RBL Bank stocks sizzle after it clarifies on negative reports

Source : Sify
Author : Finance Desk
Last Updated: Wed, Mar 11th, 2020, 13:42:20hrs
RBL Bank stocks sizzle after it clarifies on negative reports

Mumbai: Counters of Ratnakar Bank Limited witnessed volume trading and saw the stock price zoom in the first half of the trading session on Wednesday.  

At 11 am, RBL's stock was trading 10.2 per cent higher at Rs 229. The stock's 52 week high and low are 716.55 and 199.05 respectively.  

The private sector lender in a note clarified that it was fundamentally strong. This was to quash speculations over financial health and stability of the institution accentuated by reports in social media.  

The bank chose to emphasize on four major points:  

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 note added, "RBL Bank is financially strong, well capitalised, profitable and a growing entity with a strong governance set up."

The private sector lender currently services over 78 lakh customers through a network of 1,616 offices spread across 28 states and union territories.