RBL Bank Says Exposure To Indiabulls Group ‘Very Tiny’
RBL Bank’s shares tumbled to their lowest since listing, tracking other banking stocks.
RBL Bank Ltd. on Tuesday said its exposure to the Indiabulls Group is “very tiny”, as the private lender tried to allay fears after its stock tumbled to its lowest since listing.
The bank does not have any sectoral issues in its portfolio, Rajeev Ahuja, executive director at RBL Bank, told BloombergQuint in an interaction, adding that the issues related to specific companies are not related to any larger sectoral issues.
“We also have a lot of cash lying with us.” There has been no material change in the bank in the last month or two, he added.
Ahuja dismissed rumours about a probe by the Serious Fraud Investigation Office, saying that there has been no conversation with them and that the speculation is “totally out of place”.
Watch | Rajeev Ahuja On RBL Bank’s Exposure To Indiabulls Group
India’s banking stocks, led by Yes Bank Ltd., fell on concerns about their exposure to non-bank lender Indiabulls Housing Finance Ltd., which is facing allegations of misappropriation along with The Lakshmi Vilas Bank Ltd. The two firms are awaiting approval to merge. The probes stem from troubled balance sheets after funding dried up following the crisis at IL&FS Group a year ago.
RBL Bank shares ended the day 8.71 percent lower at Rs 300.10 after falling as much as 22.27 percent to Rs 255.6 intraday. The benchmark BSE S&P Sensex closed 0.94 lower at 38,305.41 points.
“These movements in the stock price seem untoward or misplaced and frankly we don't see any reason. We are a healthy bank and we are growing, we are profitable and we have adequate capital,” he said.