RBL Bank CEO and CEO, Vishwavir Ahuja has resigned
New Delhi:
RBL Bank CEO and CEO Vishwavir Ahuja has resigned and the bank has appointed Rajeev Ahuja as interim director effective immediately.
The Reserve Bank of India (RBI) has also appointed chief executive officer Yogesh K Dayal as an additional director on the board of RBL Bank.
In a regulatory filing, RBL Bank said that its board had accepted “Vishwavir Ahuja’s request for an immediate leave of absence.”
During the RBL Bank board meeting held on 25 December, Mr Rajeev Ahuja, chief executive officer of the bank, was appointed interim chief executive officer and effective chief executive officer. immediate effect, subject to regulations and other approvals.
Other terms and conditions of his appointment, such as remuneration, will remain unchanged.
The development comes after RBL Bank received notice from RBI on 24 December that Mr Dayal has been appointed as an additional director on the board of RBL Bank for a period of two years, effective from December 24, 2021 to December 23, 2023. or until another order is made.
“We would like to mention that the bank is in a good position to execute on its business plan and strategy as announced in our earnings press conference on October 28, 2021. Business trajectory Business and financials continue to trend towards improvement, after absorbing the challenges posed by the pandemic,” said RBL Bank.
The bank’s financial position remains stable with a healthy capital adequacy level of 16.3%, a high level of liquidity demonstrated by a Liquidity Coverage Ratio of 155%, and stable net bad assets (NPA). is 2.14%, credit deposit ratio is 74.1 it adds.
The bank added that the granularity of deposits and advances has also improved.
The patronage of the bankers union AIBEA wrote a letter to Finance Minister Nirmla Sitharaman expressing concern that things are not well at RBL Bank and that it is moving in the direction of Yes Bank and Bank of America. Lakshmi Vilas.
“We are concerned and concerned about the ongoing developments in the work of RBL Bank Ltd, a private bank based in Kolhapur. The chain of events that led to the sudden departure of Vishwavir Ahuja along with the introduction of Mr. Dayal from RBI to the board as an additional member indicates that things are not well with the bank,” AIBEA said in a letter to the Finance Minister.
Vishwavir Ahuja has led private sector banking for the past decade.
While the board recommends that he proceed, it is possible that the RBI has agreed only for the short term to 2022, AIBEA added.
There were also reports that the bank got too hung up on retail credit, microfinance and credit cards and thus burned its fingers, leading to the weakening of the bank’s finances, it said.
“In light of the problems faced by private banks such as Yes Bank and Lakshmi Vilas Bank last year, we urge you to immediately intervene in the matter for the benefit of depositors of regional banks. this private sector and consider necessary steps including the merger of this bank with a public sector bank,” urges AIBEA’s letter to Ms. Sitharaman.
