InvestorQ : How do you see the latest quarterly profit numbers of RBL Bank? Do you believe that the worst over for the stock?
Rashi Mehra made post

How do you see the latest quarterly profit numbers of RBL Bank? Do you believe that the worst over for the stock?

Answer
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sarah Leo answered.
5 months ago


The pressure of bad assets, which came to the fore after the implosion of Coffee Day Enterprises, continues to be an overhang for the stock. For the Mar-20 quarter, RBL Bank reported 54% fall in net profits to Rs.114 crore on the back of sharply higher provisioning. On the positive side, the net interest income was up by 38% at Rs.1021 in the March quarter. Even the net interest margins (NIMs) had expanded sharply to 4.93% from 4.2% in the previous year. For the quarter, the bank has made provisions of Rs.614 crore on account of bad loans and another Rs.115 crore has been provided by the bank for COVID-19 related losses. The bank also admitted that nearly a third of its loan book was under moratorium, which means cash flows will continue to be tight for now. Till the time the moratorium is lifted, the cash flows are likely to be under pressure. The stock is best avoided for now.