RBL Bank shares remain in focus on three important triggers

Shares of private sector lender RBL Bank Ltd. are in focus on Thursday, September 25, driven by multiple key developments. The stock remains under the futures and options (F&O) ban.

Global brokerage firm Citi has maintained its 'Buy' rating on RBL Bank, with a price target of ₹300 per share.

Key takeaways from the management meet indicate that net interest margins (NIMs) have bottomed out in Q1, with improvements expected from Q2 onwards.

Loan growth is gaining momentum, led by secured retail and commercial banking, while microfinance (MFI) disbursements now exceed repayments, alleviating concerns of further portfolio run-downs.

Stress in the joint liability group (JLG) segment is easing, though credit card normalisation is taking longer. Core fee income is gradually building on the Q1 base, and cost control initiatives are underway, with meaningful impact anticipated from Q3.

Overall, the bank retains a positive outlook, expecting steady return on assets (RoA) improvement over the next 4-6 quarters.

RBL Bank's annual general meeting (AGM) is scheduled for tomorrow. The board has approved a fundraising plan that includes a ₹3,500 crore qualified institutional placement (QIP) and ₹3,000 crore via debt securities, subject to shareholders' approval alongside other proposed resolutions.

Shares of RBL Bank were trading 0.55% higher at ₹271.75 on Thursday. The stock has gained 6% in the past month and is up more than 70% year-to-date.