For RBL Bank, credit cost is more important than growth

RBL Bank stock lost 40% of its value in 2024, and that had very little to do with the growth in advances and deposits. Instead, it was all about the asset quality issues.

- Manish Joshi

Its business update for the December quarter (Q3FY25), which shows year-on-year growth of 13% and 15% in advances and deposits, respectively, has been met with muted reaction by the Street.

Investors are more worried about the slippages in credit card loans and microfinance loans.

As such, the bank's advances and deposits year-on-year growth was healthy in Q2FY25 at 15% and 20%, with a decent interest spread, i.e. the gap between the yield on advances and cost of deposits.