RBL Bank takes the high road by over 4%

The shares of RBL Bank rallied more than 4% intraday on Tuesday amid weak market conditions.  The lock-in period for institutional investors who bought RBL Bank’s shares through the initial public offer (IPO) ends on Tuesday. As per market regulations, in case of any issue of capital to the public, the minimum contribution of promoters shall be locked in for a period of three years, both for an IPO and FPO.
 
According to experts, the stock is trading at higher multiples due to its strong loan growth and good asset quality compared to peers. In the quarter ended June 2017, the bank’s loan growth was at 40% and the gross non-performing assets at 1.46%.
 
The stock was trading up by 4.69% at Rs 534 per share on the BSE at 1215 hours. It opened at Rs 514.40 per share and witnessed a hike in volume by more than 129.17 times on Tuesday. The stock attracted a total traded volume of 89,94,806 shares and traded value of Rs 47,808.29 lakhs on the NSE as at 1215 hours. The stock’s 52-week high and low stood at Rs 600.90 as on May 3, 2017 and Rs 274.20 as on August 31, 2016. On an YTD basis, the stock advanced by 52.49%.