RBL Bank says it is well capitalised; shares rally 9%

NEW DELHI: Shares of RBL Bank advanced over 9 per cent in Wednesday’s trade after the private sector lender said it is “well capitalised” and there is no adverse change in its asset quality.

“The management of RBL Bank wishes to address the prevailing concerns around the bank, which is based on misinformation, and warrants clarification,” it said in a statement.

The bank further said: “We wish to re-emphasise that RBL Bank is a fundamentally strong institution. Rumours around financial health and stability of the institution, especially in social media seem to be misplaced, motivated and not based on facts.”

RBL Bank said it is well capitalised, has healthy liquidity, growth is on track and management remains firmly committed.

“There has been no material adverse change in the asset quality since we announced our Q3 financial results on January 22, and our guidance remains consistent," the bank added.

The bank further said that it has a capital adequacy ratio of 16.08 per cent with Tier-1 at 15.02 per cent, significantly higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent, respectively.

“All our business segments are doing well, we continue to expand presence across newer geographies by adding branches and are also hiring more people as previously planned," the statement said adding that the bank continues to attract additional deposits from retail, corporates and institutional segments.

The shares of the company closed 9.07 per cent higher at Rs226.65 on BSE.