RBL Bank recovers from 34-month low, jumps 6% on clarification
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Synopsis
ESOPs exercised and sale of equity by the employees for July is in line with the past.
By ETMarkets.com
Last Updated:
NEW DLEHI: Shares of RBL Bank recovered from a 34-month low to jump 6 per cent in Thursday’s trade after the bank clarified that no key managerial personnel (KMP) has sold any shares on July 30, as is reported in the media.
The bank told BSE that it has a board-approved code that lays down processes and procedures to be followed by the employees while trading in the securities of the bank. The bank said it is a professionally managed entity, wherein ESOPS are an important component of employee value proposition.
The scrip jumped 6.07 per cent to hit a high of Rs 332.70 on BSE. It fell 12 per cent to settle at Rs 313.65 on Wednesday, the lowest since October 19, 2016.
“The total employee holding in the bank is 3.46 crore shares with over 25 per cent of the employees holding such shares. Market transactions in RBL Bank shares by employees is a routine activity with regular exercise of ESOPs and sale of equity shares thereafter,” it said.
The ESOPs exercised and sale of equity shares by the employees for July is in line with the past, the company said, adding that no management committee member including KMPs sold any shares on July 30.
Twenty-seven RBL employees had sold bank shares on July 30th. "The total amount of transaction that happened on that day was as small as some three odd lakh shares which is a very small number. No person who was is in key management positions or other such senior individuals who are considered as key management personnel transacted at all," RBL CEO clarified in an interview to ET NOW.
The shares of the bank closed 1.83 per cent higher at Rs 319.40 on BSE.
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There were speculations in the market that stock sale by employees in the wake of Cafe Coffee Day founder VG Siddartha’s death was possibly based on undisclosed knowledge of the group’s exposure to the lender.The bank told BSE that it has a board-approved code that lays down processes and procedures to be followed by the employees while trading in the securities of the bank. The bank said it is a professionally managed entity, wherein ESOPS are an important component of employee value proposition.
The scrip jumped 6.07 per cent to hit a high of Rs 332.70 on BSE. It fell 12 per cent to settle at Rs 313.65 on Wednesday, the lowest since October 19, 2016.
“The total employee holding in the bank is 3.46 crore shares with over 25 per cent of the employees holding such shares. Market transactions in RBL Bank shares by employees is a routine activity with regular exercise of ESOPs and sale of equity shares thereafter,” it said.
The ESOPs exercised and sale of equity shares by the employees for July is in line with the past, the company said, adding that no management committee member including KMPs sold any shares on July 30.
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Twenty-seven RBL employees had sold bank shares on July 30th. "The total amount of transaction that happened on that day was as small as some three odd lakh shares which is a very small number. No person who was is in key management positions or other such senior individuals who are considered as key management personnel transacted at all," RBL CEO clarified in an interview to ET NOW.
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The shares of the bank closed 1.83 per cent higher at Rs 319.40 on BSE.
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