RBL Bank clarifies on rumours regarding asset quality

There has been considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, Mr. R. S. Kumar, with asset quality challenges for the Bank in the near future. We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature.

For the year ended March 31, 2022, the Bank's gross and net NPA were 4.4% and 1.3%, with a provision coverage ratio of 70.4%, with no reportable divergence. As the Bank has been highlighting in its past commentaries, the Bank is well provided and does not foresee any asset quality challenges.

Also as stated earlier, given the strong provision coverage, lower delinquency trends, and strong recovery visibility from the GNPA book, credit costs for FY 23 are expected to be materially lower than FY 22.

The Bank also remains well capitalised and post its recent Tier 2 capital raise on May 13, 2022, from United States International Development Finance Corporation, America's development finance institution, the capital adequacy ratio of the Bank has increased to approx 17.8%.

Shares of RBL Bank Limited was last trading in BSE at Rs. 87.90 as compared to the previous close of Rs. 113.35. The total number of shares traded during the day was 6840575 in over 29680 trades.

The stock hit an intraday high of Rs. 102.05 and intraday low of 86.25. The net turnover during the day was Rs. 637838520.00.

Source : Equity Bulls

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RBLBank INE976G01028 Clarification Rumours AssetQuality