RBL BANK:

Oflate, RBL bank is in the buzz. Many fund managers have picked stake in this bank. And few of them call it the next YES Bank or Indus Ind bank. That makes it compulsive to take a look at what makes RBL Bank attractive. Investors need to do their own due deligence before diving in and buying it. But the current market fall due to demonitization and Trump impact could be used if the stock fits your investment theory.

In August 1943, Ratnakar Bank was incorporated as a small, regional bank in Maharashtra with two branches in Kolhapur and Sangli. It was founded by a group of eminent patriotic personalities to cater to the needs of small and medium business merchants in the Kolhapur-Sangli belt. In August 1959, the Bank was categorised as a "Schedulea Commercial Bank" within the meaning of the Reserve Bank of India Act, 1934. In the banking circles, RBL Bank was oftend non whole sale jumed ince a majority of its business came from cities in and around the 1,235-kilometer-long National Highway that connected four of the 10 most populous cities in India from Pune to Chennai.

In 2007, State Bank of Mauritius bought a 4.8% stake in the bank. Other shareholders included Centrum Group and Indocean Fund. In July, 2010, RBL Bank underwent a transformation^[6] during the diffi`cult economic period following the global financial crisis as well as the economic slowdown that followed in India. The Bank inducted Mr. Vishwavir Ahuja as the Managing Director & CEO to transform the institution from an old private sector bank to a new-age bank. The Bank also revamped the management by inducting professionals from the banking, finance, agriculture and other related fields. Since then, RBL has raised Rs. 700 Cr. in January 2011 and Rs. 328 Cr. in April 2014. Investors include World Bank body International Finance Corporation Gaja Capital, Norwest Venture Partners India, Aditya Birla PE, Emerging India Fund, IDFC Spice Fund and Ascent Capital and Capvent

• In Q2 (Sept 2016), RBL’s loan book surged 44% to Rs.24875 Cr
• In Q2, its deposits surged 38% @ Rs.27960 Cr
• Deposits grew mainly because of CASA (current A/c Savings A/c) deposit. It improved to 19.9% – more than double a year ago.
• Whole sale loan book increased 42%ito Rs.15216 Cr, while its non whole sale jumped 48% @ Rs.9658 Cr.
• Operating profit grew 81% while its net profit grew 34%
• Non interest income jumped 51% while its core fee income increased 48%
• Gross NPA is flat @ 1.1%, while net NPA declined to 0.55%