Private sector lender RBL Bank on Friday said its Board had approved fund raising of Rs 1,680 crore through preferential share sale. The investors include ABG Capital, CDC Group, HDFC Standard Life, ICICI Lombard, Multiples Alternate Asset Management, LTR Focus etc.
Renuka Ramnath, Founder & CEO, Multiples Alternate Asset Management sharing her rationale for putting money into RBL Bank, says the young bank has a potential to grow significantly, adding that the bigger banks currently seem to be busy with legacy issues.
According to her, the RBL Bank is well poised to capture growth opportunities and has a great niche in the segment they are present in.
The bank also does not have lumpy exposures to large corporates and infrastructure and so has a huge potential to get good growth by focusing on the newer segments of the economy both on the retail and smaller corporate enterprises.
With regards to expensive valuations of RBL Bank, she said nothing worthwhile in India has ever been cheap.
The house has also been aggressively buying into listed space – like PVR, Arvind etc. However, Ramnath clarified that they are and will remain extremely selective while picking stake in listed companies.
She said, they have been biased towards the Indian consumption sector.For more, watch video