Citigroup has upgraded its target price for RBL Bank to ₹285 from ₹230 while maintaining a Buy rating, citing expectations of improving asset quality and credit cost normalisation. The brokerage has added the stock to its 90-day catalyst watch list.
RBL Bank shares surged 3.19 per cent to ₹247.01 during Monday’s trading session, with the stock hitting an intraday high of ₹249.80. The counter saw active participation with 119.73 lakh shares changing hands, generating a turnover of ₹294.89 crore.
Citi expects the bank’s Return on Assets (RoA) trajectory to improve to 45-50 basis points, driven by the much-awaited normalisation of credit costs. The brokerage anticipates stress in the Joint Group Liability and credit card segments to further subside in the first quarter, with slippages moderating to 4.5 per cent compared to 4.7 per cent recorded in Q4.
The stock opened at ₹241.50 against the previous close of ₹239.38, touching a low of ₹241.50 during the session. Market participants showed mixed sentiment with sell quantity at 17.23 lakh shares exceeding buy quantity of 12.96 lakh shares.
RBL Bank’s market capitalisation stands at ₹15,043 crore, with deliverable quantity accounting for 27.17 per cent of total traded volume. The stock trades within its 52-week range of ₹146.10 to ₹270.39, with current levels approaching the yearly high achieved in June 2024.