Credit Suisse maintained an 'underperform' rating on RBL Bank after the private sector lender reported its financial results for the October-December period. The brokerage reduced its target for the RBL Bank stock to Rs 135 from Rs 180.

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RBL Bank shares gave up initial gains on Friday to decline as much as 3.7 percent to Rs 147.6 on BSE.

Credit Suisse said in a research report that RBL Bank's growth continues to lag and core profitability remains muted. It also said the stock has underperformed.

The brokerage lowered its earnings per share (EPS) estimates for RBL Bank for the financial years 2022-23 and 2023-24 by 8-13 percent citing higher operating expenditure.

After the market hours on Thursday, RBL Bank reported a net profit of Rs 156.1 crore for the third quarter of the current financial year, as against a net profit of Rs 147.1 crore for the corresponding period a year ago.

In a regulatory filing, the lender reported net interest income (NII) of Rs 1010.4 crore for the December quarter, up 11.3 percent on a year-on-year basis.

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Analysts in a CNBC-TV18 poll had expected the bank's quarterly net profit at Rs 88.5 crore and NII at 923.8 crore.

RBL Bank's asset quality improved, with gross non-performing assets (NPAs) as a percentage of total loans coming down to 4.84 percent in Q3, from 5.4 percent in the previous quarter.

Its net NPAs came down to Rs 1,075.5 crore in the October-December period, as against Rs 1,200.4 crore in the previous three months.

At 1:50 pm, the stock was down 2.2 percent at Rs 150.

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