Morgan Stanley has reiterated its ‘Underweight’ rating on RBL Bank, setting a target price of ₹150, indicating a 4% downside from the current market price of ₹156.23 (as of March 11). The brokerage remains cautious on the bank’s near-term growth prospects, despite expectations of improvement in slippages and credit costs in FY26.
RBL Bank has provided a loan growth guidance of 10%-12% for FY26, while margins are expected to remain stable at 4.8%-4.9%. Additionally, the brokerage highlighted that microfinance institution (MFI) collection efficiency remains stable, which is a positive indicator for asset quality.
While some improvements are expected, Morgan Stanley remains cautious about growth acceleration and overall profitability, keeping its ‘Underweight’ stance intact.
Disclaimer: The above stock recommendations are based on brokerage reports and do not constitute financial advice. Investors are advised to conduct their own research before making investment decisions.
