The private lender said that the speculation and rumors linking its new MD & CEO with asset quality challenges of the bank are unfounded and baseless.
In a statement released to the media, RBL Bank said that there has been considerable speculation and rumors linking the appointment of the new MD & CEO of the bank, R. S. Kumar, with asset quality challenges for the bank in the near future.
"We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature," the bank said.
For the year ended 31 March 2022, the bank's gross and net NPA were 4.4% and 1.3%, with a provision coverage ratio of 70.4%, with no reportable divergence. The bank is well provided and does not foresee any asset quality challenges.
Given the strong provision coverage, lower delinquency trends, and strong recovery visibility from the GNPA book, credit costs for FY23 are expected to be materially lower than FY22.
The bank also remains well capitalised and post its recent Tier-2 capital raise on 13 May 2022, from United States International Development Finance Corporation, America's development finance institution, the capital adequacy ratio of the bank has increased to approximately 17.8%.
Shares of RBL Bank were currently trading 0.28% higher at Rs 88.10 on the BSE. The scrip had slumped 22.67% to end at Rs 87.85 yesterday.
The RBL Bank June 2022 futures were trading at 88.30, at a premium of 0.20 points as compared with the spot at 88.10. The RBL Bank option chain for 30 June 2022 expiry showed maximum Call OI of 88.5 lakh contracts at the 100 strike price. Maximum Put OI of 35.8 lakh contracts was seen at 90 strike price.
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