RBI okays RBL Bank’s interim appointment

RBL Bank on Thursday said the Reserve Bank of India (RBI) has approved the appointment of Rajeev Ahuja as interim managing director and CEO for three months from December 25, 2021, or until the final appointment, whichever is earlier.

The RBI had last week appointed an additional director, Chief General Manager Yogesh K Dayal, on the RBL Bank board. Further, MD and CEO Vishwavir Ahuja proceeded on medical leave.

The bank’s board had on December 25 named Rajeev Ahuja, Executive Director, as interim MD and CEO, subject to regulatory and other approvals.

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The RBI had on December 27 advised depositors and other stakeholders to ignore speculative reports about the bank.

The central bank added that RBL Bank’s financial health was stable.

Pointing to the bank’s half-yearly audited results as on September 30, 2021, the RBI said 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 is 153 per cent as on December 24, 2021, against the regulatory requirement of 100 per cent.

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Further, the central bank clarified that the appointment of additional directors in private banks is undertaken under Section 36AB of the Banking Regulation Act, 1949, as and when the board is seen to require support in regulatory or supervisory matters.

During a media call on December 26, Ahuja said RBL Bank and its management has the full support of the RBI.

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He stated that the recent developments were not on account of any concerns over the advances, asset quality or deposits of the bank.

He said the bank has excess liquidity of about ₹15,000 crore, refinance from RBI and bank lines to manage any volatility in deposits.

“The board has elevated an existing member of the management team to the interim MD and CEO role, which should allay concerns on the strategy and smooth functioning of the bank as well as the strength of the overall franchise,” he told mediapersons.