There is no need for depositors and other stakeholders to react.
New Delhi: The Reserve Bank of India (RBI) on Monday stated that RBL Bank Ltd is “well capitalized and its financial position remains satisfactory.” The clarification, RBI said, comes amid “speculation regarding RBL Bank in certain quarters that appear to arise from recent events surrounding the bank.”
“According to the semi-annual audit results on September 30, 2021, the bank has maintained a Comfortable Capital Adequacy Ratio of 16.33% and a Contingency Insurance Ratio of 76.6%. Insurance Ratio the bank’s liquidity (LCR) was 153% percent as of December 24, 2021 versus the regulatory requirement of 100 percent,” the Reserve Bank’s announcement read.
“Moreover, it should be clarified that the appointment/addition of Directors in private banks is made in accordance with Section 36AB of the Banking Regulations Act, 1949 when and deemed necessary by the board of directors to assist. stricter in matters of management or supervision,” it added.
“Therefore, depositors and other stakeholders do not need to react to speculative reports,” the RBI statement added.
Shares of RBL Bank plunged today after the bank’s top executive resigned and RBI appointed an executive to its board. Shares of the private lender have fallen as much as 20% to a lower price of Rs 138 on the BSE index.
The central bank appointed Yogesh Dayal, general manager at RBI, as an additional director of RBL Bank for two years.
RBL’s board of directors has accepted a request from Vishwavir Ahuja, chief executive officer and chief executive officer, for an immediate leave of absence.
Earlier, the patron body of bankers unions AIBEA wrote a letter to Union Finance Minister Nirmala Sitharaman expressing concern that things are not well at RBL Bank and that it is moving in the direction of Yes Bank and Lakshmi Vilas.
