Is it true that ICRA has downgraded the ratings of RBL Bank?

Let me clarify, ICRA has not downgraded the bonds but only placed them on Rating Watch, which is a kind of warning signal that the bond could face serious repercussions if the liquidity and solvency position deteriorates further. Deposits in the September quarter were lower by 2.8% but there is not major run that ICRA has seen at any of the bank branches or even at the ATMs of the RBL Bank. But ICRA is not taking chances and wants to be cautious.

ICRA placed RBL Bank’s long-term rating (bonds “AA-”) and medium-term ratings on credit watch after RBI appointed Yogesh Dayal as a nominee on the RBL board. At the same time, the CEO Vishwavir Ahuja proceeded on long leave. The rating watch only means that ICRA will continue to closely monitor developments that could have material impact on liquidity of RBL bank. ICRA is worried about a run on RBL deposits that could snowball rapidly.