RBL Bank board approves preferential issue of shares

The board of the private lender approved issuing 8.84 crore equity shares on preferential basis at Rs 177 each, aggregating to Rs 1566 crore.

The bank will issue 5.64 crore shares to Maple II B.V. (affiliated with Baring PE Asia), 1.86 crore shares to ICICI Prudential Life, 48.90 lakh shares to CDC Group, 4.23 lakh shares to Gaja Trustee Company and 80.50 lakh shares to Gaja Capital Fund II.

Consequent to the preferential issue, the Capital Adequacy Ratio of the bank will rise to 18.6% with CET-1 ratio rising to 17.4%. The announcement was made during market hours today.

The bank will hold an extraordinary general meeting of its shareholding on Saturday, 12 September 2020, to seek their approval for the proposed preferential issue.

RBL Bank is a private sector bank. It offers specialized services under six business verticals namely: corporate & institutional banking, commercial banking, branch & business banking, retail assets, development banking and financial inclusion, treasury and financial markets operations. The bank has a network of 392 branches, 1,221 business correspondent branches (of which 263 banking outlets) and 389 ATMs spread across 28 Indian states and Union Territories.

The private bank's profit fell 47.1% to Rs 141.22 crore on 2.6% rise in total income to Rs 2568.32 crore in Q1 FY21 over Q1 FY20. Net Interest Margin stood at 4.85% as on 30 June 2020 as against 4.31% as on 30 June 2019.

The scrip fell 1.06% to Rs 182.80 on the BSE. It traded in the range of 178.65 and 190 so far during the day.

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