RBL Bank hits 2-month high; surges 60% from all-time lows

Topics Buzzing stocks | RBL Bank

RBL bank
Shares of RBL Bank hit a two-month high of Rs 369, up 6 per cent in intra-day trade, on the BSE on Wednesday on report that the private lender is looking to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) offering. The stock was trading at its highest level since September 27, 2019.

RBL Bank, during its Annual General Meeting held on July 9, 2019, passed a resolution to raise equity capital. The Bank further reiterated the possibility of raising equity capital during the analysts' earnings post the Q2FY20 results.

In the past eight trading days, the stock has rallied 16 per cent after business channel reported that the bank was in talks with Bajaj Holdings & Investment, Chrys Capital, and Blackstone for a proposed share sale.

The bank, in a filing, later clarified to the exchanges that no such event had occurred which required the bank to make any announcement. READ FILING HERE

With today’s gain, the market price of RBL Bank has surged 60 per cent from its all-time low of Rs 231 touched on October 23, 2019. The bank had posted its worst quarterly show for the July-September quarter (Q2FY20) since listing on August 31, 2016.

"Given the difficult credit environment, the bank has faced challenges in a few corporate accounts. As matter of prudence, the bank has taken higher than required provisions on these accounts which have impacted bank’s bottom-line," the management said while announcing Q2 results on October 22.

Meanwhile, on Tuesday, RBL Bank’s managing director and chief executive Vishwavir Ahuja told news agency PTI that a bulk of the pain has been recognised by providing for it in the September quarter, adding there will be a lower provision in the December quarter and a small number in the fourth quarter, if need be.

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