Shares of RBL Bank are likely to be in focus after Citi maintained a ‘Buy’ rating on the stock with a target price of Rs 230 per share.
Citi highlighted that stress in RBL Bank’s Joint Group Lending (JGL) and credit card portfolios subsided during the fourth quarter (Q4FY25), with slippages at 4.7% surprising positively. The credit cost settled at 3.7% after utilization of existing buffers.
Net interest margins (NIMs) remained stable at 3.89% for the quarter. Citi also pointed out that at the current valuation of 0.6x FY27 estimated book value, the stock appears inexpensive.
RBL Bank reported its Q4 results:
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Net profit declined 80.5% year-on-year to Rs 68.7 crore compared to Rs 352.6 crore a year ago.
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Net interest income (NII) decreased 2.3% year-on-year to Rs 1,563 crore compared to Rs 1,599.9 crore last year.
At the current market price of Rs 188.09 per share, Citi’s target price of Rs 230 implies a potential upside of about 22%.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.
