RBL Bank slips into red

RBL Bank is in the red since morning trades. The stock price slid down over 3% to the low point of the day at Rs.508.90; though it has recovered since then, it remains in the red.

The stock is down after the bank, in its FY17 Annual Report stated that the divergence, which is the money kept aside to cover bad loans, between its own gross bad loan estimates and those made by the central bank stood at Rs339.30 crore at the end of FY16. The divergence in provisioning reported during the year was at Rs 137.40 crore.

This disclosure comes after the RBI issued a directive in April 2016, asking banks to state bad loan divergence in their financial statements if it exceeded 15%. This is what happened with Axis, ICICI Bank as well as Yes Bank, which also reported huge divergences.