RBL Bank Is All Set For Its IPO: Aim of The IPO

RBL Bank is all Set for its IPO
RBL Bank, earlier known as Ratnakar

Bank is all set for its IPO from 19th
August- 23rd August, 2016. The bank
aims to raise Rs 1213 crore with this IPO
through mix of fresh issue as well as offer
for sale by shareholders with face value of
Rs 10. The price band of the issue will be
between Rs 224-225. The Kolhapurbased lender has made a pre-IPO
placement of 2.5 crore equity shares to
few investors at a price of Rs 195 per
share, and has raised Rs 488 crore.
Aim of the IPO

The Scheduled Commercial Bank, RBLs aim is to raise funds for Tier-I equity capital base,
and to also fulfill the incremental capital needs under the Basel-III norms as well as RBIs
norms, through this IPO. The Bank will issue 3.7 crores equity shares through fresh issue to
raise around Rs 832.5 crores. The bank is also aiming to raise Rs 378.5 crore through offer for
sale (OFS) by sale of 1.69 crore shares by existing shareholders.
Industry Outlook of the Banking Sector

The Indian banking system is currently in a restructuring phase. The financial as well as the
economic conditions of the country are not just stable but quite better than other countries in
the world. The Indian banking industry is on a path of modernisation with new trends like
payment and small finance banks.
Schemes like Pradhan Mantri Jan Dhan Yojana, governments initiatives on financial inclusion
and rising disposable income will be positive for garnering deposits.
RBL Bank at a Glance

The Kolhapur based bank was commenced its work in the year 1943. Till 2010, RBL remained
a regional bank with focus on Maharashtra region only; but after new management came into
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force, they made quantum jump in growth. Bank currently has 197 branches and 362 ATMs
with presence across metro, urban and rural areas.
Financial Analysis
Particulars (cr)
FY 16
FY 15
FY 14
FY 13
FY 12
Interest Earned
2,744.3
1,953.1
1,351.6
879.3
465.1
Net Total Income
3,234.9
2,356.5
1,612.6
1,005.8
532.2
Deposits
24,348.7
17,099.3
11,598.6
8,340.5
4,739.3
Advances
21,229.1
14,449.8
9,835.1
6,376.2
4,132.3
Net NPA %
0.59
0.27
0.31
0.11
0.2
CAR %
12.90
13.10
14.60
17.11
23.2
Adj EPS
9.01
7.06
3.41
3.66
3.06
Page 2
Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways
are solely the personal views of the research team. Users are advised to use the data for the
purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also
engaged in Investment Advisory Services and Portfolio Management Services. Dynamic
Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our
activities were neither suspended nor we have defaulted with any stock exchange authority with
whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection
and based on their observations have issued advise letters or levied minor penalty on for certain
operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst:
DYNAMIC/its Associates/ Research Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject
company.
Do not have any other material conflict of interest at the time of publication of the
research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or
any compensation or other benefits from the subject company, nor engaged in market
making activity for the subject company
Have not served as an officer, director or employee of the subject company
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RBL Bank is all Set for its IPO

RBL Bank, earlier known as Ratnakar

Aim of the IPO

Industry Outlook of the Banking Sector

RBL Bank at a Glance

Net Total Income

Have not served as an officer, director or employee of the subject company

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