RBL Bank Ltd.
ISIN: INE976G01028 • Market Cap: ₹59,059 Cr
The 5-Pillar Quality Audit for RBL Bank Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.0%), Return on Capital Employed (6.5%), and equity compounding (5.5%).
2. Financial Health & Solvency
Weight: 25%Assesses capital adequacy, provisioning coverage, and asset liability structure.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (6.6%) and 3Y PAT CAGR (-10.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 65.69 vs PEG of 1.80 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 60.0%, backed by 25.8% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (25.8%)
Mutual funds, domestic DIIs, and foreign FIIs hold 25.8%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Financial Services sector with an overall fundamental quality score of 50/100.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 65.69)
A steep valuation multiple of 65.69 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking RBLBANK against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 50/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare RBLBANK directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| RBL Bank Ltd. (RBLBANK)Current | 50/100 | ₹59,059 Cr | 65.69 | 6.5% | N/A | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: RBL Bank Ltd.
Q:What is the 5-Pillar Fundamental Score for RBL Bank Ltd. (RBLBANK)?
RBL Bank Ltd. has a RupeeTools Fundamental Score of 50/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (55/100), Financial Health (40/100), Growth (35/100), Valuation (45/100), and Ownership Quality (80/100).
Q:Is RBLBANK fundamentally strong for long-term investment?
RBLBANK currently holds a moderate quality rating of 50/100. While it operates in the Financial Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does RBLBANK pass the Coffee Can Investing filter?
No. RBLBANK does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does RBLBANK compare against other Financial Services peers?
Within India's Financial Services sector, RBLBANK trades at a P/E of 65.69 and generates an ROCE of 6.5%. Compare its 5-Pillar score of 50/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.