RBL Bank to raise ₹3,000 cr via debt securities; reduced its stake in Kilburn to 1.02%

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RBL Bank’s board on Monday approved a fundraising of up to 3,000 crores through the issuance of private placement debt securities. In a further development, the company has further disposed of additional shares in Kilburn Engineering Ltd. (“Kilburn”). The company’s stake in Kilburn is now reduced to 1.02%. On BSE, RBL Bank shares were under selling pressure and closed in the red.

In its regulatory filing, RBL Bank said the board had approved “the issuance of debt securities on a private placement basis, from time to time, up to an amount of 3,000 crore, subject to the approval of the Members of the Bank at the ensuing Annual General Meeting of the Bank.”

Additionally, in a separate filing, RBL Bank disclosed that it had additionally sold 3,000,000 shares representing 0.87% of Kilburn Engineering’s paid-up share capital on August 22.

The bank sold shares in Kilburn from May 17, 2022 to August 22, 2022. In Kilburn, at the end of August 19, 2022, RBL Bank’s stake was approximately 1.89%.

According to the filing, the sale percentage of RBL Bank in Kilburn crossed 2% on August 11, 4% on August 12, 12% on August 17, 14% on August 18, 16% on August 19 and 18% on August 22 , respectively. .

The transaction was carried out on the stock exchange at the prevailing market price. While the total consideration for the sale is approximately 64 lakh shares representing an 18.65% stake in Kilburn amounting to almost 28.66 crore.

Following such sale, the Bank holds 1.02% of the paid-up share capital of Kilburn.

On BSE, RBL Bank shares settled at 98.25 each down 1.6%. The market capitalization of the bank is approximately 5,890.23 crore.

RBL Bank is one of India’s leading private sector banks with a growing presence across the country.

In Q1FY23, RBL Bank recorded a net profit of 201 crore compared to a net loss of 459 crores in the same quarter last year. Net interest income (NII) amounts to 1,028 crores up 6% from 970 crore in Q1FY22. The bank’s provisions have been reduced and asset quality has improved.

During the quarter, provisions and contingencies decreased 82% year-on-year and 31% quarter-on-quarter for 253 crores in Q1FY23. Meanwhile, the gross NPA improved to 4.08% from 4.99% in Q1FY22 and 4.40% in Q4FY22.

As of June 30, 2022, the Bank had 502 bank branches and 1,302 commercial correspondent branches, including 289 points of sale. RBL Finserve, a 100% subsidiary of the Bank, has 789 corporate correspondent agencies.

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