RBL Bank raises Rs 676 crore via preferential issue of shares

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Published: January 1, 2020 1:15:53 AM

After the preferential issue and qualified institutional placement earlier in December, the total capital raised by the lender stood at Rs 2,701 crore.

The bank had seen a significant deterioration in its asset quality in Q2FY20, with its gross NPA rising to 2.6% from 1.4%.

RBL Bank on Tuesday announced it had raised Rs 675.8 crore via preferential allotment of 1.98 crore equity shares at Rs 340.7 apiece. After the preferential issue and qualified institutional placement earlier in December, the total capital raised by the lender stood at Rs 2,701 crore.

The bank’s capital adequacy ratio stood at 16.31%, while its core equity Tier-I ratio was at 15.29%. At the end of the September quarter, the CAR had come in at 12.3%, down from 13.7% a year ago. The preferential allotment of shares was made to East Bridge Capital Master Fund I, FEG Mauritius FPI, Ishana Capital Master Fund and WF Asian Reconnaissance Fund, the bank said.

Vishwavir Ahuja, MD and CEO of RBL Bank, said: “The completion of the fund-raise through the preferential allotment further enhances the long-term capital resource for the bank. This equity capital infusion, together with the QIP earlier this month, significantly strengthens our capital adequacy ratio and enables us to continue investing in the growth of our businesses.”

The bank had seen a significant deterioration in its asset quality in Q2FY20, with its gross NPA rising to 2.6% from 1.4%.

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