India's RBL Bank falls after ending credit card tie-up with Bajaj Finance; brokerages cut PT

RBL Bank

02/12/2024 06:13

** Shares of private lender RBL Bank  RATB.NS  fall 4.8% to
147.72 rupees
    ** Co says it mutually agreed with Bajaj Finance  BJFN.NS 
to stop issuing new co-branded credit cards; BJFN shares down
0.4%
    ** Emkay cuts its FY25/26/27 earnings estimates for RBL by
18%/3%/6% and TP to 250 rupees from Street-high of 325 rupees;
says cut reflects slower near-term growth
    ** Ambit Capital, among the top-rated brokers for RBL as per
LSEG, says other card sourcing channels are growing but won't
fully offset the loss of BJFN partnership; trims PT to 135
rupees from 145 rupees
    ** Ambit, also the highest-rated broker for BJFN, trims
FY26/27E EPS estimates for co by 2%
    ** Avg rating on RATB is close to 'hold,' median PT falls to
220 rupees from 230 rupees - LSEG data
    ** Including session's losses, stock down ~46% YTD while
BJFN is down 10.7%

(Reporting by Yagnoseni Das in Bengaluru)
((mailto:Yagnoseni.Das@thomsonreuters.com;))