RBL Bank climbs 11% despite mixed Q4FY25 show; Citi maintains 'buy'
RBL Bank share price: After a mixed set of Q4 earnings, Citi has continued with its 'buy' call on the stock.
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12:41 PM IST
RBL Bank share price: Shares of RBL Bank climbed 11 per cent in Monday's session (April 28, 2025) to Rs 208.5 even as the private sector lender posted a mixed set of earnings for the quarter ended March 31, 2025. At around 12:08 pm, shares traded higher by over 10 per cent or Rs 19 at Rs 206.8 apiece on the BSE.
RBL Bank Q4FY25 results
For the March quarter, the private sector lender's net profit slipped 81 per cent to Rs 69 crore given the sharp increase in provisions by as much as 90 per cent. In Q4FY24, the lender's net profit stood at Rs 353 crore.
During the quarter, the bank's total income increased to Rs 4,476 crore as against Rs 4,215 crore a year ago, RBL Bank said in a regulatory filing.
Interest income grew to Rs 3,476 crore during the March quarter, while it was Rs 3,339 crore in the same quarter of the previous year. The net interest income (NII) declined 2 per cent on-year to Rs 1,563 crore, in comparison to Rs 1,600 crore in the same quarter of the previous fiscal year.
Meanwhile, the net interest margin (NIM) also declined from 5.45 per cent in Q4FY24 to 4.89 per cent in Q4FY25.
Asset quality at the lender also improved with gross non-performing assets (NPAs) dropping to 2.6 per cent of gross advances as of March 31, 2025, from 2.65 per cent as of the same quarter last year. Net NPAs also came down to 0.29 per cent of the advances from 0.74 per cent at the end of 2024.
Brokerages on RBL Bank post Q4 results
Citi has continued with its 'buy' rating on the stock with the target at Rs 230- signifying potential gains of over 22 per cent from the last close. The brokerage pinpointed that stress in JLG or joint liability group, together with the credit card portfolio, subsided in the March quarter. Slippages, which stood at 4.7 per cent during the review quarter, surprised positively.
Credit cost settled at 3.7 per cent post buffer utilization, while NIMs stayed put at 3.89 per cent, added the brokerage.
Furthermore, the brokerage finds valuations for RBL Bank cheap at 0.6x FY27E.
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