RBL Bank Managing Director sell stake in bank

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It is a beginning of trouble for India’s another private lender. RBL Bank Ltd Managing Director and CEO Vishwavir Ahuja has sold shares worth 3.20 crore in the open market, according to BSE website data.

Ahuja sold 0.02% stake in the bank in two tranches of 50,000 shares each in February. He holds 1.97% stake in the lender post the stake sale.

RBL Bank shares have tumbled over 54% since 28 May 2019 due to deterioration in its asset quality.

RBL Bank shares were at 326.50 on BSE, down 1.77% from its previous close.

In the December quarter, RBL Bank’s gross bad loans as a percentage of total loans rose 195 bps year-on-year to 3.33%. On an absolute basis, gross non-performing assets almost trebled YoY to 2,010 crore. The bank’s net NPA ratio was up 135 bps. Sequentially, fresh slippages increased 4.9 times to Rs1040 crore, while recoveries and write offs increased 3.6 times to 570 crore.