RBL Bank Latest Results: Citi maintains Buy, target price at ₹440
Citi maintains a Buy rating on RBL Bank with a target price of ₹440. ₹32,472 crore in FCNR(B) deposits were mobilised via the Emirates NBD relationship, equal to 26% of deposits. The deposit inflow is expected to lift FY27 NII by ~7% and PPOP by ~10%. Thin FCNR margins could pressure NIMs by 40-45 bps over the next two quarters. A ₹26,000 crore equity infusion is cited as a partial offset to the NIM compression.
RBL Bank raises about $3.40 billion via RBI's FCNR(B) swap facility
RBL Bank raised approximately $3.40 billion using the RBI's FCNR(B) swap facility. The fundraise was executed under the Reserve Bank of India's Foreign Currency Non-Resident (Banks) swap window. The FCNR(B) mechanism allows banks to attract foreign currency deposits and swap proceeds with the central bank.
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.