RBI permits ICICI-Pru AMC and ICICI-Pru Life to acquire up to 9.95% stake in RBL Bank
The approval has been granted with reference to an application submitted by I-Pru AMC and I-Pru Life to RBI
Private sector lender RBL Bank on Friday announced it has completed its fundraising process, garnering Rs 1,566 crore in fresh capital via a preferential allotment of shares to a group of investors led by Baring Private Equity Asia.
Bank’s managing director and chief executive Vishwavir Ahuja said that the lender intends to invest in newer products like affordable housing loans to strengthen its presence In the semi-urban and rural markets.
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The bank had last month received the Reserve Bank of India’s nod, allowing Baring to hold up to 9.99 per cent of its capital.
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Baring Private Equity Asia (BPEA) through its vehicle Maple II BV invested Rs 999 crore to hold 9.44 per cent of the Bank, an official statement said.
Other investors in the preferential allotment were: ICICI Prudential Life Insurance Company, which invested Rs 330 crore; Gaja Capital which invested Rs 150 crore, and CDC Group Plc with Rs 86 crore.
“The completion of the fund raise strengthens the Bank’s balance sheet and at the same time it allows us to further accelerate our investments in enhancing our capabilities and delivery platforms, both in digital and physical infrastructure,” Ahuja said.
It can be noted that Indian banks are on a capital raising spree since the onset of the pandemic because they expect heavy losses due to the economic impact of lockdowns.
“We are extremely well placed on capital, liquidity and distribution to now regain our momentum as we emerge out of the COVID pandemic with greater resilience,” Ahuja added.
Baring’s managing director Jimmy Mahtani said, “India’s banking sector is at an inflection point where well-capitalized and tech-enabled banks have an advantage and potential to gain market share in the post-COVID-19 recovery cycle. RBL Bank scores highly on both of these measures.”
The RBL Bank scrip was trading 1.28 per cent up at Rs 205 a piece on the BSE, as against gains of 0.18 per cent on the benchmark at 1452 hrs.
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