RBL Bank advanced 2.45% to Rs 144.35 on signing an agreement with Bajaj Finance for the extension of the partnership of co-branded credit cards for a period of five years to December 2026.
Shares of Bajaj Finance added 0.71% to Rs 6,937.95 on BSE. The scrip hovered in the range of Rs 6,916.05 to Rs 6,973.45 during intraday trade.
Meanwhile, the National Stock Exchange has put four stocks under the ban for trade in the futures & options segment on 28 December 2021. RBL Bank is the latest stock to come under the F&O ban list of NSE. These securities have crossed 95 percent of the market-wide position limit.
Additionally, RBL Bank's board on Saturday, 25 December 2021 accepted the request of Vishwavir Ahuja to proceed on medical leave and appointed Rajeev Ahuja (existing executive director of the bank) as the interim managing director (MD) and chief executive officer (CEO) of the bank, subject to regulatory and other approvals.
Further, the Reserve Bank of India (RBI) appointed Yogesh Dayal as an additional director on the board of RBL Bank for a period of two years till 23 December 2023 or till further orders, whichever is earlier.
Mr Dayal is a chief general manager of RBI. He is in charge of the RBI's Department of Communication. Dayal is not related to any of the directors/key managerial personnel of RBL Bank.
"The Bank and the current management team led by Mr Rajeev Ahuja has full support from RBI," RBL Bank said in a statement. It added that the latest developments are not on account of any concern on advances, asset quality and deposits level of the bank.
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RBL Bank said that its capital adequacy was 16.3% and will be in a similar range this quarter. Liquidity Coverage ratios have been well above regulatory requirements - it was 155% for the September quarter.
On asset quality, the bank's slippages peaked in Q2 and will be improving this quarter and next as guided previously. The NPA position of the bank will also be on an improving trend. Traction on advances is picking up while the bank continues to keep improving granularity on both advances and deposits. The bank said it remains on track to its guidance on earnings for the rest of the year with improved traction FY23 onwards.
Separately, the media reported that billionaire investor Rakesh Jhunhunwala and D-Mart founder RK Damani have approached RBI with the request to buy 10% stake in RBL Bank. The move by Jhunjhunwala and Damani was made prior to the RBI action against the bank, reports added.
The bank's net profit declined 78.63% to Rs 30.80 crore on 2.10% rise in total income to Rs 2,567.65 crore in Q2 FY22 over Q2 FY21.
RBL Bank is a private sector bank. It offers specialized services under five business verticals namely: corporate & institutional banking, commercial banking, branch & business banking, retail assets and treasury and financial markets operations. It currently services over 9.97 million customers through a network of 445 branches, 1,435 business correspondent branches (of which 271 banking outlets) and 386 ATMs spread across 28 Indian states and Union Territories.
The scrip fell 20.82% in the past two trading sessions to Rs 140.90 on 27 December 2021 from Rs 177.95 on 23 December 2021.
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