Fundraise Alert: RBL Bank board clears Rs 6500 cr fundraising plan, shares gain 4%

Fundraise Alert : RBL Bank on Friday said its board has approved plans to raise up to Rs 6,500 crore through a mix of equity and debt instruments. The fundraising will include an issue of equity shares worth Rs 3,500 crore via Qualified Institutions Placement (QIP) in one or more tranches, and another Rs 3,000 crore through debt securities on a private placement basis, also in tranches.

The announcement came after market hours. Earlier in the day, RBL Bank shares ended 4.44% higher at Rs 262 on the NSE, adding Rs 11.15 from the previous close.

Earlier approvals lapsed

The private lender had earlier secured approvals for similar fundraising plans at its 81st AGM on August 7, 2024. However, those permissions expired as the bank did not tap the market during that period.

Stock performance and recent bulk deal

The fresh plan follows a strong rally in the bank’s stock over the past six months, during which it surged 60%. This compares with modest gains of 8% in the Nifty and 7% in the BSE Sensex. RBL Bank’s stock is also trading comfortably above its 50-day and 200-day moving averages of Rs 254.2 and Rs 195.2, respectively.

On Thursday, French lender Societe Generale purchased over 31 lakh RBL Bank shares worth Rs 79 crore via bulk deals at Rs 250.57 apiece, a 2% discount to the previous closing price.

Recent financial performance

For the first quarter ended June 2025, RBL Bank reported a standalone net profit of Rs 200.33 crore, down 46% from Rs 371.52 crore a year earlier. The bank attributed the decline to weaker interest income and higher expenses.

Net Interest Income (NII) slipped 13% year-on-year to Rs 1,481 crore, while net interest margin (NIM) stood at 4.50%. Operating profit fell 18% to Rs 703 crore, as unsecured lending slowed and the repo rate cut impacted earnings. Meanwhile, operating expenses rose 12% YoY to Rs 1,847 crore.

This takes the total fund infusion approved by RBL Bank's board to Rs 6,500 crore through a mix of equity and debt instruments.

Speaking about the QIP, RBL Bank said that the board has approved the plan to raise "funds by way of a Qualified Institutions Placement by means of issuance of Equity Shares (QIP) at an appropriate time for an amount upto Rs. 3,500 crore, in one or more tranche or tranches."

The raising of funds through the issuance of debt securities will also be done in one or more tranches on a private placement basis from time to time, the bank added.

The announcement was made in the post market hours of August 29. The shares of the private lender closed more than 4 percent higher at Rs 262 apiece, after Societe Generale bought nearly 33 lakh shares of the company at an average price of Rs 250.57 apiece, according to data on bulk deals available on NSE.