The board of private sector lender RBL Bank has decided to raise ₹826 crore equity capital from five investors to boost its capital base.
The bank will issue 24.24 million shares to these investors at ₹340.7 a piece, the bank said in a communication in the stock exchange.
Post the allotment, WF Asian Reconnaissance Fund Limited will hold 1.45% stake in the bank, lshana Capital Master Fund will have 1.39%, FEG Mauritius FPI Limited 0.56%, East Bridge Capital Master Fund I Ltd. 0.97% and Bajaj Finance Limited will have 0.97%.
RBL stock ended at ₹373.80 on Friday, 1.9% higher than its previous close. The capital infusion will help the lender to improve its capital adequacy ratio which steadily fell from 15.95% in September 2017 to 13.12% in September 2018 and further to 11.88% in September 2019.
Asset quality
The bank’s asset quality also worsened during the last one year with gross non-performing assets, as a percentage of gross advances, going up from 1.4% in September 2018 to 2.6% in September 2019.
In the first half of the current financial year, the private sector lender’s net profit fell 19% to ₹321.4 crore from ₹394.6 crore during the same period of the previous year.
