RBL Bank Q4 Review – Asset Quality Ratios Improve; Higher Provisioning Drives Earnings Miss: Motilal Oswal

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RBL Bank Ltd. reported weak earnings in Q4 FY21, affected by elevated provisions and tepid net interest income growth.

The management increased provisioning in its delinquent unsecured portfolio.

On the business front, deposit growth picked up sequentially led by current account and savings account, while loan growth improved QoQ.

However, growth in its credit cards portfolio remains muted.

The management hinted at a change in business strategy, with increasing focus towards home, two-wheeler, tractor, and gold loans, while de-risking its loan book by pruning the mix of unsecured portfolio other than credit cards/micro finance institution.

Click on the attachment to read the full report:

Motilal Oswal RBL Bank Q4FY21 Result Update.pdf


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