RBL Bank gets board's approval to raise up to Rs 3,000 crore

RBL Bank's board on August 22 approved raising up to Rs 3,000 crore through the issue of debt securities, subject to the approval of the members at the ensuing Annual General Meeting (AGM). The approval was given in a meeting held today by the Board of Directors of RBL Bank, it said in a regulatory filing.

Apart from the fundraising nod, the board also approved the appointment of two new members -- Gopal Jain, Managing Partner at Gaja Capital, and Sivakumar Gopalan, a Researcher for over three decades -- to its Board of Directors.

As per the filing, Gopalan is be appointed as an (Additional) Non-Executive Independent Director of the bank from today for a term of five years, while Jain is appointed as an (Additional) Non-Executive Non-Independent Director and will hold office as such up to the date of the ensuing AGM of the bank.

On the appointment of the two new members, Prakash Chandra, Chairman of the Board, RBL Bank, said “I am pleased to welcome Mr. Jain and Dr. Sivakumar, two highly experienced leaders in their fields, to RBL Bank’s Board of Directors. Jain’s business acumen and Sivakumar’s robust experience within the technology space will bring strategic value to our Organisation. The collective experience and guidance of our Board will help us achieve our objective of Growth with Continuity.”

R Subramaniakumar, MD & CEO, RBL Bank, added, “We look forward to their insights as they bring outstanding experience in areas that will play a key role in our Bank’s growth. It will enable us to create a leading digitally-enabled banking franchise and add further value to our stakeholders.

Furthermore, in the meeting held today, the board also approved key amendments to the existing RBL's employee stock ownership plan (ESOP) 2018. As per the filing, the board approved the bank to create, offer, issue and grant or allot 1 crore 75 lakh additional equity stock options exercisable into an equivalent number of equity shares fully paid up of Rs 10 each, in addition to residual/remaining options which remain ungranted under ESOP 2018 as earlier approved.

Shares of RBL Bank on Monday closed 1.25 percent lower at Rs 98.60 apiece on BSE.

Meanwhile, RBL Bank had reported a net profit of Rs 201.16 crore on a standalone basis for the quarter ended June 30, 2022, as a fall in bad assets helped slash the provisioning requirements. The Mumbai-headquartered private lender had reported a net loss to the tune of Rs 459.47 crore in the same quarter a year ago.

Bank's total income in the April-June period of 2022-23 rose to Rs 2,702.91 crore, as against Rs 2,679.19 crore in the same quarter of 2021-22.