Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> will replace <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a> in the <a href="https://www.smartkarma.com/entities/nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">Nifty Bank Index (NSEBANK INDEX)</a> at the close of trading on 30 March.</li>
<li>Index trackers will need to buy over 2 days of ADV on BOB while selling over 2 days of ADV on RBL. There will be capping changes too.</li>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> trades cheaper than its peers on forward PE and price to book and could outperform over the near-term.</li>
</ul>



Bank Of Baroda (BOB IN) will replace RBL Bank Ltd (RBK IN) in the Nifty Bank Index (NSEBANK INDEX) at the close of trading on 30 March.
Index trackers will need to buy over 2 days of ADV on BOB while selling over 2 days of ADV on RBL. There will be capping changes too.

Bank Of Baroda (BOB IN) trades cheaper than its peers on forward PE and price to book and could outperform over the near-term.


NIFTY Bank Index Rebalance: BOB to Replace RBL Bank

Specialist in Indian Banking and Economic Research

Hemindra Hazari

<ul>
<li>Newspaper article pertaining to loan by RBL Bank to Sintex-BAPL highlights either `evergreening' or extreme incompetence by the bank</li>
<li>Rajeev Ahuja, present Acting CEO served on the Credit and Risk Committees which approved the Sintex-BAPL loan</li>
<li>Not desirable that the RBL Bank board selects Rajeev Ahuja as the permanent CEO of the bank</li>
</ul>


Newspaper article pertaining to loan by RBL Bank to Sintex-BAPL highlights either `evergreening' or extreme incompetence by the bank
Rajeev Ahuja, present Acting CEO served on the Credit and Risk Committees which approved the Sintex-BAPL loan
Not desirable that the RBL Bank board selects Rajeev Ahuja as the permanent CEO of the bank


Sintex Loan Fiasco: Is RBL’s Acting CEO Fit to Be a Banker, Let Alone Run a Bank?

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSEBANK INDEX</a> ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.</li>
<li>Based on the index methodology, we see <a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> replacing <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a> in the index.</li>
<li>Passive trackers will need to buy 11 days of delivery volume on <a href="https://www.smartkarma.com/entities/bank-of-baroda" target="_blank" data-smartkarma-citation="entities:545:1" rel="noopener">Bank Of Baroda (BOB IN)</a> while selling 5 days of delivery volume on <a href="https://www.smartkarma.com/entities/rbl-bank-ltd" target="_blank" data-smartkarma-citation="entities:22856:1" rel="noopener">RBL Bank Ltd (RBK IN)</a>.</li>
</ul>


The review period for the NSEBANK INDEX ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.
Based on the index methodology, we see Bank Of Baroda (BOB IN) replacing RBL Bank Ltd (RBK IN) in the index.
Passive trackers will need to buy 11 days of delivery volume on Bank Of Baroda (BOB IN) while selling 5 days of delivery volume on RBL Bank Ltd (RBK IN).


NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank

External broker reports(aggregated public sources), Edelweiss Broking Limited

Edelweiss

External broker reports(aggregated public sources)

Edelweiss Broking Limited

Edelweiss Broking Limited is an Indian Financial services company based in Mumbai, India. The company is a subsidiary of Edelweiss Group. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>RBL Bank’s Q3FY22 results are broadly better than our estimates; however, aggressive customer acquisition in the credit card segment led to substantial growth in operating expenses</li><li>Net revenue grew 10% YoY and 8% QoQ, aided by higher NII income and healthy traction in non-interest income. The bank reported 11bps YoY and 20bps QoQ expansion in NIM</li><li>Operating expenses shot up because of (a) strengthening branch network and workforce and (b) very aggressive customer acquisition in credit card business</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

RBL Bank’s Q3FY22 results are broadly better than our estimates; however, aggressive customer acquisition in the credit card segment led to substantial growth in operating expensesNet revenue grew 10% YoY and 8% QoQ, aided by higher NII income and healthy traction in non-interest income. The bank reported 11bps YoY and 20bps QoQ expansion in NIMOperating expenses shot up because of (a) strengthening branch network and workforce and (b) very aggressive customer acquisition in credit card businessContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

RBL Bank Ltd: On the Recovery Path; Retain ‘BUY

<ul><li>RBI has appointed Mr. Yogesh K Dayal, “Chief General Manager, RBI”, as an additional director on the Board of RBL Bank Limited w.e.f. 24th December, 2021 till December 23, 2023 or till further orders, whichever is earlier. </li><li>In another surprise move, the current MD &amp; CEO of the bank, Mr. Vishwavir Ahuja went on leave with immediate effect. </li><li>The Board has appointed Mr. Rajeev Ahuja (currently the Executive Director) as interim MD &amp; CEO of the Bank with immediate effect, subject to regulatory and other approvals.  Management hosted a conference call today to discuss the events mentioned above and below are the key takeaways from the conference call.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

RBI has appointed Mr. Yogesh K Dayal, “Chief General Manager, RBI”, as an additional director on the Board of RBL Bank Limited w.e.f. 24th December, 2021 till December 23, 2023 or till further orders, whichever is earlier. In another surprise move, the current MD &amp; CEO of the bank, Mr. Vishwavir Ahuja went on leave with immediate effect. The Board has appointed Mr. Rajeev Ahuja (currently the Executive Director) as interim MD &amp; CEO of the Bank with immediate effect, subject to regulatory and other approvals.  Management hosted a conference call today to discuss the events mentioned above and below are the key takeaways from the conference call.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

RBL Bank Ltd: Shifting Stock to 'Under Review'

India

RBL Bank Limited operates as a commercial bank. The Company offers banking products and services such as savings accounts, fixed deposits, personal and business loans, debit and credit cards, insurance, investment management, and mobile banking. RBL Bank serves customers throughout India.

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RBL Bank Ltd (RBK IN)

NIFTY Bank Index Rebalance: BOB to Replace RBL Bank

Bank of Baroda replaces RBL Bank in the NSEBANK at the close on 30 March. Passive trackers will need to buy over 2 days ADV on BOB while selling...

Brian Freitas

Sintex Loan Fiasco: Is RBL’s Acting CEO Fit to Be a Banker, Let Alone Run a Bank?

It is unlikely, and at any rate undesirable, that a top banker who clears a loan to a company having 10.5:1 gearing should be rewarded with the...

Hemindra Hazari

NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank

With the review period complete, we see BOB IN replacing RBL IN at the March rebalance. Passive trackers need to buy 11 days of delivery volume on...

Brian Freitas

RBL Bank Ltd: On the Recovery Path; Retain ‘BUY

RBL Bank’s Q3FY22 results are broadly better than our estimates; however, aggressive customer acquisition in the credit card segment led to...

Edelweiss

RBL Bank Ltd: Shifting Stock to 'Under Review'

We are putting RBL Bank “UNDER REVIEW” and will continue to closely monitor any developments that pan out on both asset quality and the CEO...

Edelweiss

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