IIFL Securities is positive on RBL Bank. It has a 'buy' rating on the stock with a target price of Rs 300 per share.

The financial services company said that despite significant derisking, the stock is at a discount when compared to peers like IndusInd Bank, AU Small Finance Bank and City Union Bank.

Valuations being at a heavy discount to peers makes it attractive given the fact that they are making a shift in the business model and working towards return on assets (ROA) of 1.6 percent and return on equity (ROE) of 13 percent by FY23.

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(Edited by : Niral Sharma)