Outlook & Valuation: RBL Bank’s fresh set of stressed pool would push back ROA
of 1.5% to Q2FY2021. We expect RBL Bank to grow its advances at CAGR of 27%
over FY2019-21E. Improvement in CASA, higher share of retail book and inhouse
priority sector lending will support NIM going forward. At CMP, RBL trades
at 1.4x FY21E P/ABV. We maintain our Buy rating with Target Price of `410.

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