RBL Bank Shares Plunge 7% After Q3 Results Miss Expectations

• RBL Bank shares dropped over 7% on Monday, January 19, marking its biggest single-day fall since June 2024.
• The decline follows the bank's Q3 results, which revealed a sharp 40 basis point increase in credit costs due to higher write-offs in its credit card portfolio.
• Net profit of ₹214 crore missed consensus expectations of over ₹260 crore, primarily due to a 28% rise in provisions to ₹639 crore.
• Management warned of continued challenges in the credit card portfolio and potential slippages over the next two quarters.
• Despite the fall, CLSA maintained a 'hold' rating with a ₹310 target, while 13 out of 22 analysts still recommend 'buy'.

Why It Matters: RBL Bank's share price fell sharply due to higher credit costs, increased provisions, and missed profit expectations.