RBL Bank to raise ₹3,000 cr via debt securities; reduces stake in Kilburn to 1.02%

RBL Bank's board of directors on Monday approved fundraising of up to ₹3,000 crore through the issuance of debt securities on private placement. In another development, the company further offloaded additional shares in Kilburn Engineering Ltd. ("Kilburn"). The company's shareholding in Kilburn has now reduced to 1.02%. On BSE, RBL Bank shares were under selling pressure and closed in the red.

In its regulatory filing, RBL Bank said the board of directors approved the "issue of debt securities on private placement basis, from time to time, up to an amount of ₹3,000 crore, subject to the approval of the Members of the Bank at the ensuing Annual General Meeting of the Bank."

Further, in another filing, RBL Bank revealed that they have further sold 3 lakh equity shares representing 0.87% of the paid-up share capital of Kilburn Engineering on August 22.

The bank has been offloading shares in Kilburn from May 17, 2022 and August 22, 2022. In Kilburn, by end of August 19, 2022, RBL Bank's stake was around 1.89%.

As per the filing, RBL Bank's sale percentage in Kilburn crossed 2% on August 11, 4% on August 12, 12% on August 17, 14% on August 18, 16% on August 19, and 18% on August 22, respectively.

The transaction was carried on stock exchanges at the prevailing market price. While the total consideration for the sale is around 64 lakh shares representing an 18.65% stake in Kilburn amounting to nearly ₹28.66 crore.

Post the said sale, the Bank holds 1.02% of the paid-up share capital of Kilburn.

On BSE, RBL Bank shares settled at ₹98.25 apiece down by 1.6%. The bank's market cap is around ₹5,890.23 crore.

RBL Bank is one of India’s leading private sector banks with an expanding presence across the country. 

In Q1FY23, RBL Bank posted a net profit of ₹201 crore compared to a net loss of ₹459 crore in the same quarter last year. Net interest income (NII) stood at ₹1,028 crore up by 6% from ₹970 crore in Q1FY22. The bank's provisions declined and asset quality improved.

During the quarter, provisions and contingencies declined by 82% yoy and 31% qoq to ₹253 crore in Q1FY23. Meanwhile, Gross NPA improved to 4.08% versus 4.99% in Q1FY22 and 4.40% in Q4FY22. 

As of June 30, 2022, the Bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve, a 100% subsidiary of the Bank, accounts for 789 business correspondent branches.