RBL raised Rs 488 crores through pre-IPO placement

After filing an initial public offering (IPO) this year RBL Bank (formerly known as Ratnakar Bank Ltd.) raised Rs 488 crores from international investors through pre-IPO fund raising. However, the number of shares sold were not available for the pre-IPO deal. 

RBL is one of fastest growing private sector banks in India. In June. it decided to raise Rs 1100 crores through IPO. The pre- IPO investment made is the maiden one by Asian Development Bank (ADB) in the bank and second of the UK government’s development finance arm CDC Group Plc. 

The capital was raised for the purpose of compling with Reserve Bank of India’s (RBI) Basel III guidelines and augmenting the Bank’s tier 1 capital base to meet the future capital requirements expected to arise out of growth in the Bank’s assets. Commenting on the investment, Vishwavir Ahuja, MD & CEO, RBL Bank said “We continue to remain committed towards building a banking franchise founded on the principles of a broad-based capital base, quality management team, strong operating platform, robust corporate governance framework and processes, comprehensive product suite and modern technology infrastructure.”  

On the financial front the total consolidated operating revenue of RBL for FY15 stood at Rs 2356 crores from Rs 1613 crores in FY14 an increase of 46.13 percent. The Net profit stands at Rs 208 crores for FY15 an increase of 124 per cent on yearly basis. The net non performing assets (NPA) increased from Rs 31 crores as of FY14 to Rs.39 crores as of FY15. The net interest income (NII) of the company stands at Rs.1953 crores in FY15 compared to Rs. 1352 crores in FY14 an increase of 44.45 per cent. 

Both advances and deposits of the bank grew 47% over that in the previous year to Rs 14450 crore and Rs 17099 crore respectively. Gross and net non-performing assets stood at 0.77% and 0.27% of the total gross and net advances respectively.  

RBL offers a comprehensive range of banking products and services customized to cater to the needs of large corporations, small and medium enterprises (“SMEs”), agricultural customers, retail customers and development banking & financial inclusion (low income) customers. As of March 31, 2015, bank has 183 interconnected branches and 348 interconnected ATMs spread across 13 Indian states and union territories serving over 1.3 million customers. The bank has cultivated a customer-centric culture where we use our industry domain knowledge, experience and technology with the goal of satisfying the client’s complete banking needs.