In the past one month, the share price of RBL Bank
has tanked 55 per cent despite management clarification last month that the bank is a well-capitalised and profitable entity. In comparison, the S&P BSE Sensex was down 24 per cent during the same period.
“Market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts,” RBL Bank said in a statement on March 17. The lender had made second such statement in the last month.
“There has been no material adverse change in the asset quality since announcement of Q3 financial results on Jan 22, 2020 and guidance remains consistent. While there has been no material impact on bank’s retail deposits, there have been some withdrawals from institutional depositors and a couple of state government organizations constituting about 3 per cent of the bank’s total deposits in the last one week,” it added.
Analysts at JP Morgan have ‘underweight’ rating on RBL Bank on relatively high share of non-investment grade book, an unseasoned unsecured book and nascent deposit franchise. However, the stock trades well below the brokerage March 21 price target of Rs 170 per share.
At 01:52 pm, RBL Bank was trading 4 per cent lower at Rs 130, against 4.4 per cent decline in the S&P BSE Sensex. A combined 12.8 million shares changed hands on the counter on the NSE and BSE so far.