RBL Bank to raise Rs 1,680 cr from institutional investors

HDFC Life, ICICI Lombard, ABG Capital, CDC Group, Global IVY Ventures among key investors

RBL Bank on Friday got approval from its board to raise Rs 1,680 crore as equity, by issuing 32.6 million shares on a preferential basis to institutional investors. The money will be used to augment its tier-I capital, the core capital of a bank, to support organic growth and capitalise on inorganic opportunities.  

ABG Capital, CDC Group, Global IVY Ventures, HDFC Standard Life Insurance Company, ICICI Lombard general insurance company, and LTR Focus Fund are among the key investors.

The lender’s board has approved the issuance of shares at a face value of Rs 10 at Rs 515 each. The bank had earlier raised Rs 832 crore in 2016, Rs 488 crore in 2015 and Rs 376 crore in 2013. Its tier-I capital increased to Rs 4,321 crore in FY17 from Rs 2,972 crore in FY16, whereas tier-II capital increased to Rs 867 crore in FY17, as compared to Rs 491 crore in FY16.

The lender saw a profit of Rs 446 crore in FY17, a 55 per cent increase from Rs  292 crore in FY16. Its net worth currently stands at Rs 4,336 crore. The capital adequacy ratio of the bank was at 13.7 per cent in FY17, as opposed to 12.9 in FY16.

Its net advances rose 38.7 per cent to Rs 29,449 crore at the end of March 2017, from Rs 21,229 crore on March 31, 2016. The deposits were up 42 per cent to Rs 34,588 crore in FY17, from Rs 24,349 crore at the end of March 2016.