RBL Bank raises ₹1,566 crore capital from Baring, ICICI Prudential

RBL Bank on Friday said it has raised ₹1,566 crore fresh capital through a preferential allotment of shares to a group of investors led by Baring Private Equity Asia. The other investors in the preferential allotment were ICICI Prudential Life Insurance Company, Gaja Capital and CDC Group Plc.

Baring Private Equity Asia through its vehicle Maple II B.V. invested ₹999 crore. ICICI Prudential invested ₹330 crore while Gaja Capital invested ₹150 crore. CDC Group Plc, a shareholder of the Bank since March 2014, invested ₹86 crore. ICICI Securities Limited, UBS Securities India Private Limited and DAM Capital Advisors Limited were advisors to RBL Bank for the transaction.

"The completion of the fund raise strengthens the Bank’s balance sheet and at the same time it allows us to further accelerate our investments in enhancing our capabilities and delivery platforms, both in digital and physical infrastructure," said Vishwavir Ahuja, managing director and chief executive officer, RBL Bank.

The bank wants to invest in newer products like affordable mortgages and strengthen our semi-urban and rural offering. "We are very well positioned to capture growth in our existing businesses, invest in newer products like affordable mortgages which will strengthen our semi-urban and rural offering and also potentially capture other interesting opportunities that may arise as we navigate the future," the CEO added.

"We are extremely well placed on capital, liquidity and distribution to now regain our momentum as we emerge out of the COVID-19 pandemic with greater resilience,” Ahuja mentioned.

Jimmy Mahtani, managing director of Baring Private Equity Asia, said, “RBL Bank has a market leading position in its target segments, a best-in-class digital presence, and a strong management team that together make it one of the fastest-growing new-age banks in India.”

With a network of 398 branches, RBL Bank currently has over 8.76 million customers. RBL Bank is one of India’s fastest growing private sector banks in the country, according to the lender.