Shares of one of India’s leading private sector banks gained 7.5 percent to reach a 52 weeks high price of Rs 242.20 apiece after Mahindra group planned to acquire a strategic stake in the bank.
RBL Bank Ltd shares closed at Rs 239.20 a share on the National stock exchange, up Rs 15.90 or 7.12 percent, with a market capitalization of Rs 14,344 crores.
According to CNBC TV18, The Mahindra Group plans to buy an investment in RBL Bank and is likely to acquire a 4% stake. The Mahindra group intends to raise its holding in RBL Bank to 15-25% if it receives clearance to be a strategic shareholder of RBL Bank.
According to existing RBI norms, industrial groups can own up to 10% of banks but cannot be promoters.
In the previous year, the bank’s share price has risen from Rs 91.65 to current levels, providing multibagger returns of 161 percent. As a result, if an investor purchased 1 lakh shares of a company in the previous year, their holdings are now worth 2.61 lakhs!
RBL Bank is a bank that offers a variety of banking and financial services such as wholesale banking, retail banking, treasury operations, and other banking-related activities.
RBL bank reported a 28 percent increase in interest earned from Rs 2,202 crore to Rs 2,815 crore compared to the same quarter last year.In addition,a 53 percent increase in net profit from Rs 208 crore to Rs 319 crore over the same time period for the quarter ending June 2023, i.e., Q1FY23-24.
According to the recent shareholding pattern,Foreign institutional investors own 28.27 percent,Domestic institutional investors own 18.33 percent and retail investors own 53.38 percent stake.
Written by Omkar Chitnis
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