RBL Bank raises INR 2600 crore via Certificate of Deposits
- ByTejika Bajaj | December 31, 2021
RBL Bank recently raised INR 2600 crore via issuance of certificate of deposits. The infusion of funds has been created in an attempt to add liquidity into the institution even though RBL has a pre-existing buffer of liquidity worth INR 1500 crores.
The recent move of the bank is also aimed at piquing investor interest and confidence amidst the recent change in the management team as well as inclusion of a central bank core team member in the bank’s board of directors.
The CDs have been raised through seven primary transactions by the bank. The CDs are of two maturity kinds- six months and 45 days. RBL has sold off a major chunk of its six-month securities that offered a 5% return for a sum of INR 2,200 crore. Likewise, the balance of INR 400 offered a 4 percent interest to holders.
Sources reveal that the CDs might have been subscribed to by Punjab National Bank, Union Bank of India, Bank of Baroda as well as State Bank of India. RBL has received an A1+ rating grade for selling CDs.
Though the recent infusion of funds through CD indicate stability and financial resilience of the bank, various speculations still grapple the air as the bank has seen some significant changes in its management post the inclusion of an RBI official in the board of directors. Many customers have also rushed to withdraw their deposits from the bank post the market speculation.
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