13-Oct-2026 07:51:14
CLSA on RBL BK ; U-P TP Rs 310
Largely in-line NII & PPOP vs estimate, whereas its PAT missed by 15% due to higher-than-expected credit costs Latter was driven by higher-than-expected slippages & write-offs, and a one-off standard asset provision. FCNR deposit accretion of US$3.4bn was strong, but average CASA growth of 5% YoY was muted Cost of deposits declined 15bp, which is good but still remains higher than that of other banks On lending side, growth remains driven by lower-yielding wholesale and secured retail loans. Correspondingly, RBL’s loan yields are down 40bp QoQ and c.150bp YoY to 10.8% While acknowledge that ‘worst’ on NIM and asset quality may be behind, highlight that medium-term ROE of bank (8-9%) & its inherent cyclicality do not justify the 1.4x PB multiple that it gets.