What is the latest on RBL Bank and do you suggest bottom fishing on the stock?

The situation on the RBL Bank stock is going from bad to worse, despite the best continuous assurances from the bank and the RBI. The stock is touching annual lows daily and on 30-Dec the stock touched a new yearly low of Rs.131. The fears were triggered after it was reported that RBL Bank had written off loans worth Rs.300 crore.

In fact, these loans were written off within 7 months of sanctioning, which has been one of the key reasons for the RBI nominating Yogesh Dayal to the board of RBL Bank to prevent a Yes Bank like crisis. Markets were also intrigued by CEO Vishwavir Ahuja proceeding on long leave. RBI has reiterated that RBL Bank is healthy with net NPAs under 2.2%, but markets continue to play safe. It is a stock that is best avoided.