Buy RBL Bank, target price Rs 240: Antique Stock Broking

Antique Stock Broking has given a buy rating to RBL Bank with a target price of Rs 240. The share price moved up by 0.42 per cent from its previous close of Rs 167.10. The stock’s last traded price is Rs 167.80.

RBL Bank Ltd., incorporated in the year 1943, is a banking company (having a market cap of Rs 8503.23 Crore).

Financials
The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 1992.07 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 932.68 Crore (.00% of total assets). For the quarter ended 30-06-2020, the company reported a Consolidated Interest Income of Rs 1885.82 Crore, up .34 % from last quarter Interest Income of Rs 1879.44 Crore and up 12.32 % from last year same quarter Interest Income of Rs 1679.01 Crore. The bank reported net profit after tax of Rs 154.42 Crore in latest quarter.

Investment Rationale
The brokerage expects earnings of RBL Bank (on a lower base) to rebound by 4 times over FY21-FY23 and return on assets to improve to 1.2% plus by FY22/FY23. The brokerage said investors' concerns related to corporate exposure ad deposits are now less of a challenge.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2020, while FIIs held 29.3 per cent, DIIs 22.5 per cent and public and others 48.3 per cent.