RBL Bank is in focus after its decision to end the co-branded credit card partnership with Bajaj Finance (BAF), a key channel for its credit card business. Brokerages have mixed opinions on how this move will impact the bank’s future growth.
Below is a summary of brokerage ratings, target prices, and potential upside/downside based on the current market price (CMP) of ₹154.95:
| Brokerage | Rating | Target Price | Upside/Downside (%) |
|---|---|---|---|
| Morgan Stanley | Underweight | ₹180 | +16.2% |
| Citi | Buy | ₹255 | +64.5% |
| Investec | Hold | ₹170 | +9.7% |
Morgan Stanley has expressed concerns about the loss of a significant sourcing partner, which could constrain RBL’s market share growth in credit cards. It expects subdued valuations, with RoE likely to stay below CoE.
Citi, however, is optimistic, expecting RBL to grow its credit card portfolio by 10-15% through direct sourcing and new partnerships. Citi views this as a strategic shift under regulatory tightening and believes the move will eventually enhance profitability.
Investec is cautious, anticipating near-term credit growth to slow and cutting its target price. It sees a recovery in growth only by H2FY26 as RBL focuses on diversifying partnerships and direct sourcing.
RBL Bank’s ability to offset the loss through new strategies will be key as investors monitor its execution in the credit card business.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
