Street View: India's RBL Bank faces tougher margin road after Q2 beat
BUZZ-Street View: India's RBL Bank faces tougher margin road after Q2 beat Oct 13 (Reuters) - ** India's RBL Bank RATB.NS reported a near-threefold rise in second-quarter profit on higher loan growth, while inflows from foreign currency deposits raised under a special central bank scheme bolstered its funding base
** Shares slump 6.1% at 392.05 rupees
NIM BOOST SEEN FADING
** Dolat Capital ("sell," PT: 340 rupees) says the Q2 margin surge looks unsustainable, with NIM expansion capped as the bank shifts toward lower-yield secured lending
** Citi ("buy," PT: 505 rupees) says margins face some compression in Q3 as one-off benefits from FCNR flows and liquidity deployment fade
** Emkay ("buy," PT: 475 rupees) says near-term margin pressure is likely before recovery, with earnings still exposed to elevated credit costs
** Nuvama ("buy," PT: 500 rupees) says asset quality is improving, but margin gains could moderate as loan mix normalises
(Reporting by Kashish Tandon in Bengaluru)
((kashish.tandon@thomsonreuters.com; 8800437922))
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