RBL Bank shares jump 5% on report Mahindra group acquires 4% stake
RBL Bank recently posted a 43.2 per cent jump in net profit to Rs 288 crore for the June quarter, helped by lower provisions and higher interest income. Profit was up 30 per cent on a quarter-on-quarter basis.
- Jul 26, 2023,
- Updated Jul 26, 2023 1:07 PM IST
Shares of RBL Bank climbed 5 per cent in Wednesday's trade amid a media report that suggested Mahindra group likely bought a 4 per cent stake in the private bank via one of its entities through open market operations today. The report by CNBC TV18 suggested that the Mahindra group is keen on raising this strategic stake to 15-25 per cent.
As per the report, the Mahindra group's plan will require the RBI's approval. Mahindra group, as per the report, sees synergies in acquiring the strategic sales in the RBL Bank. That said, there was no filing on stock exchanges regarding any such share purchase. CNBC TV 18 said RBL Bank and Mahindra group did not comment on the report.
Following the development, the stock rose 4.8 per cent to hit a high of Rs 233.60 on BSE. With this, the stock is up 152 per cent in the last one year.
The private lender posted a 43.2 per cent jump in net profit to Rs 288 crore for the June quarter, helped by lower provisions and higher interest income. Profit was up 30 per cent on a quarter-on-quarter basis.
Analysts are largely positive on the stock.
"Overall, we believe that the bank is on an improving earnings growth trajectory, driven by healthy growth, margin expansion and stable asset quality. We expect the bank to achieve RoA/RoE of 1.2 per cent/10.9 per cent by FY25. We maintain BUY with a target price (TP) of Rs 267 (1 time June 2025E ABV)," said Nirmal Bang Institutional Equities.
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Shares of RBL Bank climbed 5 per cent in Wednesday's trade amid a media report that suggested Mahindra group likely bought a 4 per cent stake in the private bank via one of its entities through open market operations today. The report by CNBC TV18 suggested that the Mahindra group is keen on raising this strategic stake to 15-25 per cent.
As per the report, the Mahindra group's plan will require the RBI's approval. Mahindra group, as per the report, sees synergies in acquiring the strategic sales in the RBL Bank. That said, there was no filing on stock exchanges regarding any such share purchase. CNBC TV 18 said RBL Bank and Mahindra group did not comment on the report.
Following the development, the stock rose 4.8 per cent to hit a high of Rs 233.60 on BSE. With this, the stock is up 152 per cent in the last one year.
The private lender posted a 43.2 per cent jump in net profit to Rs 288 crore for the June quarter, helped by lower provisions and higher interest income. Profit was up 30 per cent on a quarter-on-quarter basis.
Analysts are largely positive on the stock.
"Overall, we believe that the bank is on an improving earnings growth trajectory, driven by healthy growth, margin expansion and stable asset quality. We expect the bank to achieve RoA/RoE of 1.2 per cent/10.9 per cent by FY25. We maintain BUY with a target price (TP) of Rs 267 (1 time June 2025E ABV)," said Nirmal Bang Institutional Equities.
Also read: Suzlon Energy shares in focus after Q1 results, management commentary
Also read: Tata Motors DVRs may see a gap-up start, says Nuvama. Here's why