RBL Financial institution Ltd.’s fourth quarter outcomes confirmed progress on asset high quality, however brokerages stay divided on the tempo of restoration. Whereas credit score prices remained elevated, slippage traits within the unsecured e-book confirmed seen enchancment, resulting in a cautious optimism.
BofA International Analysis
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Maintained ‘underperform’ score and raised goal value to Rs 175 from Rs 150.
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Lender noticed secure NIMs, 2.4% QoQ mortgage development, and powerful 8.4% QoQ CASA development, BofA stated.
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Full provisioning towards MFI GNPA and 75% protection on SMA pool.
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Accelerated MFI provisioning units a cleaner slate for fiscal 2026.
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Unsecured e-book slippages seemingly peaked.
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Total fiscal 2026 mortgage development goal is 16-18% with robust development in secured retail.
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Administration expects restoration in monetary 12 months 2026 RoA with considerably decrease credit score prices.
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Financial institution is comfy with present CET1 degree and expects no capital elevate in fiscal 2026.
JPMorgan
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Maintained ‘underweight’ score with a goal value of Rs 140.
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Gross and internet slippages, albeit elevated, improved quarter-on-quarter in each the MFI and bank card books.
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Financial institution might look to lift capital at 12.8-13% CET1.
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Cautions {that a} valuation re-rating could take time, given sluggish enchancment in return ratios.
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Steerage signifies that e-book combine will proceed to shift away from unsecured. It will proceed to weigh on margins.
Citi
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Maintained ‘purchase’ score and raised goal value to Rs 230.
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Highlighted that stress in JLG and bank card portfolios has largely stabilised.
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Credit score prices peaked at 3.7%, anticipated to fall beneath 2% in monetary 12 months 2026.
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Expects robust development in retail secured and business banking segments.
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Views present valuation (0.6 occasions fiscal 2027E e-book) as cheap.
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Progress can be led by retail secured and business banking.
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With stress recognition and provisioning nearly behind, RoA visibility improves.
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