ICICI Securities has a Hold on RBL Bank, reduces target price Rs 160
hold call on RBL Bank with a target price of Rs 160. The current market price of RBL Bank is Rs 155.95. RBL Bank, incorporated in 1943, is a banking company (having a market cap of Rs 9477.41 Crore).
RBL Bank's key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2024.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 4459.05 crore, up 4.38% from last quarter Total Income of Rs 4272.06 crore and up 19.85% from last year same quarter 's Total Income of Rs 3720.57 crore. The bank has reported net profit after tax of Rs 231.70 crore in latest quarter.
Investment Rationale
ICICI Securities estimates likely moderation in overall growth and RoA. RBL Bank (RBL) has snapped its long-standing co-branded credit card ties with Bajaj Finance (BFL). The parting of ways is due to significant change in product synergies over time. As of Q2FY25, BFL formed ~65% of the o/s cards and 50-55% of receivables. However, contribution to incremental sourcing has diminished significantly to 41% (vs. 65% YoY), as RBL has been diversifying to other partners and ramping-up its own direct sourcing. As per the bank, BFL may exit from the co-branded product altogether.
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