RBL Bank has been upgraded to a “Hold” rating by MarketsMojo, a financial research firm. Despite the upgrade, the firm notes that the bank’s strong lending practices and fundamentals remain attractive. RBL Bank has demonstrated a track record of steady growth, with a strong focus on retail lending and a significant presence in the rural banking space. The bank’s asset quality has also improved significantly, with gross non-performing assets (NPAs) declining to 3.6% as of September 2022. MarketsMojo notes that RBL Bank’s credit cost is expected to remain low, driven by its strong lending practices and granular credit underwriting. The firm also highlights the bank’s strong franchise in the rural banking space, with a significant presence in 14 states across India. Overall, the upgrade to a “Hold” rating reflects MarketsMojo’s confidence in RBL Bank’s ability to deliver steady growth and strong financial performance in the medium term.
