NSEI:RBLBANK

Stock Analysis Report

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Executive Summary

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


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: RBLBANK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

RBLBANK

1.1%

IN Banks

1.5%

IN Market


1 Year Return

-43.2%

RBLBANK

-26.3%

IN Banks

2.2%

IN Market

Return vs Industry: RBLBANK underperformed the Indian Banks industry which returned -26.5% over the past year.

Return vs Market: RBLBANK underperformed the Indian Market which returned 1.9% over the past year.


Shareholder returns

RBLBANKIndustryMarket
7 Day2.2%1.1%1.5%
30 Day-13.2%-9.1%0.09%
90 Day-4.3%-6.1%7.9%
1 Year-42.7%-43.2%-26.3%-26.3%4.2%2.2%
3 Year-66.1%-66.7%-43.1%-43.7%2.2%-2.7%
5 Yearn/a-22.8%-24.4%37.1%26.8%

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

Valuation

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

20.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RBLBANK (₹170) is trading above our estimate of fair value (₹14.51)

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


Price To Earnings Ratio

PE vs Industry: RBLBANK is poor value based on its PE Ratio (20.7x) compared to the IN Banks industry average (15.8x).

PE vs Market: RBLBANK is poor value based on its PE Ratio (20.7x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RBLBANK is overvalued based on its PB Ratio (0.8x) compared to the IN Banks industry average (0.7x).


Next Steps

Future Growth

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

23.2%

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?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBLBANK has high quality earnings.

Growing Profit Margin: RBLBANK's current net profit margins (10.8%) are lower than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: RBLBANK's earnings have grown by 10% per year over the past 5 years.

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

Earnings vs Industry: RBLBANK had negative earnings growth (-58%) over the past year, making it difficult to compare to the Banks industry average (11.8%).


Return on Equity

High ROE: RBLBANK's Return on Equity (3.7%) is considered low.


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


Financial Institutions Analysis

Asset Level: RBLBANK's Assets to Equity ratio (8.4x) is low.

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

Low Risk Liabilities: 74% of RBLBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: RBLBANK has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: RBLBANK's Loans to Deposits ratio (100%) is appropriate.

Level of Bad Loans: RBLBANK has a high level of bad loans (3.7%).


Next Steps

Dividend

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

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBLBANK's dividend (0.88%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: RBLBANK's dividend (0.88%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: RBLBANK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RBLBANK has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), RBLBANK'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?

1.7yrs

Average management tenure


CEO

Vishwavir Ahuja (60 yo)

10.25yrs

Tenure

₹30,022,875

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 RBL Bank Ltd. (formerly known as Ratnakar Bank Ltd.)) since July 03, 2 ...


CEO Compensation Analysis

Compensation vs Market: Vishwavir's total compensation ($USD406.99K) is about average for companies of similar size in the Indian market ($USD399.55K).

Compensation vs Earnings: Vishwavir's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vishwavir Ahuja
MD, CEO & Director10.25yrs₹30.02m1.34%
₹ 1.2b
Amrut Palan
Chief Financial Officer0.92yr₹8.76mno data
Pankaj Sharma
Chief Operations Officer1.67yrsno datano data
Sankarson Banerjee
Chief Information Officer1.92yrsno datano data
Niti Arya
Company Secretary & Compliance Officer0.92yr₹6.24mno data
Rajeev Ahuja
Head of Strategy3.5yrs₹18.86m0.79%
₹ 681.6m
Gangaram Chougule
no datano datano data
Babgonda Patil
no datano datano data
Satish Dhawan
Chief Infrastructure & Administration Officer8.08yrs₹6.20mno data
Sanker Parmeswaran
Head of Legal0.33yrno datano data
Deepak Varne
Chief Manager of Development and Marketingno datano datano data
Shanta Gandhi
Head of HRno data₹6.86m0.022%
₹ 19.2m

1.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: RBLBANK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vishwavir Ahuja
MD, CEO & Director10.25yrs₹30.02m1.34%
₹ 1.2b
Rajeev Ahuja
Head of Strategy3.5yrs₹18.86m0.79%
₹ 681.6m
Vijay Mahajan
Non-Executive Non-Independent Director2.42yrs₹990.00k0.0084%
₹ 7.2m
Ishan Raina
Non-Executive Independent Director4.42yrs₹2.35m0.00015%
₹ 129.9k
Dhanushkodi Sivanandhan
Non-Executive Independent Director7.75yrs₹2.22m0.000080%
₹ 69.3k
Veena Mankar
Additional Non-Executive Non-Independent Director0.92yr₹570.00k0.000080%
₹ 69.3k
Ranjana Agarwal
Additional Non-Executive Independent Director0.83yr₹365.00k0.0029%
₹ 2.5m
Prakash Chandra
Independent Non-Executive Part Time Chairman2.33yrs₹3.17m0.0018%
₹ 1.5m

3.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: RBLBANK's board of directors are not considered experienced ( 3 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: RBLBANK 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 18.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: RBL Bank Limited
  • Ticker: RBLBANK
  • Exchange: NSEI
  • Founded: 1943
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹86.585b
  • Shares outstanding: 509.18m
  • 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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 12:32
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.