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Outlook & Valuation: RBL Bank’s fresh set of stressed pool would push back ROA
of 1.5% to Q2FY2021. However, for the next couple of quarters key monitorable
will be no further addition to stress book and BB & Below book. We expect RBL
Bank to grow its advances at CAGR of 22% over FY2019-21E. Improvement in
CASA, higher share of retail book and in-house priority sector lending will support
NIM going forward. At CMP, RBL trades at 1.4x FY21E P/ABV. We maintain our
Buy rating with Target Price of `410

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