RBL Bank says it is financially strong, well-capitalized

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

 Representational image (Twitter)

New Delhi: In the aftermath of the Yes Bank crisis, Private sector lender RBL Bank on Wednesday said it is “well-capitalized” 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.

The lender further said that “We wish to re-emphasize that RBL Bank is a fundamentally strong institution.  Rumors 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 capitalized, 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 added 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 a significant downtrend and had slumped over 30 percent in the previous two trading sessions.

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