December 28, 2021 4:29:58 am
The Reserve Bank of India (RBI) on Monday said RBL Bank is well capitalised and the private lender’s financial position of the bank “remains satisfactory”.
The central bank clarified that the appointment of Additional Director in private banks is undertaken under Section 36AB of the Banking Regulation Act, 1949 as and when it is felt that the board needs closer support in regulatory/ supervisory matters.
“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 said.
On Monday, RBL Bank shares fell 18.32 per cent to Rs 140.90 on the BSE, following the recent changes in the management.
According to the RBI, as per half-yearly audited results as on September 30, 2021, the bank has maintained a comfortable capital adequacy ratio of 16.33 per cent and provision coverage 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 said.
RBL Bank’s new interim managing director and CEO Rajeev Ahuja on Sunday claimed that the bank and its management have the full support of the Reserve Bank after the central bank appointed its nominee on the board and long-term MD and CEO Vishwavir Ahuja proceeded on leave six months ahead of the end of his tenure.
The exit of Vishwavir Ahuja came after the RBI on Friday appointed Yogesh K Dayal, Chief General Manager, RBI, as an Additional Director on the board of RBL Bank for a period of two years till December 23, 2023 or till further orders, whichever is earlier. The board appointed Rajeev Ahuja, currently the Executive Director, as interim MD and CEO of the bank with immediate effect.
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”.
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