RBL Bank rubbishes market rumours about its financial health

MUMBAI: Private lender RBL bank on Tuesday again reiterated that that it was financially strong, well-capitalized, profitable, and a growing entity with a strong governance set-up. Market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts, it said.

“RBL Bank is committed to all its stakeholders and we would urge all our stakeholders to not believe unsubstantiated information and mischievous rumours,” the bank said in a press statement. “ All our business segments are doing well, we continue to expand presence across newer geographies by adding branches and are also hiring more people than previously planned. The management team of the Bank is fully committed to develop and grow the institution to the next level over the next several years.”

The bank has a capital adequacy ratio of 16.08% with Tier-1 at 15.02% which is higher than the prescribed regulatory requirement at 11.5% and 9.5% respectively. It claimed that there has been no material adverse change in the asset quality since it announced the December quarter earnings.

RBL also said that there had been no significant deposit withdrawals from the bank.

“While there has been no material impact on our retail deposits, there have been some withdrawals from institutional depositors and a couple of state government organizations constituting about 3% of our total deposits in the last one week,” it said. “However this issue is being addressed by us on a one-on-one basis with the State Governments and also at the Industry levels by RBI. In spite of this, we remain highly liquid with significant retail deposits, institutional lines, refinance, and surplus liquid assets.”

Source Article

Lois C. Ferrara

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