RBL or Ratnakar Bank Limited is headquartered in Mumbai, Maharashtra. The bank has five distinct sectors across which it provides a wide range of financial services.Market Capitalisation
As of the end of the third week of August 2018, the bank has a market capitalisation of about Rs.24,574 crore.
RBL Bank’s Wealth and Recent Performance
From the annual report released for the financial year 2017–2018, the following can be observed in comparison to FY 2016-17:
- Deposits at the bank grew from Rs.34,588 crore to Rs.43,902 crore.
- Net advances also rose from Rs.29,449 crore to Rs.40,268 crore.
- Net profit of the bank increased from Rs.446.05 crore to Rs.635.09 crore.
- Total assets of the bank grew from Rs.48,675 crore to Rs.61,581 crore.
- Net worth of the bank increased from Rs.4,242 crore to Rs.6,546 crore.
- Earnings per share increased from Rs.12.59 to Rs.15.79.
- Net interest income increased from Rs.1,221.34 crore to Rs.1,766.29 crore.
- Net interest margin also increased from 3.29% to 3.8%.
- Capital adequacy ratio grew to 15.33% from 13.72%.
RBL Bank Stock Trends in 2018
- In January 2018, the stock began trading at about Rs.510. The stock spiked to about Rs.545 in the first week of January. There was a decrease after this and the stock fell for most of the rest of the month. The stock closed at about Rs.503 at the end of the month, lower than the price at which it opened for the month.
- In February 2018, the stock opened at about Rs.504 but fell to below Rs.500 during the course of the month. The stock did not regain a price of over Rs.500 for the rest of the month. The final price for the month was about Rs.490.
- The stock opened lower in March 2018, at about Rs.485. During the first week, the stock fell sharply, touching a low of about Rs.453. The stock then appeared to recover, closing for the month at about Rs.479.
- The stock opened higher in April 2018, at about Rs.484. During this month, the stock price saw a steady increase that saw the stock touch a peak of about Rs.537. The stock fell a little to close for the month at about Rs.530. This was still a large increase from the price at the start of the month.
- The stock fell in price for the first three weeks of May 2018 with a low of about Rs.495 at one point. The stock then rallied to close at about Rs.515 at the end of the month.
- After an initial decrease in price in June 2018, the stock recovered and there was a strong increase in prices for the first two weeks. In mid-June 2018, the stock touched a high of about Rs.559. Thes stock closed for the month at about Rs.552.
- The stock remained over Rs.550 for the month of July and closed for the month at about Rs.572. A final 21% dividend was announced on 26 July 2018.
RBL Bank Stock Trends in 2016 and 2017
The bank filed for an IPO in August 2016. The stock began trading from the last day of the month.
- The stock began at a price of about Rs.299 on the last day of August. There were no major fluctuations in price until the end of September when the price dipped to about Rs.285 once and recovered. The final price at the end of the month was about Rs.291. This was close to an Rs.8 decrease from what it opened with on the last day of August 2016.
- October 2016 marked a period of solid growth in prices for the stock. The stock breached both the Rs.300 mark and the Rs.350 mark in the same month. It was on an upward trajectory for most of the month. The final price for the month was about Rs.390.
- In November 2016, the stock rose to about Rs.395 and then decreased in price. It dipped below Rs.350 briefly but recovered soon after. The final price for the month was about Rs.363.
- In December 2016, the stock hovered around Rs.350. In the final week of December 2016, it decreased to close at about Rs.335 at the end of the month.
The stock opened at about Rs.335 in January 2017. It saw a solid increase in prices for the first four months of the year and remained steady for the rest of the year afterward.
- In January 2017, the stock mostly increased in price with minimal fluctuations. The final price at the end of the month was about Rs.382. The stock breached the Rs.400 mark in February 2017. It rose steadily through the month to close at about Rs.476 at the end of the month. Barring minor fluctuations, the price continued to increase through March 2017. The final price of the stock at the end of the month was about Rs.494.
- The price of the stock rose to over Rs.500 in the month of April 2017. The highest price for the month was about Rs.587 but the stock decreased a little later to close for the month at about Rs.564. Throughout May 2017, the stock remained between Rs.500 and Rs.600. The stock closed for the month at about Rs.527. The stock remained between Rs.500 and Rs.550 throughout June 2017. The final price for the month was about Rs.507.
- The price of the stock did not go over Rs.550 again in July 2017 but it did not go below Rs.500 either. The final price for July 2017 was about Rs.534. A final 18% dividend was announced on 27 July 2017. In August 2017, the stock dipped below Rs.500 briefly but rallied to close at about Rs.544 at the end of the month. The stock held steady for the first three weeks of September 2017 but dipped a little during the final week of the month to close at about Rs.503.
- In October 2017, the stock rose to about Rs.536 but the stock did not sustain that price level. It dipped to close for the month at about Rs.525. There were a number of minor decreases and fluctuations in price throughout the month of November but the stock did not dip below Rs.500. The final price for the month was about Rs.516. While the stock opened at a higher price in December 2017, it did not vary by much throughout the month. This was in line with the trend exhibited by the stock for the latter half of the year. The stock finally closed for the month at about Rs.510.
Should You Invest in RBL Bank?
There are a number of reasons to consider investing in RBL.
