RBI has appointed Yogesh Dayal as additional director of RBL Bank for two years.
New Delhi: Shares of RBL Bank fell as much as 14.98 per cent after its top executive stepped down and the Reserve Bank of India (RBI) appointed an executive on its board. As of 9:59 am, the private lender’s stock fell up to 15 per cent in the lower price band of Rs 138 on the BSE index.
The central bank has appointed RBI Chief General Manager Yogesh Dayal as additional director of RBL Bank for a period of two years.
The Board of RBL has accepted the request of Managing Director and Chief Executive Officer Vishwavir Ahuja to go on medical leave with immediate effect.
“We would like to mention that the Bank is well prepared to execute its business plan and strategy as communicated during our earnings call on October 28, 2021. To absorb the challenges due to the COVID pandemic, Subsequently, the business and financial trajectory continues to improve,” the bank said.
The Bank’s financial position remains strong with high levels of liquidity reflected through healthy capital adequacy of 16.3 per cent, Liquidity Coverage Ratio of 155 per cent, stable Net NPAs (Non-Performing Assets) of 2.14 per cent, Credit Deposit Ratio of 74.1 per cent . The percentage and leverage ratio is 10 per cent, for the quarter ended September 30, 2021, it said.
Apart from this, the bank has also improved the specifics of its deposits and advances, said RBL Bank.
AIBEA, the umbrella body of bank employees’ unions, had written a letter to Union Finance Minister Nirmala Sitharaman expressing concern that all was not well in RBL Bank and it was going the way of Yes Bank and Lakshmi Vilas Bank.
“We are concerned and concerned by the developments in the affairs of the Kolhapur based private bank RBL Bank Ltd.
AIBEA in its letter to the Finance Minister said, “The sudden exit of Vishwavir Ahuja as well as the order of inducting Mr. Dayal on the board as an additional member from RBI indicates that all is not well with the bank. “
Mr. Vishwavir was heading a private sector bank for the past decade.
AIBEA further said that the board recommended their continuation, but it is learned that the RBI has agreed only for a short term till 2022.
There are also reports that the bank has indulged in retail credit, micro-financing and credit cards and has burnt its finger as a result of which the financial position of the bank has become weak.
,