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Dismissing rumours and speculation about the bank, private sector lender RBL Bank on Tuesday said "there is no truth to these rumours and they are unfounded, unsubstantiated and malicious." In a statement to stock exchanges, RBL Bank said it "continues to remain healthy, profitable and its growth journey is intact."

"There have been recent rumours and market speculation on RBL Bank which has been impacting the good name and reputation of the bank. The bank remains well capitalised with its capital adequacy and liquidity coverage ratios well above the regulatory threshold," RBL Bank said.

RBL Bank also said that it "continues to make investments in expanding its distribution infrastructure (including retail branches and ATMs) and people and is committed to providing exemplary products and services to its customers."

The Reserve Bank of India on Tuesday assured the general public that the Indian banking system is safe and stable. The RBI's assurance comes in the wake of rumours about certain banks, including cooperative banks. The RBI has urged the public not to panic.

"There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours," the RBI said in a tweet.

Shares of many banks took a beating on Tuesday on worries about the health of India's financial sector. RBL Bank shares fell nearly 8% on NSE. Investors fretted about the level of exposure of the banking sector to troubled real estate and housing finance firms.

The PMC Bank crisis has also sparked renewed concerns about the health of banking sector.

The RBI has barred the Mumbai-based urban cooperative bank from renewing or granting any loans or making investments without prior approval of the central bank, while depositors can only withdraw a maximum of 10,000 from their PMC Bank accounts over the next six months. The Economic Offences Wing (EOW) of Mumbai Police has filed a complaint, accusing the bank's management of concealing non-performing assets. (With Agency Inputs)

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