Shares of one of India’s leading private sector banks surged by 2.2 percent on BSE to Rs. 235.3 on Friday, after investment banks Morgan Stanley and Societe Generale bought shares in the bank through bulk deals, amid the exit of significant shareholder Baring Private Equity Asia.
At 12:40 p.m., the shares of RBL Bank Limited were trading in the green at Rs. 234.15, up by 1.6 percent, compared to its previous closing price of Rs. 230.4, with a market cap of Rs. 14,196.3 crores.
What’s the News:
According to 25th July bulk deal data from BSE, prominent foreign investment banks Morgan Stanley Asia and Societe Generale have made significant acquisitions in RBL Bank.
Morgan Stanley Asia bought 1.25 crore equity shares, equivalent to a 2.06 percent stake, with a total investment of nearly Rs. 285 crore at an average price of Rs. 228 per share.
Societe Generale purchased 70.93 lakh equity shares in the private lender, representing a 1.17 percent stake, for a total of Rs. 161.7 crore, at the same price.
However, EQT, formerly known as Baring Private Equity Asia, has exited the RBL Bank through its vehicle Maple II B.V. This involved offloading its entire holding of 4.78 crore shares, equivalent to a 7.89 percent stake, and making Rs. 1,091 crore at an average price of Rs. 228.08 per share, higher than the floor price offered which was Rs. 226 per share.
Financials:
The bank experienced significant growth in its net interest income, showing a year-on-year rise of nearly 20 percent from Rs. 1,422 crore in Q1 FY23-24 to Rs. 1,700.6 crore in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 319.5 crore to Rs. 351 crore, indicating a growth of around 10 percent YoY.
In Q1 FY24-25, the Net Advances book of RBL Bank grew by 19 percent YoY to Rs. 86,704 crore, while the Retail Advances book grew 31 percent YoY to Rs. 53,737 crore.
Stock Performance:
The stock has delivered negative returns of nearly 2 percent in the last one year as well as around 18 percent negative returns year-to-date.
About the company:
Founded in the pre-independence era in 1943, RBL Bank Limited is one of India’s leading private-sector banks.
RBL Bank is a banking company engaged in offering specialised services under five business verticals namely: corporate banking, commercial banking, branch & business banking, retail assets and treasury & financial markets operations.
Written by Shivani Singh
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