For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBL Bank Hits 52-Week Low As Brokerages Turn Bearish After Poor Q2 Results

|

The shares of RBL Bank in intra-day trade on Wednesday fell as much as 20% to hit a 52-week low of Rs. 230.55. The fall in the stock price has come after brokerage firms turned cautious on the stock due to its poor September quarterly reports.

RBL Bank Hits 52-Week Low As Brokerages Turn Bearish After Poor Q2 Results
 

The bank has reported a sharp spike in its provisions, at the same time its asset quality has worsened with gross NPAs as a percentage of gross advances increasing 122 bps sequentially to 2.6% and net NPS increasing q-o-q to 1.56%.

Net profit at the bank for the September quarter fell 73.4% to Rs. 54.31 crore in comparison to Rs 204.54 crore in the same period last year.

Earlier the bank owing to tough corporate credit situation faced problems with some of the corporate accounts.

"As a matter of prudence, we have taken higher than required provisions on these accounts which have impacted our bottomline," MD & CEO, RBL Bank said in a BSE filing.

Global brokerages have turned bearish on the stock and have downgraded the stock with an underweight call.

Morgan Stanley after assigning underweight rating to the stock has reduced its target price by 40% to Rs. 240 from the earlier Rs. 400 per share.

JPMorgan also has placed underweight call on the stock of RBL Bank and cut target price by 15% to Rs 280 from Rs 330 as it holds the view that asset quality will have a negative impact on near-term profitability.

Shares of RBL Bank were last quoting lower by 12.16% at Rs. 252 on the BSE.

GoodReturns.in

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more