RBL Bank will raise Rs 3,500 crore through qualified institutional placement (QIP) and Rs 3,000 crore through issue of debt securities via private placement, the lender informed in an exchange filing.

This will be RBL Bank's first share issue via institutional placement since 2021 when it saw an abrupt management transition and the central bank increased scrutiny of the lender by temporarily appointing a director on its board amid reports of a large share of unsecured borrowing on its books.

QIP is a fundraising tool used by publicly traded companies in India to raise capital from domestic or foreign institutions. Introduced by the Securities and Exchange Board of India (SEBI), it is a method for companies to quickly and efficiently raise funds without undergoing the lengthy process of public offerings.

Only QIBs such as mutual funds, foreign institutional investors, banks, insurance companies, and pension funds can participate in a QIP.

Companies use QIPs to raise capital for various purposes such as expansion, debt repayment, working capital needs, and other corporate requirements. SEBI has laid down specific guidelines for QIPs to ensure transparency and protect investor interests.