Morgan Stanley has maintained its ‘Underweight’ stance on RBL Bank, assigning a target price of ₹150 per share, implying a downside from the current market price of ₹175.30. The brokerage highlighted concerns around the bank’s deposit mobilization performance, noting that it has lost market share in deposits even as loan growth remained in line with the system.
However, Morgan Stanley acknowledged the bank’s strategic shift toward retail lending as a positive development, which could enhance granularity and long-term stability. The firm also took note of an improvement in microfinance (MFI) collection efficiency, which rose to 99% in March from earlier levels, reflecting operational resilience in a key segment.
That said, the brokerage flagged sustainability risks around the improved MFI metrics and indicated it will be closely monitoring whether this trend continues in the coming quarters. Despite pockets of strength, the valuation gap and limited visibility on significant outperformance led Morgan Stanley to stay cautious on the stock.
Disclaimer: This article is for informational purposes only. Investors are advised to consult with certified financial advisors before making any investment decisions.
