RBL Bank to raise ₹1,566 crore through preferential allotment to Baring PE Asia, others1 min read . Updated: 20 Aug 2020, 03:07 PM IST
- Shares will be allotted to these investors at a price of Rs177 per share. As of 1.35 pm, RBL Bank shares were trading at ₹183.9 apiece, down 0.46% on the BSE.
MUMBAI : Private sector lender RBL Bank Ltd on Thursday said that it will raise ₹1,566 crore through a preferential allotment of shares to a group of investors led by Baring Private Equity Asia, with the bank looks to beef up its balance sheet following a 50% fall in June quarter profit as provisions for doubtful loans doubled.
According to the bank’s exchange filings, Baring PE Asia owned entity Maple II B.V, will pick up a 9.45% stake in the bank for an investment of almost ₹1,000 crore.
Other investors participating in the round include ICICI Prudential Life Insurance Co Ltd, which will pick up a 3.13% stake with an investment of ₹330.5 crore and private equity firm Gaja Capital, which is investing ₹150 crore for a 1.42% stake. UK’s development finance institution CDC Group is also investing ₹86.5 crore in this round. CDC already holds a 5.5% stake in the bank
Shares will be allotted to these investors at a price of Rs177 per share. As of 1.35 pm, RBL Bank shares were trading at ₹183.9 apiece, down 0.46% on the BSE.
The funding will increase the bank’s capital adequacy ratio to 18.6%, it said. This preferential allotment of shares needs an approval from the company’s shareholders.
RBL Bank reported a 47% decline in its June quarter net profit to ₹141 crore on the back of higher provisions and lower other income.
The bank’s total provisions more than doubled on a year-on-year (y-o-y) basis to ₹500 crore in Q1 FY21. It set aside ₹240 crore in covid-19 provisions, taking its total cumulative provisions to ₹350 crore in the six months to June. RBL Bank’s other income was down 31% y-o-y to ₹334 crore.
The bank reported that 13.7% of its loan book was under moratorium as on 30 June, compared to 33% earlier. The fall in moratorium has been led by wholesale loans where 5% loans are under moratorium as compared to 22% earlier.