RBL Bank (Photo| Special arrangement) 
Business

RBL share tanks 7 per cent on slowing deposit growth

The bank said asset quality parameters on the portfolio continue to see improvement in Q1FY23, in line with the improving trend of the past few quarters.

Express News Service

MUMBAI: The RBL Bank share tanked 6.9% to `81.5 on Tuesday after the lender said in a business update to the stock exchanges that its deposits grew 6% to Rs 79,217 crore in the June quarter - a multi-quarter low - which disappointed the Street. The growth was flat from the preceding quarter’s Rs 79,007 crore.

The lender saw R Subramaniakumar taking charge as CEO on June 24 from the interim MD & CEO Rajeev Ahuja. The latter took charge after the surprise exit of Vishwavir Ahuja in December last year.
The CASA, however, improved 14% year-on-year (YoY) to Rs 28,525 crore, with CASA ratio rising by 36%. CASA ratio is a measure of deposits in the current and savings accounts to a bank’s total deposits.

A higher ratio means that a greater portion of the lender’s deposits is in current and savings accounts, implying a lower cost of funds. The bank said asset quality parameters on the portfolio continue to see improvement in Q1FY23, in line with the improving trend of the past few quarters.

While gross advances grew 7% yoy, retail advances de-grew 5% YoY. Monthly options data suggests the stock has support at Rs 80 and Rs 75 while resistances kick in at Rs 90 and Rs 100. It has fallen from a 52-week high of Rs 226.40 on July 8 last year to a low of Rs 74.15 on June 20 .

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