BackRBL Bank share price surges after clarification on asset quality challenge
RBL share price today surged in the opening bell making an intraday high of ₹91.20 apiece on NSE, more than 2 per cent higher from its yesterday's close
PremiumRBL Bank share price: After hitting lower circuit twice on Monday session, RBL Bank share price today surged in early morning deals after the bank issued clarification in regard to the asset quality challenge faced by the bank. The private lender issued clarification on yesterday's rumor that RBL Bank is facing asset quality challenge and termed them 'baseless and unfounded and purely speculative in nature.'
The RBL Bank issued a press statement in this regard and said, "There has been considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, Mr. R. S. Kumar, with asset quality challenges for the Bank in the near future. We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature."
For the year ended March 31, 2022, the RBL Bank’s gross and net NPA were 4.4% per cent and 1.3 per cent, with a provision coverage ratio of 70.4 per cent, with no reportable divergence. As the Bank has been highlighting in its past commentaries, the Bank is well provided and does not foresee any asset quality challenges.
Also as stated earlier, given the strong provision coverage, lower delinquency trends, and strong recovery visibility from the GNPA book, credit costs for FY 23 are expected to be materially lower than FY22.
The RBL Bank also remains well capitalised and post its recent Tier 2 capital raise on May 13, 2022, from United States International Development Finance Corporation, America’s development finance institution, the capital adequacy ratio of the Bank has increased to approx 17.8 per cent.
RBL share price today surged in the opening bell making an intraday high of ₹91.20 apiece on NSE, more than 2 per cent higher from its yesterday's close of ₹87.85 levels. The private lender on Monday made a new 52-week low of ₹86.35 on NSE as well. On Friday, RBL Bank share price had closed at ₹114.25 levels on NSE.
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