RBL Bank slips after chief Vishwavir Ahuja sells shares worth Rs 38.52 cr

RBL Bank fell 1.92% to Rs 206.55 after Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of the bank, sold 18.92 lakh shares, or 0.37% stake, in the bank on 27th and 28th of August 2020 for about Rs 38.52 crore.

Ahuja sold the shares to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise & purchase vested ESOPs (and pay associated tax), as well as to take care of some pressing family commitments. The sale represents approximately 18% of his/family's total holdings and Ahuja continues to retain 80.10 lakh shares (approx 1.6% holding) of RBL bank post the sale. The disclosure was made after market hours on Friday, 28 August 2020. As of 30 June 2020, Vishwavir Ahuja held 1.95% stake in RBL Bank.

"While I have sold a small part of my shareholding in the bank, I strongly believe that RBL Bank has a robust balance sheet and business franchise, is well capitalized & fortified to deal with the economic impact of the prevailing pandemic situation confronting the nation, and extremely well positioned to exploit market opportunities in the short as well as long term. It has strong growth prospects over the next several years especially in areas which we have chosen to scale-up," Ahuja said.

The private bank's profit fell 47.1% to Rs 141.22 crore on 2.6% rise in total income to Rs 2,568.32 crore in Q1 FY21 over Q1 FY20. Net Interest Margin (NIM) stood at 4.85% as on 30 June 2020 as against 4.31% as on 30 June 2019.

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.

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