RBL Bank IPO has been oversubscribed on day 2

RBL Bank, which has come up with a IPO has seen an overwhelming response from the subscribers. Initial Public Offering of the company opened on Aug 19, and it has been subscribed by 3.08 times on day 2. The issue which closes on Aug 23 has already made headwinds of being the first private sector bank IPO in a decade. Yes Bank, was the last private sector lender, which made its stock market debut in 2005. The institutional investor book was subscribed by 4.27 times; while the non-institutional category, comprising high-net-worth individuals was subscribed 1.07 times. 

RBL Bank will raise around Rs 1,215 crore through the initial public offer (IPO) at a price band of Rs 224-225. HDFC Bank, ICICI Securities, IIFL Holdings, SBI Capital Markets and IDFC Securities are the book running lead managers for the issue. Bank aims to raise its capital base for growth and also to comply with incremental capital needs under the Basel-III norms as well as the Reserve Bank of India’s norms. On the financial front, numbers are quite strong, barring the NPA issue, which is currently plaguing the banking industry.

For the financial year ended March 31, 2016, the lender has reported a net profit of Rs 296.80 crore, up 42.38 per cent against Rs 208.45 crore in the corresponding quarter a year ago. The bank’s gross non-performing assets (NPA) stand at 0.77 per cent and 0.98 per cent respectively for the financial years ended March 2015 and March 2016, respectively.
RBL Bank Limited (formerly known as The Ratnakar Bank limited) is a scheduled commercial bank headquartered in the Kolhapur region of Maharashtra. Founded in August 1943, RBL is one of the oldest private sector banks in India.