Should you buy, sell or hold RBL Bank shares after lender stages mixed quarterly performance?

RBL Bank shares were in high demand on Saturday after the private sector lender reported an 11.5 per cent year-on-year increase in net profit on the back of 21 per cent growth in net interest income (NII) for the October-December period.

RBL Bank shares jumped in a full trading session on Saturday even as the lender staged a mixed financial performance for the October-December period. The stock of the private sector bank rose by as much as Rs 11.8, or 4.4 per cent, to Rs 277.5 apiece on BSE.

In the final moments of trade on Friday, RBL Bank reported an 11.5 per cent year-on-year increase in net profit to Rs 233 crore for the fiscal third quarter on the back of 21 per cent growth in net interest income (NII), or the difference between interest earned and interest paid.

Its slippages, or new bad loans, however, increased 9.5 per cent and 23.1 per cent on year-on-year and quarter-on-quarter bases, respectively.

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RBL Bank reported a 56.5 per cent increase in provisions compared with the year-ago period.

Asset quality stable

The lender's gross non-performing assets (NPAs) as a percentage of its total loans remained unchanged at 3.12 per cent as the previous quarter.

What analysts say

Citi maintained a 'sell' rating RBL Bank after the earnings announcement and reduced its target price for the stock to Rs 257 from Rs 275.

Morgan Stanley retained its 'underweight' call on the stock with a target of Rs 250.

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RBL Bank Q3 Results