RBL Bank to raise about Rs 500 cr from IPO in Q4 FY15

Written by PTI | New Delhi | Updated: May 9 2014, 02:43am hrs
RBL Bank, formerly known as Ratnakar Bank, today said it plans to raise a minimum Rs 500 crore through an initial public offer in the fourth quarter of current financial year.

"We will start the basic process for IPO in the next 2-3 months ... we hope to hit the market in the early part of the next year," RBL Bank Managing Director Vishwavir Ahuja told PTI.

"The quantum of offer is not finalised yet but we plan to raise minimum Rs 500 crore or 10 per cent of stake dilution," he said.

The bank has build scale and size so that bank get right valuation for its shares, he added.

The bank currently services more than 5 lakh customers and has a total business size of over Rs 21,000 crore. It got capital support of about Rs 1,500 crore from global and domestic investors in the last three years.

Last month, the bank raised Rs 328 crore from a group of global investors, including CDC Group and Asia Capital and Advisors.

Existing investors, including International Finance Corporation (IFC) and Gaja Capital, also participated in the capital infusion.

With this capital infusion, the total Tier I capital rose to Rs 2,000 crore.

Meanwhile, the bank launched co-branded cricket credit card tailored to offer lifestyle and sporting privileges to growing community of cricket fans.

The launch of a cricket credit presents a platform for the growing fans of the game and the club to engage with their team, he said.

Powered with host of features, the annual fee for this card would be Rs 1,000.

Currently, the bank has 1 lakh credit card customers and aims to increase the number to 5 lakh in the next 4-5 years.

Last year, the bank acquired some assets of Royal Bank of Scotland Group (RBS), including the UK bank's mortgages, credit card and loan-against-property portfolios.