Shares of RBL Bank fell over 5 per cent today despite the lender posting Rs 201 crore profit for the quarter ended June 30, 2022. The lender had posted a net loss of Rs 459 crore in the year-ago period. The stock fell 5.69 per cent at Rs 89.55 against the previous close of Rs 94.55 on BSE.
RBL Bank stock is trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
The stock has fallen 56 per cent in a year and lost 28.61 per cent since the beginning of this year.
Total 5.26 lakh shares of the firm changed hands amounting to a turnover of Rs 4.28 crore on BSE. The market cap of the lender stood at Rs 4,877 crore on BSE.
The stock hit a 52-week low of Rs 74.15 on June 20, 2022 and a 52-week high of Rs 221.20 on November 10, 2021.
Net interest income (NII) climbed 6 per cent to Rs 1027.1 crore in Q1 against Rs 969.5 crore in the corresponding period last fiscal. Net interest margin (NIM) stood at 4.36 per cent.
Interest earned rose over 3 per cent to Rs 2,089 crore in Q1FY23 against Rs 2,026 crore in Q1FY22.
June quarter provisions and contingencies fell to Rs 253 crore against Rs 1,384 crore in the same quarter last fiscal.
Assets quality performance
On the asset quality front, RBL Bank's gross NPAs stood at 4.08 per cent in this quarter as against 4.4 per cent in the previous quarter, while net NPAs stood at 1.16 per cent against 1.34 per cent in the previous quarter.
As of June 30, 2022, the bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited, a wholly owned subsidiary of the bank, accounts for 789 business correspondent branches, the lender stated.
How brokerages explain the fall in stock price
YES Securities has maintained a buy call on the bank post Q1 earnings.
"Credit cards and microfinance continued to throw up slippages but management guides to more than a halving of credit cost in FY23. Management re-iterated that loan growth could be in the 15-18 per cent range driven by retail loan growth of 20-25 per cent. While management stopped short of providing numerical guidance on NIM, they stated it would be on sequentially improving trend. We maintain ‘Buy’ rating on RBL Bank with a revised price target of Rs 114."
JPMorgan is neutral on the stock with a target of Rs 105. The bank has highlighted no strain on asset quality post CEO change. Return on equity will take time to reflate on operational expenditure strain. Loan book was flat on a quarter to quarter basis with fall in retail book offset by wholesale growth, said JPMorgan.
Credit Suisse has cut target price for RBL Bank to Rs 105. The lender's Q1 show beat estimates on the back of treasury gains and contained expected credit costs. Operating performance is muted, with loans flat on a QoQ basis, and net interest margins down 15 bps QoQ.
Tirthankar Das, Head of Technical Research, Ashika Group
Price remains in downtrend forming consecutive lower low formation indicating trend remain in favour of the bears. On the oscillator front, RSI is in a strong bearish zone in daily and weekly timeframes. The MACD is way below the zero line, the daily ADX (35) is on a rising trend with minus DMI well above the +DMI though converging indicating negative bias. The KST and TSI indicators shows a bearish setup. Amidst such negative setup, oscillators are in extreme oversold reading and recent low of Rs 74 if sustains then might promote a pullback. However, no signs of price exhaustion can be seen yet and it would be wiser to follow the trend rather than hunting bottom. Meanwhile buying on strength seems more natural only above Rs 96- Rs 98.
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