India's RBL Bank to raise 65 bln rupees via institutional placement of shares, debt issue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 27 2024
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Source: reuters
- RBL Bank Fundraising: RBL Bank plans to raise up to 65 billion rupees through a combination of qualified institutional placement (QIP) of shares and debt sale.
- Fund Utilization: The bank will raise 35 billion rupees through QIP and 30 billion rupees through the issue of debt securities via private placement, with a focus on growing its loan book by 20% over the next two financial years.
- Background: This fundraising marks RBL's first share issue via institutional placement since 2021 when the bank faced management changes and increased regulatory scrutiny due to unsecured borrowing concerns.
- Industry Trend: Indian banks like Punjab National Bank and State Bank of India have also been raising funds to meet the growing demand for loans.
- Financial Performance: In fiscal 2024, RBL Bank reported a 20% growth in advances and a 22% growth in deposits, with its shares ending 2.1% higher following the fundraise announcement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
