We are financially sound: RBL Bank
NEW DELHI: Dispelling rumours about its financial health after the YES Bank crisis came to light, RBL Bank on Tuesday said it was financially strong, wellcapitalised, profitable and a growing entity with a strong governance set-up.
The l e nder s a i d market rumours around f i nancial health and stability of the bank are totally misplaced, motivated and not based on facts.
Last week also, the bank said it was “well capitalised” and there is no adverse change in its asset quality. The statement came in the wake of the YES Bank crisis, following which stock prices of various banks went down sharply.
“In the wake of the significantly higher level of market r umours and s peculati on around RBL Bank stock, we would like to reiterate what we said on March 11, 2020 and wish to reemphasise that RBL Bank is financially strong, well-capitalised, profitable, and a growing entity with a strong governance set-up,” the bank said in a statement on Tuesday.
RBL Bank is well capitalised with a capital adequacy ratio of 16.08% with tier-1 at 15.02%, which is significantly higher than the prescribed regulatory requirement at 11.5% and 9.5%, respectively, it said.
“There has been no material adverse change in the asset quality since we announced our third quarter financial results on Jan 2 2 , 2 0 2 0 and our g ui dance remains consistent,” the statement said.
The bank also urged all its stakeholders to not believe in unsubstantiated information and mischievous rumours.
RBL Bank also maintained that there has been no material change in its asset quality since third quarter results, and that it remains highly liquid with significant retail deposits.