Morgan Stanley has reiterated its underweight rating on RBL Bank with a target price of ₹175 per share, implying a potential downside of about 35.4% from the current market price of ₹271.00.
In its financial seminar takeaways, the bank reiterated loan growth guidance of 14–16% year-on-year for FY26, compared with 9% YoY growth recorded in Q1FY26. Management also highlighted continued focus on granular deposits, with CASA and retail deposits (below ₹3 crore) now at 66% of total deposits, up from 47% two years ago.
On asset quality, RBL Bank expressed confidence in improving slippages and credit costs over the coming quarters. The management also clarified that there are no immediate plans to raise capital but said it may consider the option depending on timing and market conditions.
Morgan Stanley, however, maintained a cautious view given the stock’s recent valuations, noting that downside risks outweigh near-term growth prospects.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.