RBL Bank shares in news on report lender sells Rs 800 cr credit card loans to Kotak Mahindra Bank

Shares of RBL Bank Ltd would be in news in Wednesday's trade amid a media report that quoting sources suggested the private sector lender sold about Rs 800 crore of its credit card portfolio at a steep discount to Kotak Mahindra Bank. This, as per the ET report, was done in a deal that is reflective of the mounting stress in the unsecured loans.

RBL Bank, the report said, was looking to clean up its books after a change of guard at the private lender. This is after the bank lost more than half in its market capitalisation over the past five years. The credit card repayment delays, as per the report, accounted for one-fifth of RBL Bank's total gross non-performing assets (NPAs).

The RBI recently granted a one-year extension to Bajaj Finance Ltd - RBL Bank Ltd credit card partnership against an anticipation of longer period. RBL Bank shares are up 51 per cent in the last one year. They gained 16 per cent in the last one month.

Also read: RBL Bank shares jumped 6%, Federal Bank 2% today. Here's why

Earlier this week, the banking stock was in news after the bank in a filing to stock exchanges said the Reserve Bank of India gave approval to ICICI Prudential Asset Management Company Ltd and ICICI Prudential Life Insurance Co acquire to acquire major shareholding in the bank within a period of one year, by December 26, 2024. The RBI asked the two ICICI entities to ensure that the aggregate holding in the RBL bank does not exceed 9.95 per cent of the paid-up share capital or voting rights of the bank at all times.

"Further in the event, if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank," RBL Bank said in a filing.