The weakest quarterly performance by the bank since listing saw gross NPA ratio at 2.6 per cent breach the management guidance provided earlier
Stock has fallen 50% since July 12, further downside not ruled out
Since July 19, post April-June quarter results, RBL Bank has underperformed the market by falling 42 per cent as compared to 3 per cent decline in the Nifty 50 index.
With additional challenges such as fresh stress, loan growth, and escalating costs, the sector faces a tough year ahead
The funds mopped up could be utilised primarily to aid the bank's growth
RBL Bank on Friday said that it expects some challenges on some of their exposures in the near term.
In addition to asset-quality trend, Street will keep an eye on capital
The interest earned during the quarter rose to Rs 2,022.67 crore from Rs 1,364.22 crore a year earlier
For the June quarter, RBL Bank posted a 41 per cent year-on-year (YoY) rise in net profit or PAT (profit after tax) at Rs 267.1 crore. Sequentially, the numbers grew 8 per cent.
RBL's rich valuations, at 3.5 times its FY20 estimated book, is similar to HDFC Bank's, which continues to remain among the most expensive banking stock for its ability to maintain a clean loan book
The net interest margins rose to 4.23% in Q4FY19 from 3.98 per cent in Q4FY18
The expected increase in costs of deposits likely to offset margin gains from high-yield loan segments, say analysts
Net Interest Income up 40% to 655 crore; improvement in asset quality seen in better NPA ratios
With the bank growing its assets by over 30-35% quarter after quarter, it is constantly in need of capital
While the bank expects resolution on big-ticket loans by the next quarter, it remains cautious on its agricultural portfolio
Deposits for the quarter grew by 29% and advances grew by 38%
Currently, Swadhaar operates in 17 states and union territories through 242 branches
HDFC Life, ICICI Lombard, ABG Capital, CDC Group, Global IVY Ventures among key investors
Caution after 77% run-up this year
Thus far in 2017, RBL Bank and YES Bank outperformed the market by gaining more than 30%.