Bankers suggest the deal is completely strategic and indicate that RBL Bank's potential for growth is intact over the long term
There has been much media speculation about the rationale of the Mahindra Group in not just picking up a sizeable 3.53 percent stake in RBL Bank, but announcing it to the public after the deal was done. Of course, the mandatory disclosures on public shareholding in a listed company required this. But if this was just a secondary market transaction play, the automotive-to-technology conglomerate might not want to make a splash of it.
There are some things that stand out which make RBL Bank a good bank to acquire: It has the potential, but it is expected to play out over a long period. It is one of the few mid-sized banks that has a diversified institutional shareholding and is not held by a promoter group or family.