RBL Bank shares fall in the stock markets on Monday
Shares of RBL Bank fell nearly 23 per cent to hit a low of Rs 85.20 before closing at Rs 87.60 per share on the National Stock Exchange (NSE) on Monday. The shares started trading at Rs 102.25 earlier in the day.
Analysts attributed the disappointing performance of RBL Bank shares to the management change announced by the lender on June 11.
The bank’s shares fell on Monday, the first day of trading after the Reserve Bank of India (RBI) approved the appointment of R Subramaniakumar as managing director and chief executive officer (MD and CEO) of RBL Bank.
RBL Bank, in an exchange filing dated Saturday, June 11, 2022, said, “RBI has approved the appointment of Shri R Subramaniakumar as the Managing Director and CEO of the Bank for a period of three years from the date of his assuming the charge. ” ,
Prior to this, Mr. Subramaniakumar was the former Managing Director and Chief Executive Director of the state-run Indian Overseas Bank. He was also appointed as the administrator of Dewan Housing Finance Company Limited after the board of the mortgage financier was superseded.
On December 25, 2021, the RBI had announced its decision to appoint Yogesh Dayal, the head of its official communications department, as a member of the board at RBL Bank.
Soon after the RBI announcement, RBL Bank informed the exchanges on the same day that its former MD and CEO Vishwavir Ahuja has gone on leave with immediate effect.
The bank then named Executive Director Rajiv Ahuja as the interim MD and CEO of the bank.
“The (recent) developments are not due to asset quality, advance issues. The bank has full support of RBI,” Rajeev Ahuja told reporters two days after taking over as interim head of the bank.