Money & Banking

RBL Bank completes fund raise of ₹1,556 crore

Our Bureau. Mumbai | Updated on November 13, 2020

The shares for the pref allotment are priced at Rs 177 apiece   -  Bloomberg

RBL Bank, on Friday, announced the completion of fund raise of ₹1,566 crore through preferential allotment.

“The bank’s Total Capital Adequacy Ratio increases to 18.7 per cent and Core Equity Tier I Ratio to 17.4 per cent,” said RBL Bank in a statement, adding that its total net worth has crossed ₹12,000 crore.

“The completion of the fund raise strengthens the bank’s balance sheet, and at the same time, it allows us to further accelerate our investments in enhancing our capabilities and delivery platforms, both in digital and physical infrastructure,” said Vishwavir Ahuja, Managing Director and CEO, RBL Bank.

The bank is well positioned to capture growth in existing businesses, invest in newer products such as affordable mortgages, which will strengthen its semi-urban and rural offering, and also potentially capture other interesting opportunities that may arise as we navigate the future, he further said.

The preferential allotment has been led by funds affiliated with Baring Private Equity Asia, which, through its vehicle Maple II BV, invested ₹999 crore and will hold 9.44 per cent stake in the private sector lender.

Other investors in the preferential allotment include: ICICI Prudential Life Insurance, which invested ₹330 crore; Gaja Capital through its investment arm Gaja Capital India AIF Trust and Gaja Capital Fund II Limited invested ₹150 crore; and CDC Group put in ₹86 crore.

Published on November 13, 2020

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