Shares of RBL Bank climbed 11 per cent in Thursday's trade after two consecutive days of decline.
private lender has seen a nearly seven-fold jump in profits for the September quarter
While some price targets on the stock suggest a possible rally, analysts believe that there is no new trigger for the stock.
After RBL Bank's Q2 results, ICICI Securities raised its price target on the stock from Rs 106 to Rs 125 but downgraded the stock from 'Add' to 'Hold'.
ICICI Securities said September was another stable quarter for the bank, but it lacked a clear trigger for return on assets (ROA).
On Thursday, the stock rose 11 percent to a high of Rs 137.70 on the BSE. Analysts said credit growth picked up for RBL Bank (12 per cent per annum),
but deposits growth remained muted at 5 per cent per annum. We believe this will demand continued investment in disbursement, delivering higher medium term OPEX ratios.
We reduce our FY23E/FY24E earnings forecast by 6 per cent to factor in higher OPEX," HDFC Institutional Equity said