RBI: Health of RBL Bank ‘stable’; shares nonetheless fall 18% on rejig worry
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The Reserve Bank of India (RBI) on Monday mentioned RBL Bank is effectively capitalised and the non-public lender’s monetary place of the financial institution “remains satisfactory”.
The central financial institution clarified that the appointment of Additional Director in non-public banks is undertaken below Section 36AB of the Banking Regulation Act, 1949 as and when it’s felt that the board wants nearer assist in regulatory/ supervisory issues.
“As such, there is no need for depositors and other stakeholders to react to the speculative reports. The bank’s financial health remains stable,” the RBI mentioned.
On Monday, RBL Bank shares fell 18.32 per cent to Rs 140.90 on the BSE, following the latest modifications within the administration.
According to the RBI, as per half-yearly audited outcomes as on September 30, 2021, the financial institution has maintained a snug capital adequacy ratio of 16.33 per cent and provision protection ratio of 76.6 per cent. “The liquidity coverage ratio (LCR) of the bank is 153 per cent as on December 24, 2021 as against regulatory requirement of 100 per cent,” it mentioned.
RBL Bank’s new interim managing director and CEO Rajeev Ahuja on Sunday claimed that the financial institution and its administration have the total assist of the Reserve Bank after the central financial institution appointed its nominee on the board and long-term MD and CEO Vishwavir Ahuja proceeded on go away six months forward of the tip of his tenure.
The exit of Vishwavir Ahuja got here after the RBI on Friday appointed Yogesh Okay Dayal, Chief General Manager, RBI, as an Additional Director on the board of RBL Bank for a interval of two years until December 23, 2023 or until additional orders, whichever is earlier. The board appointed Rajeev Ahuja, presently the Executive Director, as interim MD and CEO of the financial institution with quick impact.
The RBI clarification on Monday follows “speculation relating to the RBL Bank in certain quarters which appears to be arising from recent events surrounding the bank”.
