Shares of RBL Bank Ltd were trading in the green and 3% higher on 28 June after the Board of Directors of the company considered and approved raising funds not exceeding Rs 6,500 crore.

In its regulatory filing, the company said that it would raise Rs 3,500 crore via Qualified Institutional Placement  (QIP) and Rs 3,00 crore through the issue of debt securities on a private placement. 

This will be the bank’s first share issue via institutional placement since 2021 when the bank saw an abrupt management transition. The central bank increased scrutiny of the lender by temporarily appointing a director to its board amid reports of a large share of unsecured borrowing on its books.

In its quarterly earnings for January-March, the bank reported a 30% year-on-year increase in net profit to Rs 353 crore, which was driven by non-interest income. 

Its net interest income during the quarter grew by 18% YoY to Rs 1,600 crore, but the bank’s net interest margin contracted to 5.45% during the quarter from 5.62% in the same quarter last year. 

At 3:30 pm, the shares of RBL Bank closed 0.0076% higher at Rs 262.98 on NSE.