RBL Bank Block Deal | 7.9% equity worth ₹1,100 crore change hands

As many as 4.81 crore shares of Mumbai-based private sector lender RBL Bank changed hands in a block deal that took place in the early minutes of trading on Wednesday.

The shares changed hands at a price of ₹229.5 per share, implying a total transaction value of ₹1,100 crore. The number of shares that changed hands are equivalent to 7.9% of the bank’s total equity.

The official buyers and sellers of the transaction are not yet known.

On Wednesday, July 25, CNBC-TV18 reported, citing sources that Baring Private Equity Asia through its vehicle Maple II B.V. was likely to sell its entire stake in private sector lender RBL Bank through block deals.

The report said that the sale was to take place at a floor price of ₹226 per share, representing a 5% discount to the previous closing price. The total offer size was to amount to ₹1,081.2 crore, comprising 7.9% of RBL Bank’s equity, sources said.

As per data available on the Bombay Stock Exchange, at the end of the first quarter, Maple Ii B.V. held 7.89% stake in the company, implying a clean out trade.

In the first quarter, RBL Bank’s net profit rose 29% to ₹371.5 crore, exceeding the CNBC-TV18 poll estimate of ₹339.5 crore. The bank’s net interest income (NII) also saw an increase, up 19.5% to ₹1,699.9 crore compared to ₹1,422.3 crore in Q1 of FY24.

The lender’s net interest margin was 5.67% up versus 5.45% QoQ and versus 5.53% YoY. The bank’s gross non-performing assets (NPA) increased slightly to 2.69% from 2.65% in the previous quarter. However, net NPA remained stable at 0.74%.

Shares of RBL Bank are trading 3.4% lower at ₹229.80. The stock has declined 20% so far in 2024.