- According to the annual report for the financial year 2017–2018 as released by the company, it has shown excellent growth in all metrics that can be considered.
- The bank has a solid presence all over India.
- RBL Bank has begun a number of initiatives such as Shmart e-wallet, Saksham and India Startup Club among others.
- RBL is the banking partner for the cricket team the Delhi Daredevils. This provides the bank with a level of visibility that it will not be able to achieve otherwise.
- In 2014, the bank was ranked first among 47 banks in India with regard to the Banking Codes and Standard Board of India.
- For four consecutive years from 2012 to 2015, the bank was recognised for best growth in the mid-size banks category according to a Business Today and KPMG study.
- The bank has bought sections of the the Royal Bank of Scotland, India leading to an increase of about 1.2 lakh customers for RBL.
- The bank has a one third stake in Swadhar Finserve Private Limited.
- The bank has a 10% stake in Utkarsh Micro Finance.
- The bank has shown as 37% year-on-year growth in advances in FY18.
- The total number of customers served by the bank has increased consistently over five years, culminating in a customer base of about 45 lakh in 2017–2018.
- The total number of employees of the bank has increased from 4,902 in FY 2016–2017 to 5,300 in FY 2017–2018.
- The bank has increased the number of branches that it has over the years. The number increased from 239 in 2016–2017 to 265 in 2017–2018.
- Thus, we can say that the bank seems poised for the future.
- While these are good reasons to invest in RBL stock, it would be best to do so after adequate personal research based on personal requirements, financial commitments, and risk appetites.
The bank is a scheduled commercial bank. It offers a range of products and services such as credit cards, consumer banking, corporate banking, private banking, wealth management, and investment banking among others. As of 2017, the assets of the bank were worth about $7.1 billion. As of 2017, the total number of employees of the bank stood at 4,902. As of June 2018, the bank had 342 branches around India, supplemented by 488 ATMs. The bank has a presence in 20 states and Union Territories.
History of the Company
The bank was founded in the year 1943. It was initially a regional bank with two branches, one each in Kolhapur and Sangli. In the year 1959, the bank became a scheduled commercial bank. The bank had a turnaround in performance and gained prominence after Mr. Vishwavir Ahuja became the CEO in 2010. The bank which was earlier known as Ratnakar Bank was renamed as RBL Bank in mid–2014. In 2016, the bank filed for an initial public offering (IPO). The stock traded at about Rs.299 on the first day of trading. Over two years, the stock price kept increasing with an increase in performance of the bank. The stock traded at over Rs.570 by the end of the third week of August 2018, a tremendous increase in a two-year period.
Management of the Company
The board of directors of the bank consists of the following individuals:
Vishwavir Ahuja - Managing Director and CEO
Prakash Chandra - Non-Executive Chairman
Rajeev Ahuja - Executive Director
Vijay Mahajan - Non-Executive Director
Rama Bijapurkar - Independent Director
D. Sivanandhan - Independent Director
Jairaj Purandare - Independent Director
P. Sudhir Rao - Independent Director
Vimal Bhandari - Independent Director
Ishan Raina - Independent Director
The management team of the bank includes:
R. Gurumurthy - Head - Risk and Governance
Shanta Vallury Gandhi - Head - HR, CSR, and Internal Branding
Andrew Gracias - Head - Financial Markets
Brijesh Mehra - Head - Corporate, Institutional, and Transactional Banking
Vincent Valladares - Head - Commercial Banking
Harjeet Toor - Head - Retail, Inclusion and Rural Business
Surinder Chawla - Head - Geography, Branch and Business Banking
Jaideep Iyer - Head - Strategy
Bhaskar Niyogi - Chief Risk Officer
Neeta Mukerji - Chief Credit Officer
Shrinath Bolloju - Chief Operations Officer
Sunny Uberai - Head - Client Services
Ujual George - Chief of Staff and Head - Transformation
Mohit Kapoor - Head - Legal
Mr. Vishwavir Ahuja, MD and CEO, has an IIM degree from India and an MS degree in International Finance from the USA. Before joining RBL, he was the CEO of Bank of America in India. He joined RBL in the year 2010. He has over 35 years of experience in the industry. From the time he took over, he has been responsible for growing the bank’s balance sheet almost 25 times. He took the bank public in 2016. The bank achieved a market capitalisation of about Rs.20,000 crore in April 2017.
RBL Listing in NSE, BSE, and Other Indices
The bank is listed under the following codes:
IND: Finance - Banks - Private Sector
ISIN Code: INE976G01028
The bank forms a part of indices like the Nifty 200, Nifty Midcap 150, S&P BSE 500, S&P BSE Finance and S&P BSE Allcap among other indices.
The stock is listed on the BSE and the NSE.
The bank’s registered office is located at the following address:
RBL Bank Limited, First Lane, Shahupuri, Kolhapur - 416 001, Maharashtra, India
Phone number: 0231 6650 214
Fax: 0231 2657 386
The bank’s corporate office is located at the following address:
RBL Bank Limited, One Indiabulls Centre, Tower 2B, 6th Floor, 841, Senapati, Bapat Marg, Lower Parel (W), Mumbai - 400 013, Maharashtra, India.
Telephone number: +91 22 4302 0600
Fax: +91 22 4302 0520
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