Jul 07, 2017 01:04 PM IST | Source:

RBL Bank to raise Rs 1680 crore; reports NPA divergence of Rs 340 cr for FY16

Private sector lender RBL Bank on Friday said its Board had approved fund raising of Rs 1,680 crore through preferential share sale.

Beena Parmar @BeenaParmar
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Private sector lender RBL Bank on Friday said its Board had approved fund raising of Rs 1,680 crore through preferential share sale.

The Board “approved the proposal to issue 3.26 crore shares of face value of Rs 10 on a preferential basis to one or more prospective investors at a price of Rs 515 per equity share totaling Rs 1,680 crore (including share premium)…” the bank said in a regulatory filing on BSE.

This will be subject to shareholders’ approval.

The bank is raising capital to augment its tier-I capital for supporting the future organic growth of business as well as enabling the bank to capitalise on inorganic opportunities and for other general corporate purposes.

Investors include ABG Capital, CDC Group, Global IVY Ventures LPP, HDFC Life Insurance company and ICICI Lombard general insurance company, among others.

On Thursday, the bank reported a divergence of Rs 339.30 crore in its own gross bad loans from those classified by the Reserve Bank of India at the end of financial year 2015-16.

Its gross non-performing assets as assessed by the Reserve Bank of India (RBI) stood at Rs 547 crore, as on March 31, 2016, the bank disclosed in its annual report. While announcing its fourth quarter results, the bank had reported a gross NPA of Rs 208.05 crore. The net NPA showed a divergence of Rs 201.9 crore.

The divergence in provisioning reported during the year was at Rs 137.40 crore, the lender said.

In April, the RBI came out with a circular for banks to make disclosures of divergences in NPA reporting between banks and the central bank. The RBI said that if the bank’s reported NPA number for FY16 was lower by 15 percent than the number assessed by RBI, they must disclose it in their notes to accounts.

In FY16, the regulator had conducted a review of bank books and had assessed a certain gross NPA number for them.

Larger private sector lenders such as ICICI Bank, Axis Bank and Yes Bank have all reported divergences in their respective annual reports a few weeks ago.

ICICI Bank showed a divergence of Rs 5,104 crore when the bank had pegged its gross NPA at Rs 26,221 crore for the year ended March 31, 2016, while RBI assessed it at Rs 31,326 crore.

In Axis Bank, the RBI’s assessment showed the NPA number in FY16 at Rs 9,480 crore, while the lender had reported gross NPAs at Rs 6,087 crore in FY16.

As for Yes Bank, it had reported gross NPAs worth Rs 748.9 crore as on March 31, 2016, while the RBI pegged the gross NPAs at Rs 4,925.6 crore.
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