homefinance NewsRBL Bank’s financial health stable; don’t react to speculation: RBI

RBL Bank’s financial health stable; don’t react to speculation: RBI

RBL Bank’s financial health stable; don’t react to speculation: RBI
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By CNBCTV18.com Dec 27, 2021 1:39:52 PM IST (Updated)

Rumours about the bank’s financial health have been doing the rounds following Vishwawir Ahuja’s sudden exit.

The Reserve Bank on Monday said RBL Bank was well capitalised and that the financial position of the bank remained satisfactory.

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“There has been speculation relating to the RBL Bank Ltd. in certain quarters which appears to be arising from recent events surrounding the bank,” the RBI said in a statement.
On Christmas day, the RBI appointed Yogesh Dayal, the chief general manager in-charge of department of communication, as an additional director on the board of the bank. The same day, RBL Bank informed stock exchanges that its MD and CEO Vishwavir Ahuja, a veteran banker, has gone on leave with immediate effect.
Rumours about the bank’s financial health have been doing the rounds following Vishwawir Ahuja’s sudden exit. RBL Bank shares are down around 14 percent to Rs 147. Earlier in the day, the stock had crashed over 20 percent and hit a 52-week low of Rs 132.25.
Excerpts from RBI’s statement:
“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.
Further, it is clarified that appointment of Additional Director/s 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. “
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