Asset quality woes may spook RBL Bank's capital raising plans

RBL Bank’s near-10 per cent fall on Wednesday, in reaction to the private lender’s wobbly asset quality, coupled with its 60 per cent value erosion since July, highlights the rising scepticism among investors over the stock.  Following the June quarter results, not many were happy with the bank’s admission that the gross non-performing assets (NPA) ratio could touch 2.5 per cent in FY20, and that the lender had identified a pool of stressed loan assets (commonly referred to as watch-list) worth Rs 1,000 crore. However, the September quarter (Q2) commentary fr.....

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