Shares of RBL Bank opened nearly 2 percent higher in Thursday's (October 5) trading session after the midcap private sector lender shared its provisional business updates for the quarter ended September 30 (Q2FY24) post Wednesday's market hours.

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The bank said its gross advances rose 21 percent on a year-on-year (YoY) basis in the September quarter to Rs 78,186 crore. Breaking this down, RBL Bank's retail advances grew by 34 percent YoY and 8 percent sequentially, while its wholesale advances rose by 7 percent for the aforementioned quarter. Within the wholesale segment, commercial banking saw a 17 percent YoY growth. The composition of retail to wholesale advances stood at roughly 58:42.

As per the RBL Bank update, its deposits grew 13 percent, amounting to Rs 89,774 crore. The bank has maintained its emphasis on granular retail deposits, constituting approximately 44.2 percent as of September 30, 2023, an increase from the year-ago period's 42 percent.

The private lender said current and savings account (CASA) improved 12 percent YoY to Rs 32,075 crore, as against Rs 28,718 crore in the same quater a year ago.

The CASA ratio stood at 35.7 percent in the quarter under review. It was 36.2 percent in the September quarter of last year.

Global brokerage firm Morgan Stanley has maintained its 'underweight' rating on RBL Bank with a target price of Rs 210 a share, implying a potential downside of 15.7 percent from the current market levels.

Shares of RBL Bank settled 2.52 percent lower at Rs 249.15 apiece on the NSE on Wednesday. The stock has risen about 6 percent in the last one month. It is up 37 percent in 2023 so far.

(Edited by : C H Unnikrishnan)

First Published:Oct 5, 2023 9:07 AM IST