RBL Bank quells reports over financial health and stability, stock gains 4 pc
Mumbai (Maharashtra) [India], Mar 17 (ANI): Private sector lender RBL Bank said on Tuesday it is financially strong, well-capitalised, profitable and a growing entity with a strong governance set-up.
ANI
Mar 17, 2020 12:25 IST
Mumbai (Maharashtra) [India], Mar 17 (ANI): Private sector lender RBL Bank said on Tuesday it is financially strong, well-capitalised, profitable and a growing entity with a strong governance set-up.
"Market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts," it said in a statement similar to the one issued a week ago.
RBL Bank said it is well capitalised with a capital adequacy ratio of 16.08 per cent with tier one at 15.02 per cent, which is significantly higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent respectively.
"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. This is after taking into consideration our exposures to the south-based client," it said.
While there has been no material impact on retail deposits, there have been some withdrawals from institutional depositors and a couple of state government organisations constituting about 3 per cent of its total deposits in the last one week.
However, said RBL, the issue is being addressed by us on a one-on-one basis with state governments and also at the industry levels by Reserve Bank of India (RBI).
"In spite of this, we remain highly liquid with significant retail deposits, institutional lines, refinance and surplus liquid assets. All our business segments are doing well, we continue to expand presence across newer geographies by adding branches and are also hiring more people than previously planned," it said.
The management team of the Bank is fully committed to develop and grow the institution to the next level over the next several years. "RBL Bank is committed to all its stakeholders and we would urge all our stakeholders to not believe unsubstantiated information and mischievous rumours."
At 12:15 pm, RBL's stock was trading 4.14 per cent higher at Rs 169.65.
(ANI)
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