Here is Morgan Stanley's take on RBL Bank Ltd,
The improvement in moratorium was led by wholesale banking, where moratorium level improved from 22% to 5% of loans. Non-wholesale banking moratorium improved to 30% vs. 45%.
Valuation is inexpensive, but lack of visibility on asset quality and muted RoE estimates keep us UW: This is driven by high exposure to BBB and below-rated corporates and unsecured retail loan segments. We reduce bear case weight and raise price target, but remain UW given uncertain asset quality. Price Target is Rs 150.
