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.
Investors
The money will be raised from Maple II BV, ICICI Prudential Life, CDC Group Plc, Gaja Trustee company and Gaja Capital fund II, the bank said in a statement to exchanges.
Holdings
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.
ICICI Prudential Life Insurance Co Ltd, which will pick up a 3.13% stake with an investment of ₹330.5 crore.
Private equity firm Gaja Capital, will be investing ₹150 crore for a 1.42% stake.
And CDC Group is also investing ₹86.5 crore and already holds a 5.5% stake in the bank
Allotment
The board has approved the issuance of 8.84 crore shares at Rs 177 per share to five investors. The shares have been allotted at a discount of 4.19 per cent to the previous close.
Core Equity Ratio
The key gauge for provisioning and lending potential, was at 15.16% end-June compared with a minimum regulatory requirement of 8%
Quarter 1 Results
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.
