RBL Bank Says It Is Financially Strong, Well Capitalised
In the aftermath of Yes Bank Ltd. crisis, Private sector lender RBL Bank Ltd. 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 fell sharply.
"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.
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.RBL Bank Statement
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 January 22, 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 rallied as much as 14.89 percent to Rs 239.20 apiece, before paring gains. The stock had witnessed significant downtrend and had slumped over 30 percent in the previous two trading sessions.