According to a media report, RBL Bank is seeking to restructure its finances following a leadership change at the private lender. The report highlights the bank's market capitalization decline by over half in the past five years.
RBL Bank Ltd shares are expected to attract attention in Wednesday's trading session following a media report citing sources, indicating that the private sector lender has sold approximately Rs 800 crore of its credit card portfolio to Kotak Mahindra Bank at a significant discount. According to the ET report, this deal reflects the increasing strain in the unsecured loans sector.
After a change in leadership, RBL Bank is reportedly undertaking measures to improve its financial position. The bank has experienced a significant decline, losing more than half of its market capitalization over the last five years. According to the report, delays in credit card repayments contribute to one-fifth of RBL Bank's total gross non-performing assets (NPAs).
In a recent development, the RBI granted a one-year extension to the credit card partnership between Bajaj Finance Ltd and RBL Bank, contrary to expectations of a longer duration. RBL Bank shares have witnessed a 51% increase in the past year, with a 16% gain in the last month.
Earlier this week, the banking stock garnered attention following the bank's disclosure to stock exchanges. It stated that the Reserve Bank of India has granted approval to ICICI Prudential Asset Management Company Ltd and ICICI Prudential Life Insurance Co for acquiring a significant shareholding in the bank within one year, by December 26, 2024. The RBI directed the two ICICI entities to ensure that their combined holding in RBL Bank does not surpass 9.95% of the paid-up share capital or voting rights of the bank at any given time.
RBL Bank, in a filing, added, "Furthermore, in the event that the aggregate holding falls below 5%, prior approval from the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank."
