RBL Bank clarifies on appointment of R S Kumar with asset quality challenges

14 Jun 2022 , 11:00 AM

RBL Bank on Tuesday has clarified on the buzz regarding considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, R. S. Kumar, with asset quality challenges for the Bank in the near future.

The company said in a regulatory filing, "We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature."

For the year ended March 31, 2022, the Bank’s gross and net NPA were 4.4% and 1.3%, with a provision coverage ratio of 70.4%, with no reportable divergence. As the Bank has been highlighting in its past commentaries, the Bank is well provided and does not foresee any asset quality challenges.

Also as stated earlier, given the strong provision coverage, lower delinquency trends, and strong recovery visibility from the GNPA book, credit costs for FY 23 are expected to be materially lower than FY 22.

The Bank also remains well capitalised and post its recent Tier 2 capital raise on May 13, 2022, from United States International Development Finance Corporation, America’s development finance institution, the capital adequacy ratio of the Bank has increased to approx 17.8%.

At around 10:55 AM, RBL Bank was trading at Rs88.65 apiece up by Rs0.75 or 0.85% from its previous closing of Rs87.90 apiece on the BSE.