Citigroup Maintains Buy Rating on RBL Bank with ₹390 Target Price Despite Near-Term Challenges
Citigroup maintains its Buy rating on RBL Bank with a ₹390 target price despite RoA missing expectations due to NIM compression and elevated credit costs. The brokerage cites strong ~11% loan growth and multiple recovery catalysts including expected NIM recovery, easing JLG stress, potential ENBD infusion, and credit cost normalization. While near-term earnings may face cuts, these positive factors support the constructive outlook for the private sector lender.
Citi Maintains Buy Rating on RBL Bank with ₹390 Target Price Amid Strong Growth Metrics
Citi maintains Buy rating on RBL Bank with ₹390 target price, citing strong 22% YoY advance growth led by secured retail surge and 25% deposit growth with CASA improving to 33.60%. The bank showed enhanced liquidity metrics with improved LCR and lower LDR, along with stabilized unsecured retail portfolio and RBI approval for ENBD. However, RoA is expected to remain capped at approximately 0.60% due to elevated credit costs impacting profitability despite operational improvements.