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RBL Bank Loses 3% of Deposits in Last One Week

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 Rs 62,907 crore, of which Rs 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. 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. At 0954 am, shares of RBL Bank were trading 3.3% higher at Rs 168.30 on the BSE in a largely positive market, with the benchmark Sensex up more than 1%.
Read EquityPandit’s Nifty Bank Outlook for the Week

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