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HomeBusinessRBL Bank Shares Tank 20% After CEO's Exit, RBI Move

RBL Bank Shares Tank 20% After CEO’s Exit, RBI Move

RBI has appointed Yogesh Dayal as a further director of RBL Bank for 2 years.

New Delhi: Shares of RBL Bank plunged on Monday after its high govt stepped down and the Reserve Bank of India (RBI) appointed an govt to its board. As of 9:59 am, the personal lender’s inventory fell as a lot as 20 per cent to its cheaper price band of Rs 138 on the BSE index.

The central financial institution has appointed Yogesh Dayal, chief common supervisor at RBI, as a further director of RBL Bank for 2 years.

RBL’s board has accepted a request from Vishwavir Ahuja, managing director and chief govt officer, to proceed on medical go away with fast impact.

“We wish to mention that the bank is well placed to execute its business plan and strategy as communicated during our earnings call dated October 28, 2021. The business and financial trajectory continues to be on improving trend, post absorbing the challenges due to Covid pandemic,” the financial institution stated.

The financials of the financial institution stay strong with wholesome capital adequacy of 16.3 per cent, excessive ranges of liquidity as mirrored via Liquidity Coverage Ratio of 155 per cent, secure internet NPA (non-performing asset) of two.14 per cent, credit score deposit ratio of 74.1 per cent and leverage ratio of 10 per cent, for the quarter ended September 30, 2021, it stated.

In addition, the financial institution has additionally improved the granularity of its deposits and advances, RBL Bank stated.

Bank worker unions’ umbrella physique AIBEA had written a letter to Union Finance Minister Nirmala Sitharaman expressing concern that all the pieces was not proper at RBL Bank and it was going the Yes Bank and Lakshmi Vilas Bank method.

“We are worried and concerned about the developments that are taking place in the affairs of RBL Bank Ltd, the Kolhapur based private bank.

“The sequence of occasions resulting in the sudden exit of Vishwavir Ahuja together with induction of Mr Dayal from RBI on the board as further member signifies that all the pieces just isn’t comfortable with the financial institution,” AIBEA stated in its letter to the Finance Minister.

Mr Vishwavir had been heading the personal sector financial institution for the final one decade.

While the board advisable his continuation, it’s learnt that RBI has agreed just for a brief time period as much as 2022, AIBEA stated additional.

There are additionally stories that the financial institution has been over indulging in retail credit score, micro-financing and bank cards and consequently has burnt its finger leading to weakening the financials of the financial institution, it stated.

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