The RBL Bank stock gained as much as 6% amid a highly volatile market on Tuesday after its board approved the issue of debt securities on a private placement basis up to ₹3,000 crore to fund its expansion plans. The fundraising is subject to the approval of the shareholders at its ensuing annual general meeting, says the private bank.

Reacting to the fundraising news, the stock of the Mumbai-based private lender surged about 6.6% to reach an intra-day high of ₹1,04.7. The banking stock closed at 5.95% or ₹5.85 up at ₹104.10 on the Bombay Stock Exchange (BSE).

The banking stock has outperformed the sector by 5.19% today and has gained after two days of consecutive falls. It is trading higher than 5-day, 20-day and 50-day moving averages but lower than 100-day and 200-day moving averages.

Overall, the stock has risen 6.28% in the past five days; and 9.58% in the past month. However, it's down over 25.13% in the past six months and 21.69% in the year-to-date period. The stock has declined 34.13% in the past year. It touched a 52-week low of ₹74.15 on June 20, 2022, and a 52-week high of ₹221.20 on November 10, 2021.

In comparison, the benchmark Sensex closed 0.44% or 257.43 points up at ₹59,031.30, while the Nifty 50 was also up 0.50% at ₹17,577.50.

Over 22.83 lakh shares exchanged hands on the counter today, as compared to the two-week average quantity of 9.12 lakh. RBL Bank's current market cap stands at ₹6,231.96 crore.

The RBL board also approved the appointment of Sivakumar Gopalan as an (additional) non-executive independent director of the bank, w.e.f. August 22, 2022, for five years. Sivakumar Gopalan has served as an independent director on the Board of Andhra Bank and NPCI. He is currently an independent director at CCIL, NSDL, IFTAS and IIBF, and serves on several technical advisory committees, including those of RBI, NPCI, CCIL, NSDL and SEBI.

The RBL board also approved the appointment of Gopal Jain as an (additional) non-executive non-independent director from August 22, 2022. Jain is a managing partner and founder of Gaja Capital based in Mumbai. Gaja Capital is a leading mid-market private equity firm in India.

Additionally, the RBL Bank board has also decided to issue and allot 1,75,00,000 additional equity stock options exercisable into the equivalent number of equity shares fully paid up of ₹10 each, in addition to remaining options, which remain ungranted under ESOP 2018 as earlier approved by the board.

RBL Bank technical analysis

RBL Bank stock rises 6% after board nod to raise ₹3,000 cr