Allaying investors' concerns and calming speculations, the Reserve Bank of India on Monday issued a statement clarifying that the financial health of RBL Bank is stable. It further added that the private sector lender is well capitalised and that its financial position is satisfactory.
"The Reserve Bank would like to state that the bank is well capitalised and the financial position of the bank remains satisfactory. As per half yearly audited results as on September 30, 2021, the bank has maintained a comfortable Capital Adequacy Ratio of 16.33 per cent and Provision Coverage Ratio of 76.6 per cent. The Liquidity Coverage Ratio (LCR) of the bank is 153 per cent as on December 24, 2021 as against regulatory requirement of 100 per cent," the RBI said in its statement.
It further clarified that the appointment of Additional Director/s in private banks is undertaken under Section 36AB of the Banking Regulation Act, 1949 as and when it is felt that the board needs closer support in regulatory / supervisory matters. "As such, there is no need for depositors and other stakeholders to react to the speculative reports. The bank’s financial health remains stable," it added.
The shares of RBL Bank tanked on Monday, hitting lower circuit but recovering eventually. As of 1:15 pm, RBL Bank traded with cuts of over 13% while the broader indices traded 0.20% higher.
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