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Should you buy, sell, hold RBL Bank shares after Q3 results?

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RBL Bank share price: The RBL Bank stock gave up initial gains on Friday, a day after the lender reported a strong set of quarterly numbers. On BSE, RBL shares fell as much as 3.7 percent to Rs 147.6, having risen as much as 2.7 percent to Rs 157.4 earlier on Friday.

Should you buy, sell, hold RBL Bank shares after Q3 results?
RBL Bank shares were in focus on Friday, a day after the private sector lender reported a strong set of earnings for the December quarter. The stock of RBL Bank gave up initial gains soon after a positive start. On BSE, RBL shares fell as much as 3.7 percent to Rs 147.6, having risen as much as 2.7 percent to Rs 157.4 earlier on Friday.
After the market hours on Thursday, RBL Bank reported a net profit of Rs 156.1 crore for the third quarter of FY22, as against a net profit of Rs 147.1 crore for the corresponding period a year ago.
Its quarterly net interest income (NII) increased 11.3 percent to Rs 1,010.4 crore.
Analysts in a CNBC-TV18 poll had predicted the bank's net profit at Rs 88.5 crore and NII at Rs 923.8 crore.
The lenders gross NPAs came down to Rs 2,901.9 crore in the December quarter from Rs 3,130.9 crore in the July-September period. Its net NPAs came down to 1.85 percent in Q3 from 2.14 percent in the previous quarter
What brokerages say
Credit Suisse
The brokerage maintained an 'underperform' rating on the lender and reduced its target price to Rs 135 from Rs 180. RBL Bank's growth continues to lag and core profitability remains muted according to Credit Suisse.
Credit Suisse lowered its FY23 and FY24 earnings per share estimates for RBL Bank by 8-13 percent.
CLSA
The brokerage upgraded RBL Bank to 'buy' with a target price of Rs 200. The lender's NII trend improved in Q3 and it is finally getting some growth traction, though its core pre-provision operating profit missed estimates marginally due to elevated opex, according to CLSA.
CLSA cut its FY23 and FY24 earnings estimates for RBL Bank by 9-10 percent.
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