InvestorQ : why did RBL Bank stock dropped 13% today. is anything wrong with the bank.
Sudhendu Kumar Singh made post

why did RBL Bank stock dropped 13% today. is anything wrong with the bank.

Answer
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Ria Jain answered.
6 months ago


RBL Bank has been under pressure for a long time and has lost close to 85% from its peak. The problems for the stock worsened due to two reasons. Last July when the chairperson of Coffee Day Enterprises committed suicide, it was revealed that the group had a major exposure to a lot of bad assets across many groups. Subsequently, the implosion of Yes Bank was partly responsible for the sharp correction in the stock price of IndusInd Bank and RBL Bank. Lately, it was also revealed that state governments that had banking relationships with RBL Bank and IndusInd Bank had withdrawn funds to state owned banks. This has led to one more round of selling. The cycle could turn only if there is confidence rebuilt in these smaller private banking stocks about their stability and long term sustenance.