RBL Bank says 'financially strong, well capitalised and no adverse change in asset quality'

In the aftermath of Yes Bank crisis, Private sector lender RBL Bank on Wednesday said it is 'well capitalised' and there is no adverse change in its asset quality

Press Trust of India March 11, 2020 12:44:26 IST
RBL Bank says 'financially strong, well capitalised and no adverse change in asset quality'
  • The statement comes in the wake of the Yes Bank crisis, following which stock prices of various banks went sharply down

  • Shares of RBL Bank were trading at Rs 230.25, higher by 10.80 percent over its previous close in early trade on BSE

  • The stock had witnessed significant downtrend and had slumped over 30 percent in the previous two trading sessions

New Delhi: In the aftermath of Yes Bank crisis, Private sector lender RBL Bank on Wednesday said it is "well capitalised" and there is no adverse change in its asset quality.

The statement comes in the wake of the Yes Bank crisis, following which stock prices of various banks went sharply down.

"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.

RBL Bank says financially strong well capitalised and no adverse change in asset quality

Representational image. Reuters.

The lender further said that: "We wish to re-emphasize 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".

The 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 22 January, 2020 and our guidance remains consistent," the bank said.

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

Shares of RBL Bank were trading at Rs 230.25, higher by 10.80 percent over its previous close in early trade on BSE.

The stock had witnessed significant downtrend and had slumped over 30 percent in the previous two trading sessions.

Updated Date:

also read

How much penalty is applicable if you break your fixed deposits before maturity? Find out here
Business

How much penalty is applicable if you break your fixed deposits before maturity? Find out here

While different banks have different penalty rates, the fee typically ranges between 0.5 and 1 percent of the interest

Federal Bank holds 21% of inward remittance market: Report
Business

Federal Bank holds 21% of inward remittance market: Report

According to data by the Reserve Bank of India, private banks account for over half the flow of remittances, at 52.8 percent. 

RBI cancels licence of Solapur-based Laxmi Co-operative Bank
Business

RBI cancels licence of Solapur-based Laxmi Co-operative Bank

Consequent to the cancellation of its licence, the bank is prohibited from conducting the business of banking' which includes, among other things, acceptance of deposits and repayment of deposits