RBL Bank's Q2 FY25 Financial Results Show Mixed Performance, MarketsMOJO Gives 'Hold' Call

RBL Bank, a midcap private bank, recently announced its financial results for the quarter ending September 2024. According to the data, the bank has seen a flat performance in this quarter, with a score of -4 compared to 17 in the previous three months.

Despite this, there are some positive aspects to RBL Bank’s financials. The bank has recorded the highest interest earned in the last five quarters, with a growth trend in each quarter. This indicates a positive sales trend in the near term.

However, there are also some areas of concern for the bank. The profit after tax (PAT) for this quarter has fallen by 24.3% year on year, and the near term trend for PAT is negative. The operating profit (PBDIT) is also at its lowest in the last five quarters, with a negative trend in the near term. This suggests a decline in the company’s efficiency.

The operating profit margin for this quarter is also at its lowest in the last five quarters, indicating a deterioration in the company’s efficiency. The profit before tax less other income (PBT) is also at its lowest in the last five quarters, with a negative trend in the near term. Additionally, the non-operating income for this quarter is 318.07% of the PBT, which suggests that the company’s income from non-business activities is high and may not be a sustainable business model.

Furthermore, the earnings per share (EPS) for this quarter are at their lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The non-operating income for this quarter is also at its highest in the last five quarters, which may not be sustainable in the long run.

Based on these financial results, MarketsMOJO has given a ‘Hold’ call for RBL Bank’s stock. While there are some positive aspects to the bank’s performance, there are also areas of concern that investors should consider before making any investment decisions.