Buzzing stock | Rbl Bank shares hit their lowest level in 52 weeks, tumbling 10%; here’s why
RBL Bank shares fell 10% on Thursday amid negative news. A Rs A 300 crore loan that was written off within seven months of its sanction became the main reason for the banking regulator’s sudden intervention in private lender RBL Bank, according to a press report.
At 10:46 a.m., RBL Bank shares fell 9.3% to Rs 130.9 on BSE and hit a 52-week low at Rs 130.5.
The bank granted a loan to a company as part of a lender consortium in 2018, and RBI has requested details of the bank’s loan portfolio from the risk department in recent months, according to the report.
So far this week, RBL Bank shares have fallen by around 26%.
Analysts said there is uncertainty at the senior management level and that this instability is likely to impact the lender’s earnings growth with short-term downside risk.
“We believe that with recent developments there may be potential short-term pressure on the stock due to the lingering uncertainty,” brokerage firm Sharekhan said.
The national brokerage firm added that it would like to monitor the coming third quarter results and the bank’s performance, as well as management’s comments on the same and the business strategy ahead.
First publication: STI