Reduce RBL Bank, target price Rs 150: HDFC Securities

HDFC Securities has reduce call on RBL Bank with a target price of Rs 150. The current market price of RBL Bank is Rs 166.3.

RBL Bank, incorporated in the year 1943, is a banking company (having a market cap of Rs 10000.14 Crore).

RBL Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3091.68 Crore, up 8.54 % from last quarter Total Income of Rs 2848.31 Crore and up 13.36 % from last year same quarter Total Income of Rs 2727.28 Crore. The bank has reported net profit after tax of Rs 224.80 Crore in latest quarter.

Investment Rationale
Despite lower credit costs driving a 4%upward revision to the brokerage's FY23E/FY24E earnings estimates, HDFC Securities expects return ratios to stay sub-par and, hence, maintain a REDUCE rating.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Dec-2022, while FIIs owned 28.92 per cent, DIIs 18.98 per cent.