RBL Bank Gains Around 2% After Reporting March Quarter Results

Share price of RBL Bank today gained around two per cent on Wednesday, May 5, a day after the bank announced its January-March quarter results for the financial year 2020-21. On Wednesday, RBL Bank opened on the BSE at Rs 179.45, registering an intra day high of Rs 186.75 and an intra day low of Rs 179.45, in the trading session so far. According to a regulatory filing by the bank to the stock exchanges, the private sector bank reported a net profit of Rs 75 crore in the March quarter, marking a 34 per cent year-on-year decline.

According to the statement, RBL Bank net interest income or NII in the fourth and last quarter of the financial year 2020-21 fell 11 per cent year-on-year to Rs 906 crore. The lender's net profit and net interest income were below the estimates of analysts.

''We expect RBL to resume gradual acceleration in growth (14-25 per cent over FY22-24E), but the migration toward the secured portfolio could be margin dilutive. Near-term asset quality too could be at risk in the wake of the raging second Covid-19 wave, leading to elevated LLP. Accordingly, we cut our earnings estimates for the financial year 22-23 by 12-13 per cent,'' said Emkay Global Financial Services Limited.

On the NSE, RBL Bank opened at Rs 180.25, touching an intra day high of Rs 186.90 and an intra day low of Rs 180.25, in the session so far. It was last trading 1.43 per cent higher at Rs 184.35 on the NSE.

Shares of RBL Bank were last trading 1.35 per cent higher at Rs 184.20 on the BSE.