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Ongoing IPO: RBL Bank Limited

Ongoing IPO: RBL Bank Limited


RBL Bank Ltd. began its operations in early 1943 as a small, regional bank in Maharashtra with two branches in Kolhapur and Sangli. The bank over the past six years has transformed itself from a traditional bank to a ‘New Age’ bank. As part of growth strategy the bank also acquired Indian businesses of royal Bank of Scotland including business banking, credit card and mortgage portfolio businesses in FY14. The acquisition helped bank expand its scale of operations and geographic presence. The distribution network of the bank as on 31st March, 2016 includes 362 interconnected ATM’s, 197 branches primarily covering major commercial and urban centers and 3,871 employees.

Objects of the Issue

The issue proceeds would be utilized to augment Bank’s Tier-I capital base to meet bank’s future capital requirements which are expected to arise out of growth in bank’s assets, primarily bank’s loans/advances and investment portfolio, and to ensure compliance with Basel III and other RBI guidelines.

Investment Positives

  • Bank operates through client-centric approach against product-focused approach resulting in growing brand recognition.
  • Net interest income for the bank has grown from Rs 186 crs in Fiscal 2012 to Rs 819 crs in Fiscal 2016, representing a CAGR of 44.7% for the past four fiscal years.
  • Bank has robust risk management system in place. Gross NPA for the bank for FY16 stood at 0.98 while net NPA stood at 0.59.

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