RBL Bank Limited, a private-sector lender on Tuesday said it has raised Rs 330 crore (about $50 million) from CDC Group Plc, which is a UK-based development finance institution through Basel III compliant Tier II capital. The capital infusion will help the bank expand to new regions within India.
The fundraising will help the bank strengthen its capital base to meet future requirements, the bank said in a statement.
This the third round of funding the private-sector lender received in two-and-a-half years. Previously in October 2015, the bank raised Rs 44.5 crore and in March 2014, it secured investment of Rs 174 crore.
The rounds of funding by CDC have helped the lender bank's growth as it developed from a regional bank to a pan-India bank with 201 branches and 373 ATMs across 16 states in India.
"This infusion of funds is testimony to the trust that CDC Group has in our capability to deliver highly-skilled and technology-driven services. It is also a reaffirmation of the close and long-term relationship we share with CDC," Vishwavir Ahuja, RBL's Managing Director and CEO said.
The RBL stock was trading at Rs 302.70 at around 12:45 p.m. on Wednesday, up 1.34 percent from its previous close on the Bombay Stock Exchange.
Incorporated in 1943 as Ratnakar Bank, RBL Bank earned a net profit of Rs 292.48 crore on revenues of Rs 3,234.85 crore for the financial year 2015-16, up from Rs 208.45 crore and Rs 2,356.5 crore in the preceding financial year.
RBL Bank's total business size is over Rs 45,000 crore and it employs close to 3,900 people as of March 31, 2016.