RBL Bank Stock Falls 3% After This Investor Sells Rs 229 Crore Worth Shares In Block Deal

Mumbai-based private sector lender, RBL Bank witnessed a selling pressure on Friday after investor CDC Group PLC offloaded equity shares worth Rs 229 crore or 1.5% in the bank. CDC's shareholding in RBL Bank has reduced to 4.03% as of now compared to the holding at the end of the June 2023 quarter. Despite the latest selling, RBL Bank is on the move to settle the current week on a positive note.

RBL Bank shares touched an intraday low of Rs 222.40 apiece down by 3% in the early trade of BSE. At the time of writing, the stock traded at Rs 226.25 apiece, lower by 1.33%.

Its current market cap is over Rs 13,580 crore.

Data from BSE showed that, in a block deal on Thursday, CDC Group sold 9,942,312 equity shares at Rs 230.02 per share aggregating to Rs 228.69 crore.

As of June 30, 2023, CDC's shareholding in RBL Bank stood at 3,31,41,041 equity shares or 5.53%.

The latest block deal will reflect in the shareholding pattern of RBL Bank as of the September 30, 2023, quarter.

As per Trendlyne data, RBL Bank is under Turnaround Potential (DVM) which means that the stock has low to medium durability scores, moderate valuation and rising momentum. Increasing momentum suggests that these stocks may have a potential for recovery.

Further, the bank's average delivery volume is 34.11%. The stock's 100-day and 200-Day SMA are at 179.2 and 168.5. It is trading above 8 out of 8 SMAs. Meanwhile, the RSI is at 62.3, trading above 6 out of 9 Oscillators in a bullish zone.

During the June 2023 quarter, RBI Bank posted a net profit of Rs 288 crore, up by 43% YoY. While net interest income (NII) which is the difference between interest earned and expanded, recorded a growth of 21% YoY and 3% QoQ to Rs 1,246 crore. Net interest margins for the quarter stood at 4.84%, expanding from 4.36% for Q1 FY23.

As of June 2023, the lender's net advances book jumped 21% YoY to Rs 73,087 crore, and deposits zoomed 8% YoY to Rs 85,636 crore. In terms of asset quality, RBL Bank's gross NPA ratio dipped to 3.22%.

RBL Bank's MD R Subramaniakumar last month said that they are confident of continuing this healthy performance in upcoming quarters. New initiatives undertaken in the last Financial Year on newly secured product launches and scale-up of granular retail products have picked up pace. RBL has also seen traction in cross-selling with existing customers contributing meaningfully now towards advances and deposits. Further, the asset quality parameters have remained stable.

RBL Bank is one of India's leading private-sector banks with an expanding presence across the country. The Bank offers specialized services under five business verticals namely: Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets and Treasury & Financial Markets Operations.

Currently, the bank services over 13.65 million customers through a network of 520 branches; 1,115 business correspondent branches (of which 298 banking outlets) and 414 ATMs spread across 28 Indian states and Union Territories.