We are financially strong, well-capitalised and profitable, says RBL Bank

Dispelling rumours about its financial health after the YES Bank crisis came to light, RBL Bank on Tuesday said it was financially strong, well-capitalised, profitable and a growing entity with a strong governance set-up.

The lender said market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts.

Last week also, the bank said it was "well capitalised" and there is no adverse change in its asset quality. The statement came in the wake of the YES Bank crisis, following which stock prices of various banks went down sharply.

"In the wake of the significantly higher level of market rumours and speculation around RBL Bank stock, we would like to reiterate what we said on March 11, 2020 and wish to reemphasize that RBL Bank is financially strong, well-capitalized, profitable, and a growing entity with a strong governance set-up," the bank said in a statement on Tuesday.

RBL Bank is well capitalized with a capital adequacy ratio of 16.08 per cent with tier-1 at 15.02 per cent, which is significantly higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent, respectively, it said.

"There has been no material adverse change in the asset quality since we announced our Q3 financial results on Jan 22, 2020 and our guidance remains consistent," the statement said.

The bank also urged all its stakeholders to not believe in unsubstantiated information and mischievous rumours.

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