Business Today

RBL Bank shares opened 20% lower salary for new employee

Shares of private sector lenders RBL Bank fell 15% to an all-time low of open trade on Monday, coinciding with the broader market which rose 2.7% in the early markets. Market sentiment remained intact, continuing to sell sharply in global equities as investors feared that higher-than-expected inflation in the United States could provoke sharp actions from central banks.

RBL Bank shares opened 10% lower at ₹ 102.05 compared to the previous closing price of ₹ 113.35 on the BSE. In the first hour of trading to date, the banking stock fell by as much as 15% to hit a 52 – week low of ₹ 96.35, driven by booming sales activity. As many as 17.7 lakh shares worth ₹ 17.24 crore changed hands over the counter against the two-week average of 7.17 lakh stocks, and market capitalization fell to ₹ 5,665.4 crore. The stock rose 52 weeks by ₹ 226.45 on July 8, 2021.

By comparison, BSE Sensex was trading 1,400 points, or 2.6%, lower at 52,900 levels, with all 30 shares flashing red. Bajaj twins, ICICI Bank, Larsen and Toubro, and IndusInd Bank were among the top five losers, falling above 3% each.
RBL Bank said in an exchange filing on Saturday that the Reserve Bank of India (RBI) has approved the appointment of R Subramaniakumar as the bank’s MD & CEO. Subramaniakumar is a former managing director and chief executive officer of public sector lender Indian Overseas Bank, which retired on June 30, 2019. His banking career began with Punjab National Bank in 1980 and led business transformation at PNB for 3 years and changed the business. in particular, digital, human resources, MSME, retail, overseas operations, etc. He was also an Administrator at Dewan Housing Finance Corporation Limited (DHFL) which hit the crisis and reached its resolution.

In a separate development, the bank last week allocated 1,200 equity shares with a face value of ₹10 each to the eligible employees, on June 7, 2022, under the bank’s various ESOP Schemes.