RBL Bank shares rise after board clears raising of Rs 3,000 crore

Shares of RBL Bank gained over 5 per cent in a highly volatile market today after its board cleared raising of up to Rs 3,000 crore to fund the lender's business growth. The fund raising will be subject to the approval of the shareholders, the bank said.

Buoyed by the development, RBL Bank stock rose 5.19 per cent to Rs 103.35 against the previous close of Rs 98.25 on BSE. The banking stock has gained after two days of consecutive fall.

The stock hit a 52-week low of Rs 74.15 on June 20, 2022 and a 52-week high of Rs 221.20 on November 10, 2021.

In a year, the share has lost 35 per cent and fallen 19.17 per cent since the beginning of this year. Total 16.23 lakh shares changed hands amounting to turnover of Rs 16.49 crore. Market cap of the lender stood at Rs 6,192.99 crore on BSE.

ALSO READ: RBL Bank back in black as lender posts Rs 201 cr profit in Q1

"Issue of debt securities on private placement basis, from time to time, upto an amount of Rs 3,000 crore, subject to the approval of the Members of the Bank at the ensuing Annual General Meeting of the Bank, pursuant to Section 42 and other applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations," said RBL Bank.  

The board has also cleared issuing of 1.75 crore additional equity stock options exercisable into equivalent number of equity shares fully paid up of Rs 10 each, in addition to residual/remaining options which remain ungranted under ESOP 2018.

The bank's board also cleared the appointment of two independent directors -- Gopal Jain, Managing Partner and Founder Gaja Capital, and Sivakumar Gopalan, Faculty of the Department of Computer Science and Engineering, IIT Bombay.

The private sector lender posted Rs 201 crore profit for the quarter ended June 30, 2022 against a net loss of Rs 459 crore in the year-ago period.

ALSO READ: Can New MD & CEO R. Subramaniakumar Turn Around RBL Bank's Fortunes?

Net interest income (NII) climbed 6 per cent to Rs 1027.1 crore in Q1 against Rs 969.5 crore in the corresponding period last fiscal. Net interest margin (NIM) stood at 4.36 per cent.

Interest earned rose over 3 per cent to Rs 2,089 crore in Q1FY23 against Rs 2,026 crore in Q1FY22. June quarter provisions and contingencies fell to Rs 253 crore against Rs 1,384 crore in the same quarter last fiscal.