RBL Bank tragedy from its MD & CEO Vishwavir Ahuja exit with immediate effect
RBL bank share price slipped more than 20% on Monday, after bank said on Saturday in press release its MD & CEO Vishwavir Ahuja gone on medical leave with immediate effect.
The bank said in its press note that it has strong financial position and liquidity, the bank has appointed Mr. Rajeev Ahuja (existing Executive Director of the Bank) as the Interim Managing Director & CEO of the Bank subject to regulatory and other approvals. And The RBI has full faith with their current management.
Now the stakeholder’s are pointing figures on stability and financial position of the bank as recently we had such issue with the banks like PMC and YES bank. However Reserve bank of India (RBI) has come forward on the issue as the same is being speculated on social media, The RBI issued a statement on RBL bank on Monday 27th Dec 2021 citing;
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 Reserve Bank would like to state that the bank is well capitalised and the financial position of the bank remains satisfactory. 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. The bank’s financial health remains stable.