RBL Bank shares rise over 3%, defy market crash; here’s why

Shares of RBL Bank rose over 3% amid a weak market sentiment today after the private sector lender said after the bank reported a 14% rise in gross advances to Rs 68,371 crore in the December quarter against Rs 59,967 crore in the corresponding quarter a year ago. Similarly, the gross advances rose 6 percent from Rs 64,608 crore logged in the September 2022 quarter. RBL Bank stock gained 3.08% to Rs 185.50 against the previous close of Rs 179.95 on BSE. The stock hit a 52-week low of Rs 74.15 on June 20, 2022 and a 52-week high of Rs 187.60 on January 3, 2023.

In a year, the stock has gained 37.87 per cent and risen 2% per cent since the beginning of this year. Total 9.28 lakh shares changed hands amounting to turnover of Rs 17.01 crore. Market cap of the lender rose to Rs 11,019 crore on BSE.

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Retail advances of the private lender rose 12% YoY and 7% sequentially while wholesale advances grew 17% YoY and 5% sequentially for the December 2022 quarter . The mix of retail: wholesale advances was approximately 52:48. 

“The bank continues to focus on growing the share of granular retail deposits in the overall deposit mix, with retail deposits (as per liquidity coverage ratio (LCR) definition) at approximately 42.5% as against 41.3% as at the end of the last quarter and 37.9% as of December 31, 2021,” said the bank in its quarterly update. 

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The lender reported a stellar set of earnings in the September quarter. It clocked a 554 per cent year-on-year rise in standalone net profit to Rs 201.55 crore in Q2FY23 as a sharp decline in provisioning for bad loans from a year ago and healthy increase in net interest income boosted the lender’s bottomline.

The huge year-on-year rise in net profit was also caused by a low base. On a sequential basis, the bank’s net profit was only marginally higher from Rs 201.16 crore a quarter ago.Meanwhile, the 30-stock Sensex was trading 459 points lower at 60,198 and Nifty lost 107 points to 17,935 in the afternoon session. The market is trading lower for the second consecutive session today.

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