RBL Bank loses 3% of deposits in last one week.
Livemint
march 17,2020
Private sector lender RBL Bank on Tuesday said it has lost about 3% of its total deposits in the last one week owing to withdrawals by institutional depositors and a couple of state government organizations. There was no material impact on retail deposits.
As of 31 December, the bank’s total deposits stood at ₹62,907 crore, of which ₹16,855 crore were in current and savings account (CASA).
“However, this issue is being addressed by us on a one-on-one basis with the state governments and also at the industry levels by the Reserve Bank of India (RBI). In spite of this, we remain highly liquid with significant retail deposits, institutional lines, refinance, and surplus liquid assets," the bank said in a statement.
Last week, the central bank wrote to state governments, advising them against moving their deposits from private sector banks. This came in the wake of concerns regarding the health of private sector lenders after the RBI imposed a moratorium on Yes Bank on 5 March. Meanwhile, RBI governor Shaktikanta Das on 16 March assured all depositors of Yes Bank Ltd that their money was safe and there was no reason to withdraw cash in panic.
Yes Bank has enough liquidity and RBI is ready to provide liquidity support to the bank if required, Das said.
“I want to tell depositors that their money is completely safe. No reason for panic withdrawal or undue worry," he said.
In the wake of strong market rumours and speculation, RBL Bank, on Tuesday, reiterated that the bank was financially strong, well-capitalized, profitable, and a growing entity with a strong governance set-up.
“Market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts. RBL Bank is well-capitalized with a capital adequacy ratio of 16.08% with tier-1 at 15.02%," the bank said, adding that there has been no material adverse change in the asset quality since it announced its December quarter financial results on 22 January.
At 0954 am, shares of RBL Bank were trading 3.3% higher at ₹168.30 on the BSE in a largely positive market, with the benchmark Sensex up more than 1%.
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