BSE:540065

Stock Analysis Report

Executive Summary

RBL Bank Limited operates as a scheduled commercial bank in India.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has RBL Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540065 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

540065

-2.9%

IN Banks

-1.5%

IN Market


1 Year Return

-44.7%

540065

8.2%

IN Banks

10.7%

IN Market

Return vs Industry: 540065 underperformed the Indian Banks industry which returned 8.2% over the past year.

Return vs Market: 540065 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

540065IndustryMarket
7 Day-7.7%-2.9%-1.5%
30 Day-6.5%-4.4%-2.7%
90 Day-8.3%-4.3%1.3%
1 Year-44.5%-44.7%8.6%8.2%12.7%10.7%
3 Year-27.2%-28.0%10.7%9.5%22.0%15.1%
5 Yearn/a10.1%6.6%34.5%22.0%

Price Volatility Vs. Market

How volatile is RBL Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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Valuation

Is RBL Bank undervalued compared to its fair value and its price relative to the market?

21.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540065 (₹306.85) is trading above our estimate of fair value (₹48.92)

Significantly Below Fair Value: 540065 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540065 is poor value based on its PE Ratio (21.6x) compared to the Banks industry average (18x).

PE vs Market: 540065 is poor value based on its PE Ratio (21.6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540065's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540065 is overvalued based on its PB Ratio (1.3x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is RBL Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RBL Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RBL Bank performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540065 has high quality earnings.

Growing Profit Margin: 540065's current net profit margins (16.2%) are lower than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: 540065's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: 540065's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540065 had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Banks industry average (25.5%).


Return on Equity

High ROE: 540065's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RBL Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 540065 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540065's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 540065's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 540065 has a sufficient allowance for bad loans.

Low Risk Liabilities: 540065's liabilities are made up of primarily low risk sources of funding.

Loan Level: 540065 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 540065's loans are broadly funded by customer deposits.

Level of Bad Loans: 540065 has a high level of bad loans (3.37%)


Next Steps

Dividend

What is RBL Bank's current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 540065's dividend (0.88%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 540065's dividend (0.88%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540065 has been paying a dividend for less than 10 years.

Growing Dividend: 540065's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19%), 540065's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Vishwavir Ahuja (59yo)

9.7yrs

Tenure

₹24,412,041

Compensation

Mr. Vishwavir Ahuja, B.Com, MBA, MS, has been the Managing Director and Chief Executive Officer of RBL Bank Limited (also known as The Ratnakar Bank Ltd.) since July 03, 2010. Mr. Ahuja serves as the Head  ...


CEO Compensation Analysis

Compensation vs Market: Vishwavir's total compensation ($USD341.14K) is below average for companies of similar size in the Indian market ($USD638.51K).

Compensation vs Earnings: Vishwavir's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vishwavir Ahuja
MD, CEO & Director9.7yrs₹24.41m1.95% 3.0b
Pankaj Sharma
Chief Operations Officer1.1yrsno datano data
Sankarson Banerjee
Chief Information Officer1.3yrsno datano data
Rajeev Ahuja
Head of Strategy3yrs₹22.76m0.97% 1.5b
Neeta Mukerji
Chief Credit Officer4.4yrsno data0.027% 41.1m
Ramnath Krishnan
Chief Risk Officer2.1yrsno data0.0098% 15.1m
Gangaram Chougule
0yrsno datano data
Babgonda Patil
0yrsno datano data
Amrut Palan
Chief Financial Officer0.3yrsno datano data
Satish Dhawan
Chief Infrastructure & Administration Officer7.5yrs₹6.20mno data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 540065's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vishwavir Ahuja
MD, CEO & Director9.7yrs₹24.41m1.95% 3.0b
Rajeev Ahuja
Head of Strategy3yrs₹22.76m0.97% 1.5b
Vijay Mahajan
Non-Executive Director1.8yrs₹100.00k0.0098% 15.1m
Ishan Raina
Independent Director3.8yrs₹1.19m0.00027% 414.6k
Dhanushkodi Sivanandhan
Independent Director7.2yrs₹1.20m0.00010% 153.6k
Veena Mankar
Additional Non-Executive Director0.3yrsno datano data
Ranjana Agarwal
Additional Independent Director0.3yrsno data0.0034% 5.2m
Prakash Chandra
Non-Executive Part Time Chairman1.8yrs₹2.83m0.00011% 168.9k

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 540065's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540065 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

RBL Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RBL Bank Limited
  • Ticker: 540065
  • Exchange: BSE
  • Founded: 1943
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹153.552b
  • Shares outstanding: 508.37m
  • Website: https://www.rblbank.com

Number of Employees


Location

  • RBL Bank Limited
  • One Indiabulls Centre
  • Tower 2B, 6th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540065BSE (Mumbai Stock Exchange)YesOrdinary SharesININRAug 2016
RBLBANKNSEI (National Stock Exchange of India)YesOrdinary SharesININRAug 2016

Biography

RBL Bank Limited operates as a scheduled commercial bank in India. It operates through Corporate/Wholesale Banking, Retail Banking, Treasury, and Other Banking Operations segments. The company’s deposit products include savings accounts, current accounts, and fixed deposits. It also offers loans against property, overdraft against property, home loans, business loans, personal loans, education loans, auto loans, loans against gold and deposits, and working capital finance; life, general, and health insurance products; and investment, depository, treasury, cash management, mergers and acquisitions advisory, wealth management, foreign exchange risk management, debt capital market, loan syndication, derivative, bullion purchase, and currency and interest rate related services, as well as other value added services. In addition, the company provides short term, structured, and offshore finance; term loans; trade finance and service products; equity solutions; sales bill and invoice discounting; purchase bill and invoice financing; letter of credit; export credit in foreign currency; rupee export credit, trade credit, and buyers and suppliers credit services; bank guarantees; standby letters of credit; and documentary collection, money transfer, and receivables management services. Further, it offers agribusiness, commodity, and warehouse finance; and farm mechanization finance products. Additionally, the company offers debit and credit cards; payment and collection solutions; and mobile, Internet, and ATM services, as well as NRI, signature, and development banking services. As of March 31, 2019, it operated a network of approximately 324 bank branches; 993 business correspondent branches, including 226 banking outlets; and 341 ATMs in 28 Indian states and Union Territories. The company was formerly known as The Ratnakar Bank Limited and changed its name to RBL Bank Limited in August 2014. RBL Bank Limited was founded in 1943 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:09
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.