scorecardresearchRBL Bank gains over 3% as market takes in RBI's action; check details

RBL Bank gains over 3% as market takes in RBI's action; check details

Updated: 21 Mar 2023, 03:12 PM IST
TL;DR.

On Monday, RBI fined the bank 2.27 crore for violating regulations relating to recovery agents. Analysts believe the news only slightly affected the stock's sentiment.

RBL Bank in green zone on Tuesday

RBL Bank in green zone on Tuesday

Shares of RBL Bank Ltd rose over 3% on Tuesday trade after the market digested the Reserve Bank of India's (RBI) move to fine the lender over violation of regulations.

On Monday, the RBI fined the bank 2.27 crore for violating regulations relating to recovery agents. Analysts believe the news only slightly affected the stock's sentiment.

According to an exchange filing, the penalty has been imposed in exercise of powers vested in RBI, for non-compliance with certain provisions of the directions issued by RBI relating to the two key areas i.e. Internal Ombudsman Scheme 2018 and recovery agents engaged by the bank.

"This action is based on the deficiencies in regulatory compliance observed relating to the period FY 2018-19 to FY 2021-22. The bank has hence further strengthened its internal processes and procedures around these aspects," said the private sector bank in its filing.

The stock has fallen 25.38% from 52-week high of 189.3 seen on June 20, 2022. The stock price rose 3.6% and underperformed its sector by 4.4% in the past year. The stock's weekly average delivery volume is 25.19%.

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RBL Bank in Tuesday's session

"Today, the stock has bounced along with the broader markets and from strong support of 200-day simple moving average (SMA), 131 - 130 remains strong support and 148 is next resistance," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

According to MintGenie poll, 18 analysts on an average recommend 'hold' rating on the stock.

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First Published: 21 Mar 2023, 03:12 PM IST