Indian private lender RBL Bank said on Thursday it would raise up to 65 billion rupees ($779 million) through a combination of a qualified institutional placement (QIP) of shares and a debt sale.
The bank will raise Rs 35 billion through QIP and Rs 30 billion through issue of debt securities through private placement, according to a stock exchange filing.
This will be RBL’s first share issuance through an institutional placement since 2021, when the bank experienced an abrupt leadership transition and the central bank increased oversight of the lender by temporarily appointing a director to its board of directors, following reports of a significant amount of unsecured borrowing on its books.
The fundraising comes at a time when the lender is targeting a 20% growth in its loan book over the next two financial years, largely driven by an increase in secured retail assets. RBL, however, did not indicate how it plans to use the proceeds from the latest fundraising.
Indian banks have strengthened their capital base to cope with the increase in demand for loans. Lenders such as Punjab National Bank and State Bank of India have approved fundraising in recent months
In FY2024, RBL Bank recorded 20% growth in its advances, while its deposits grew by 22%.
Shares of the lender ended up 2.1% ahead of the fundraising announcement. ($1 = 83.4240 Indian rupees) (Reporting by Nishit Navin in Bengaluru; Editing by Shailesh Kuber)
