RBL Bank shares surge over 9 pc

New Delhi, Oct 20 (PTI) Shares of RBL Bank zoomed over 9 per cent on Monday as the company expects Emirates NBD Bank's USD 3 billion fund infusion, the largest FDI in the financial services sector, to close by June next year, once the regulatory and government approvals are secured.

The stock jumped 9.13 per cent to settle at Rs 326.85 on the BSE. During the day, shares of the firm surged 9.81 per cent to Rs 328.90 -- its 52-week high.

At the NSE, the stock zoomed 9 per cent to Rs 326.65.

RBL Bank expects Emirates NBD Bank's USD 3 billion fund infusion to close by June next year once the regulatory and government approvals are secured, a top official said on Sunday.

RBL Bank will merge with NBD's wholly owned subsidiary operating in India and become a "listed foreign bank subsidiary" post-deal, the management said.

"Our aspiration is to grow multi-fold, and the capital will help. We are now a mid-sized small bank. Our aspiration is to move into the league of large banks," RBL's Managing Director and Chief Executive R Subramaniakumar told reporters in Mumbai on Sunday.

In the next three to five years, RBL Bank will be a "large bank, along with the larger banks operating in the country," he said, replying to a question on whether it will break into the top-five private sector lenders.

Explaining the merger process, he specified that the bank will grow its corporate book by writing bigger loan cheques, and the deal with NBD will also help it get into the wealth management business. PTI SUM SUM TRB TRB