Nuvama raises RBL Bank target price citing Emirates NBD structural advantages
What happened
Nuvama raised its target price for RBL Bank to Rs 500 from Rs 470, while retaining a 'BUY' rating. The brokerage attributed this increase to the Emirates NBD acquisition and FCNR deposit mobilization, viewing them as a structural turning point for the bank. In the September quarter, RBL Bank reported a 37.4% year-on-year increase in net interest income to Rs 2,131 crore.
From indiatimes.com
Why it matters
Nuvama believes the structural advantages provided by Emirates NBD could lead to a sustainable funding advantage, greater scale, and improved margins for RBL Bank. This suggests the parent-subsidiary relationship between RBL Bank and Emirates NBD is viewed as a key driver of future financial performance.
Emirates NBD is reportedly betting on the future of RBL Bank's operations within the Indian market.
From indiatimes.com
Who's involved
- RBL BankIndian private bank whose valuation and performance were reviewed by Nuvama.
- Emirates NBDMiddle Eastern banking group that acquired a controlling 60% majority stake in RBL Bank.