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Rumours around financial health and stability of RBL Bank unfounded, says MD and CEO Vishwavir Ahuja

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Rumours around financial health and stability of RBL Bank unfounded, says MD and CEO Vishwavir Ahuja

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State government deposits - the number is not significant, less than 6-7 percent overall, said Vishwavir Ahuja, MD & CEO, RBL Bank.

Market rumours around financial health and stability of RBL Bank is not based on facts, said its MD & CEO Vishwavir Ahuja. “Certainly, the environment over the last few days has raised concerns around stability of certain private sector banks after moratorium announcement on Yes Bank. However, as far as we are concerned, in anticipation we have been maintaining a significant liquidity surplus position,” he added.
“We were always in a comfortable position but in the last few days, on the institutional front, one or two state government organizations have been pulling out some money but that is across the board, across all private sector banks, which is why RBI had to formally reach out to them that they should not be doing that,” added Ahuja.
He further said that they did not see any withdrawals yesterday and added that in the last few days our retail deposit base has held stable.
According to him, there is a window of opportunity for the bank to gain access in corporate sector. Several accounts have moved to us over the last few days. In fact, six marquee corporate accounts have moved to us over last few days, said Ahuja.
Speaking about state government deposits, he said, “The number is not significant, less than 6-7 percent overall. I don’t have the exact number with me but it’s in single digits. There are some state governments, which are very happy with us.”
When asked about COVID-19 impact, Ahuja said, “It will certainly vitiate the economic activity in the country and it will also need response at all levels including at the macro level in terms of the government, the central bank etc. there will be steps needed to stimulate the economy, whether it’s through monetary policy or other measures. However, we are not seeing anything immediate in terms of its impact on our assets.”
He also said they had considered an investment in Yes Bank but then let it pass.
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