RBL Bank: Rewarded for weathering the note ban

RBL Bank scrip rose by about 5% as it continued to rerate on positive December quarter results

On a day when most banking stocks were under pressure, RBL Bank scrip rose by about five per cent as it continued to rerate on positive December quarter results. 

The bank’s performance exceeded expectations on many fronts, the most noteworthy being its loan book expanding 46 per cent at Rs 26,773 crore year-on-year despite demonetisation and an overall weak lending climate. 

RBL’s 62 per cent of credit growth comes from corporate lending. Sixty-three per cent of the bank’s total advances is working capital loans. This segment hasn’t witnessed a dearth in demand for RBL unlike project loans or other term