RBL Bank (RBL), formerly Ratnakar Bank, was founded in 1943 and is a 75-year
old bank now. Post induction of Mr. Vishwavir Ahuja, RBL has transformed from
a small & regional bank to a new age bank with all the products and
technologies that any private bank has to offer. The bank’s advances have
registered healthy CAGR of 42% over FY2014-18. As of Q2FY2019, it has
branch network of 268 and CASA ratio of 24.5%; wholesale lending forms 59%
of advances and retail 41%.

Outlook & valuation: RBL Bank currently trades at 2.9x its FY2020E book value,
which we believe is reasonable for a bank with focused management, highgrowth
traction, improving CASA and prospects of improvement in NIM & return
ratio. Hence, we recommend Buy on the stock, with a Target Price of `690.

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