The sale has been driven primarily with the need to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise & purchase vested ESOPs and pay associated tax
RBL Bank fell as much as 7.60% after Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of the bank sold 18.92 lakh shares for ₹38.52 crore.
At 1:35 pm, shares of RBL Bank were trading at ₹197.50 apiece on the BSE, down 6.22% from its previous close, while the benchmark Sensex dropped 1.63% to 38,823.84.
The sale has been driven primarily with the need to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise & purchase vested ESOPs and pay associated tax, as well as to take care of some pressing family commitments, the bank said in a regulatory filing on Friday after market hours.
The sale represents 18% of his family's total holdings and Ahuja continues to retain 80.10 lakh shares or 1.6% of the holding of RBL bank post the sale.
"While I have sold a small part of my shareholding in the bank, I strongly believe that RBL Bank has a robust balance sheet and business franchise, is well capitalized & fortified to deal with the economic impact of the prevailing pandemic situation confronting the nation, and extremely well positioned to exploit market opportunities in the short as well as long term. It has strong growth prospects over the next several years especially in areas which we have chosen to scale-up," Ahuja said.
The private bank's profit fell 47.1% to ₹141.22 crore on 2.6% rise in total income to ₹2,568.32 crore in Q1 FY21 over Q1 FY20. Net Interest Margin (NIM) stood at 4.85% as on 30 June 2020 as against 4.31% as on 30 June 2019.
RBL Bank is a private sector bank offering corporate & institutional banking, commercial banking, branch & business banking, retail assets, development banking and financial inclusion, treasury and financial markets operations.