3.22 percent and net NPA declining 10 bps QoQ to 1 percent for the quarter.

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Talking to Moneycontrol recently, Milan Vaishnav of Gemstone Equity Research said, “Although RBL Bank has been on the buyer’s radar since April, the first entry point came on June 30 when the stock staged a breakout when it crossed Rs 180-182 levels.”

The stock remains in a strong uptrend and it has the potential to test Rs 265-270 levels over the coming months, he said. “Some consolidation cannot be ruled out; one can accumulate the stock between Rs 198 and 210 levels if it sees some consolidation,” Vaishnav said

Also Read: Brokerages cheer Kotak Mahindra Bank for 67% profit surge, stable asset quality

Stock Performance

RBL Bank stock has given a return of 34.65 percent over the last six months, outperforming the Nifty Bank index, which has risen 7.64 percent during the period.

At 10.43 am, RBL Bank stock was trading at Rs 217.45 on the National Stock Exchange, down 1.87 percent from the previous close.

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