He says mid range of 20%
Anurag Shah , Ahuja said the bank expects its profit growth for the fiscal to remain between mid-high and 20%.
Anyone know if RBL has exposure to cafe coffee Day? Seems some insiders know something about…
They had exposure in FY 17 as per AR but no exposure now. These loans are secured and provided against land.
Negative news spreads like fire and even more damaging if its an FNO stock.
All these below bank had exposure earlier but none fell as RBL bank. Its the shorters who are cashing in on negative sentiments and I dont blame them as its giving opportunity to add at lower levels.
standard chartered
oriental bank
axis bank
idfc bank
indusind bank
BOB
south indian
yes bank
kotak
tata finance
chola
icic bank
HDFC bank
bajaj finance
dcb bank
Disc - Holding and added today
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Don’t know about now but as per AR 2018 they had around Rs. 360 cr exposure.
Also as per AR 2018 they have exposure to Sical Logistics of approx. Rs. 100 cr as on March 2018.
Coffee day group acquired Sical logistics which they have kept as corporate guarantee for taking loan.
Here is a snapshot of the amounts Coffee Day Enterprises owes to RBL bank from coffee day enterprises 2018 AR. 4th column is as of March 2018 and 5th column is as of March 2017.
So from the 383 in AR 2018 owed to RBL bank, only 174 cr is left acc to MCA?
Disclosure: invested
If one wants to study the latest troubles that banks face, RBL Bank would be a good place to start. The private lender’s stock has been hammered over the past ten days, with a value erosion of 31%. Investor angst became evident right after the bank’s management, two weeks ago, indicated that its asset quality could be under pressure in the coming quarters.
That and the fact that growth may be subdued made investors not so optimistic about the otherwise strong first quarter metrics the lender released on 19 July.
RBL Bank reported a 41% jump in its net profit for April-June, driven by a healthy 48% growth in core income. The lender also reported steady gross bad loan ratio for the June quarter but an increase in slippages.
But there were many pain points in the bank’s balance sheet that investors had to take note of. The latest being the lender’s exposure to Coffee Day Enterprise. The company’s stock took a beating, pulling down, along with it, those of lenders having exposure to it.
RBL Bank has clarified that loans to the beleaguered firm are standard and it continues to monitor the situation. But investors are not willing to give up on caution.
Adding to the pain is the fact that non-bank finance companies (NBFCs) are among the top three exposures of RBL Bank which bother investors given the liquidity and growth problems in the sector.
RBL Bank has guided for a potential corporate slippage of ₹1,000 crore in the coming quarters.
In short, even if the lender continues to report high double-digit growth, the increase in potential stress is a dampener. What buttressed its valuations was the fact that the lender managed to grow at a fast pace while keeping asset quality intact.
the stock trades at a multiple of twice its estimated book value for FY21.
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Good points by @mrai74 in addition to those one may considering the latest trouble in the job market e.g Jet crises,automobile layoffs , private salaried person are sandwiched between the high expenses paying kids fees and they are missing payments on mortgages .The overall situation is pathetic I may be wrong but the middle class’s credit rating score are not remain same as compare with the time they secured the loans . I my opinion the next NPA may be from the individual persons However the General perception of Banks and NBFC is that lending to person as compare to corporate better because the formers have better related these loan to self pride and honour … But in near term may be 1 to 2 year the peroformance by the Finacial sector may be below satandards unless some big REFORMS made by the govt to improve the employment. I being in govt sector we are constantly pushed to get Employment demand as Govt organising the mega JOB fairs though this is not our primary function )"(I work in indirect taxation ) . But the market condition are just not right . One may be stay cautious in these conditions and choose wisely to invest …
regards
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Discussion with Vishwavir Ahuja on CNBC. Gives insights on why lower ROE, Capital Raising Plans/requirement and critical mass to strate gaining on Credit Card Business and Retail Banking.
Answered querry on worry of having npa from non wholesale/Retail business as well.
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Rbl banks underwriting being authenticated by cartica capitals founder Teresa, as they are a big investor in RBL their views can be biased, watch the video from 10 mins onwards
Don’t go by what they say publicly and what they do later. Lot of these firangi’s are the first to run away when something goes wrong.
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