Plans to raise around ₹1,000 cr this fiscal

Private lender Ratnakar Bank, re-branded as RBL Bank, is now in a consolidation phase where it plans to pause and go slow on expansion.

“Right now, we are going through a digestion phase where it is important to strengthen the existing processes, teams, cross-selling and branding,” said Rajeev Ahuja, Head-Strategy, RBL Bank.

The bank plans to go for an IPO (initial public offering) in the third or fourth quarter of this fiscal year to raise around ₹1,000 crore.

Ahuja said the bank is trying to sharpen its investment and pay-back models and is looking at quality after the significant re-branding and expansion last year. “We want to tighten this phase and then move to the next phase. Being listed is a milestone, so we have to be ready,” Ahuja said.

In the last three years, RBL Bank received investments aggregating ₹1,470 crore in three tranches, which helped in building the bank’s internal competencies, products, technology and processing centres.

Growth and expansion

According to Ahuja, it is important to identify the target segment for the bank and the value that can be provided. Though no sector is eliminated, Ahuja said, “We are looking at the outskirts of core regions where companies and businesses are growing.”

He said: “RBL Bank would look at interesting areas like transportation, agriculture, logistics, processes and services such as advertising, legal, e-commerce, etc., where there is new capital and fresh thinking.” “On the IPO front, clearly the market mood is positive. We should be ready for the new journey whatever the response,” Ahuja added.

(This article was published on July 7, 2014)
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