RBL Bank raises ₹2,025 crore via QIP

Private sector lender RBL Bank has raised ₹2,025 crore through a qualified institutional placement (QIP) to boost its capital position from a host of domestic and foreign institutional investors.

The fund raising will increase the bank’s total capital adequacy ratio to 15.3% and core equity tier I ratio to 14.3%.

The capital adequacy ratio steadily fell from 15.95% in September 2017 to 13.12% in September 2018, and further to 11.88% in September 2019. The bank allocated 5.77 crore equity shares at a price of ₹351 per share.

The issue saw strong demand from domestic as well as foreign qualified institutional buyers. “The overall allocation to domestic investors, including mutual funds and insurance companies, is approximately 60%, with the balance allocated to foreign institutional investors in Asia and Europe,” the bank said. Bajaj Finance Ltd., the bank’s credit card partner, also participated in the QIP.

“This capital infusion significantly enhances our capital adequacy, and positions us well to capitalise on the various growth opportunities available to us, especially as economic growth returns to normal,” said Vishwavir Ahuja, MD and CEO, RBL Bank.

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Printable version | May 6, 2021 3:53:58 PM |

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