RBL Bank fell 7.60% after Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of the bank sold 18.92 lakh shares for ₹38.52 crore.
At 1.35 p.m., shares of RBL Bank were trading at ₹197.50 each on BSE, down 6.22% from its previous close, while the benchmark Sensex fell 1.63% to 38,823.84.
The sale was primarily driven by the need to extinguish personal debts and the related service burden, undertaken in recent years primarily to exercise and purchase acquired ESOPs and pay the associated tax, as well as to meet certain liabilities. urgent family needs, the bank said in an after-hours regulatory filing Friday.
The sale represents 18% of his family’s total holdings and Ahuja continues to hold 80.10 lakh shares or 1.6% of the RBL bank stake after the sale.
“Although I have sold a small part of my stake in the bank, I firmly believe that RBL Bank has a strong balance sheet and commercial franchise, is well capitalized and strengthened to cope with the economic impact of the current pandemic situation. facing the country, and extremely well positioned to exploit market opportunities in the short and long term. It has strong growth prospects over the next few years, particularly in the areas we have chosen to develop, ”said Ahuja.
Private banking profit fell 47.1% to ₹141.22 crore on a 2.6% increase in total income to ₹2568.32 crore at T1 FY21 compared to T1 FY20. The net interest margin (NIM) stood at 4.85% as of June 30, 2020 compared to 4.31% as of June 30, 2019.
RBL Bank is a private sector bank providing corporate and institutional banking, commercial banking, branch and corporate banking, retail assets, development and financial inclusion banking, corporate banking, treasury and financial markets.