RBL Bank to launch IPO in 9 months

RBL Bank, formerly known as Ratnakar Bank, plans to raise funds through an initial public offer which will hit the market in the next 8-9 months.

“We are preparing ourselves for the IPO and it may hit market in 8-9 months. It would not happen this fiscal but next calendar year,” RBL Bank Managing Director Vishwavir Ahuja told PTI.

The quantum of offer has not been finalised by the board of the bank, he said, adding that the decision will be taken in the next few months after taking into account various factors including Basel III requirement.

The bank has been able to build scale and size in the last four years so that it gets right valuation, he said.

The capital is required for the next phase of operation as the bank has already done with transformation stage, he said, adding it has got high technology and risk management system.

The bank services more than 6 lakh customers and has a total business size of over Rs 26,000 crore. As of September total deposits were Rs 12,000 crore while advances stood at Rs 14,000 crore.

The bank posted a net profit of Rs 87 crore for six months ended September 2014, while for the entire 2013-14 the profit stood at Rs 93 crore.

“So we have almost matched the net profit of the last fiscal in the first two quarters of the current financial year,” he said.

It got capital support of about Rs 1,500 crore from global and domestic investors in the last three years.

The bank had raised Rs 328 crore from a group of global investors, including CDC Group and Asia Capital and Advisors in April 2014.

Existing investors, including International Finance Corporation (IFC) and Gaja Capital, also participated in the capital infusion.

Last year, the bank acquired some assets of Royal Bank of Scotland Group (RBS), including the UK bank’s mortgages, credit card and loan—against—property portfolios.

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