In last week’s carnage, RBL Bank is one of the banks which was hit badly. It has slipped to a low of Rs.199.05, mush below its IPO price of Rs.225. on Friday, it had closed at Rs.207.80 and today, it opened lower atRs.204 and started on its almost routine southward journey, hitting an intraday low at Rs.201.40.
And then came the company’s update, informing the exchange that it is financially sound and investors did not need to panic.
RBL, today morning said that its management wished to address the prevailing concerns around the bank which is based on misinformation, and warrants clarification. It said:
· RBL Bank Is Well Capitalized:- The Bank remains adequately capitalized with a capital adequacy ratio of 16.08% with Tier-1 at 15.02% (Significantly higher than the prescribed regulatory requirement at 11.5% and 9.5% respectively).
· No Adverse Change In Asset Quality:- There has been no material adverse change in the asset quality since we announced our Q3 financial results on Jan 22, 2020 and our guidance remains consistent.
· Healthy Liquidity:- Our Liquidity Coverage Ratio (LCR) is at 145% of statutory requirements as at the end of last week.
· Growth is on Track: - 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 Bank continues to attract additional deposits from retail, corporates and institutional segments.
· Management Remains Firmly Committed:- The management team of RBL Bank is fully committed to develop the institution to the next level and our growth journey remains intact.
The Bank said, “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.”
Following this update, the stock price surged to upwards to Rs.238.95, less than Rs.10 away from its 20% UC of the day at Rs.249.35.