RBL Bank clarifies appointment of RS Kumar with asset quality concerns
RBL Bank on Tuesday cleared up the buzz regarding considerable speculation and rumors linking the appointment of the Bank’s new Managing Director and CEO, RS Kumar, to 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 unsubstantiated and purely speculative in nature.”
For the year ended March 31, 2022, the Bank’s gross and net NPAs were 4.4% and 1.3%, with a provision coverage ratio of 70.4%, with no discrepancies to report. As the Bank has pointed out in its earlier comments, the Bank is well resourced and does not foresee any asset quality issues.
Additionally, as previously discussed, given strong provision coverage, declining delinquency trends, and strong visibility of the GNPA book recovery, FY23 credit costs are expected to be significantly lower than of exercise 22.
The Bank also remains well capitalized and following its recent Tier 2 capital increase on May 13, 2022, from United States International Development Finance Corporation, the US development finance institution, the Bank’s capital adequacy ratio has increased at about 17.8%.
At around 10:55 am, RBL Bank was trading at Rs88.65 each, up Rs0.75 or 0.85% from its previous close of Rs87.90 each on BSE.