RBL Bank says it is well capitalised, concerns ‘misplaced’

New Delhi, March 11 (SocialNews.XYZ) Amidst concerns of stability and asset quality of RBL Bank, the private lender on Friday said that it has adequate capital and there has been no adverse change in the asset quality.

Concerns have gained momentum after the Yes Bank failed and it has been put under moratorium.

In a regulatory filing, RBL Bank on Wednesday said that prevailing concerns around the bank are "misplaced and motivated" and based on "misinformation".

"Rumours around financial health and stability of the institution especially in social media seem to be misplaced, motivated and not based on facts," RBL Bank said in a regulatory filing.

The bank said that it is adequately capitalised with a capital adequacy ratio of 16.08 per cent with Tier-1 at 15.02 per cent, higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent respectively.

It further said that there has been "no material adverse change" in the asset quality since we announced our Q3 financial results on January 22, 2020 adding that the bank's guidance remains consistent.

The filing further said that the bank's Liquidity Coverage Ratio (LCR) is at 145 per cent of statutory requirements as at the end of last week.

"All our business segments are doing well, we continue to expand presence across newer geographies by adding branches and are also hiring more people as previously planned. The Bank continues to attract additional deposits from retail, corporates and institutional segments," it said.

The bank said that the management team of RBL Bank is fully committed to develop the institution to the next level and our growth journey remains intact.

"We wish to re-emphasize that RBL Bank is a fundamentally strong institution," said the bank. The lender reported a 69 per cent year-on-year decline in its net profit to Rs 70 crore for the October-December, on the back of rise in provisions.

Source: IANS