Zerodha picks stake in this banking stock during Q3

As per the recent shareholding pattern released on the BSE, Zerodha Broking has bought 1.26% stake or 75,53,944 equity shares in the private lender during the October-December 2022 period. The brokerage did not hold any stake in the bank during the previous quarter of September 2022.

RBL Bank, a private sector bank, offers specialized services under five business verticals namely: Corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Retail Assets and Treasury and Financial Markets Operations. The banking stock has gained more than 26% in a year’s period.

For the quarter ended September 2022 (Q2 FY23), the mid-size lender had said that massive drop in provisions boosted its bottom-line by almost seven times to ₹202 crore in the quarter to September from ₹31 crore in the year-ago period. Its net interest income (NII) grew 16% year-on-year (YoY) to ₹1,064 crore while net interest margin (NIM) was at 4.55%. 

Bank’s provisioning for bad loans and contingencies fell to ₹242 crore for Q2FY23 from ₹651.5 crore parked by the bank in Q2FY22. Its gross non-performing asset (NPA) ratio improved to 3.80% during September 2022 period as against 4.08% as on June 30, 2022 while Net NPA ratio was 1.26% against 1.16% quarter-on-quarter (QoQ).

R Subramaniakumar, MD & CEO, RBL Bank had said, “We have completed H1 FY23 on a satisfactory note on all fronts. H1FY23’s profitability over H1FY22 is substantially improved. The advances growth is starting to gain momentum and we expect to see this continue. Granular deposit growth is picking up momentum and asset quality continues to be stable, with GNPA also trending down over earlier periods.”

Zerodha began operations in August 2010. Born on October 5, 1979, Nithin Kamath launched the startup was with his brother Nikhil Kamath with their own funds and has zero debt. The retail brokerage firm has customers that trade in stocks, currencies, commodities, mutual funds, bonds through Zerodha app.