RBL Bank quashes speculation over viability, stock up by 10 pc

Private sector lender RBL Bank said on Wednesday it is a fundamentally strong institution and speculation over financial health and stability of the institution especially in social media seem to be misplaced, motivated and not based on facts.

The bank remains adequately capitalised with a capital adequacy ratio of 16.08 per cent with tier one at 15.02 per cent. This is significantly higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent respectively.

"There has been no material adverse change in the asset quality since we announced our Q3 financial results on January 22 and our guidance remains consistent," it said in a statement.

"Our liquidity coverage ratio (LCR) is at 145 per cent of statutory requirements as at the end of last week."

RBL said all its business segments are doing well and it continues to expand presence across newer geographies by adding branches and are also hiring more people as previously planned.

The bank continues to attract additional deposits from retail, corporates and institutional segments.

"The management team of RBL Bank is fully committed to develop the institution to the next level and our growth journey remains intact," it said.

"RBL Bank is financially strong, well capitalised, profitable and a growing entity with a strong governance set up," it added.

The private sector lender currently services over 78 lakh customers through a network of 1,616 offices spread across 28 states and union territories.

At 11 am, RBL's stock was trading 10.2 per cent higher at Rs 229.