For RBL Bank on a sequential basis, the business momentum is one of the best seen in the last 16 quarters. The deposit growth is close to 9 percent and loan growth is more than 5 percent.
Their low-cost deposit momentum has been strong growing at 36 percent year on year and about 11.5 percent quarter on quarter, which has aided in low-cost deposit ratio improving on a sequential basis to 31.8 versus 31 percent in the previous quarter.
What to watch for?
The provisions could remain high given the fact that we are seeing COVID related moratorium book which are showing asset quality pains right now for all the banks.
Watch for the credit card business especially in terms of collections and recovery — that will be the key.
Commentary with respect to credit cost and loan growth going ahead will be keenly watched.
Our poll suggests a net interest income (NII) decline of 10 percent YoY while it will be up 1 percent sequentially. We are expecting profit growth of 3.3 percent YoY but a decline of close to 20 percent on a sequential basis.
Watch the accompanying video of CNBC-TV18’s Abhishek Kothari for more details.