RBL Bank weighs bond issue to raise up to Rs 3,000 crore

RBL Bank will hold an Annual General Meeting (AGM) on August 24 to consider the fundraising plan

RBL Bank plans to raise up to Rs 3,000 crore through debt securities, the private sector lender said after a board meeting on July 22. The board will take up the proposal for consideration.

The bank, which didn’t give the date for the board meeting, would hold an Annual General Meeting (AGM) on August 24 to consider the plan, it said in a filing to stock exchanges on July 20.

During the day, RBL Bank reported a net profit of Rs 288 crore for the first quarter of the current financial year, up from Rs 201 crore in the year-ago period, beating analyst expectations.

Brokerages had expected a profit of Rs 257 crore for the April-June period.

Also read: RBL Bank Q1 Results: RBL Bank beats Street estimates with 43.28% surge in Q1 net profit

The Mumbai-headquartered bank's asset quality improved as gross non-performing assets (GNPAs) declined to 3.22 percent from 4.08 percent in the year-ago period, indicating an improvement in the asset quality.

Further, the net non-performing assets (NNPA), too, declined to 1.00 percent from 1.16 percent in the year-ago quarter. On July 21, RBL Bank closed at Rs 221.70, up 0.93 percent from the previous close. The benchmark Sensex closed 1.31 percent down at 66,684.26.

Recently, IndusInd Bank, too, said that its board may consider raising Rs 20,000 crore through debt securities on a private placement basis.