InvestorQ : RBL Bank declared growth in profits in Q4. Can I accumulate the stock for the long term?
rhea Babu made post

RBL Bank declared growth in profits in Q4. Can I accumulate the stock for the long term?

Answer
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rhea Babu answered.
1 year ago


RBL Bank is one of the fastest private banks in India and has also performed very well in the stock market since its listing.

Results highlights

Net profits of RBL Bank jumped by 39% to Rs.247 crore in the fourth quarter ended March 2019 supported by an expansion of its net interest margin (NIM) to 4.23%. This is among the best averages for NIM in the private banking space. Gross NPAs stood at Rs.755 crore which translates into 1.38% of its total assets, which is extremely competitive. Net interest income of the bank was up by 47% at Rs.738 crore for the quarter. Due to a sharp rise in provisioning, the bank’s net NPAs have fallen to 0.69% in the quarter from 0.72% in the previous quarter.

Is RBL Bank a buy?

AT the current price of Rs.677, the bank is available at 35X rolling four quarter earnings. This makes the stock fairly attractive compared to its peers in the private banking space. With is strong focus on the consumer sector, RBL Bank is a good medium term plan on the consumption growth in India. One can look at the stock as one of the safer bets in the banking sector.