RBL Bank jumped 10.06% to Rs 228.70 after the bank said it is financially strong, well-capitalized, profitable and a growing entity with a strong governance set up.
The management of RBL Bank on Wednesday (11 March 2020) addressed the prevailing concerns around the bank which is based on misinformation, and warrants clarification.The bank said it 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).
It added that there has been no material adverse change in the asset quality since the bank announced its Q3 financial results on 22 January 2020 and its guidance remains consistent. Its Liquidity Coverage Ratio (LCR) is at 145% of statutory requirements as at the end of last week.
The bank clarified that all its business segments are doing well, it continues to expand presence across newer geographies by adding branches and is also hiring more people as previously planned. The bank said it continues to attract additional deposits from retail, corporates and institutional segments.
The management team of RBL Bank is fully committed to develop the institution to the next level and its growth journey remains intact.
The management re-emphasized 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.
Shares of RBL Bank tanked 31.07% in the past two trading sessions to settle at Rs 207.80 on Monday, 9 March 2020, from its close of Rs 301.50 on 5 March 2020.
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RBL Bank's net profit slumped 68.9% to Rs 69.95 crore on a 31.4% surge in total income to Rs 2,644.30 crore in Q3 December 2019 over Q3 December 2018.
RBL Bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, agriculture finance and financial inclusion, treasury operations and other banking related activities.
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