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RBL Bank well capitalised, depositors need not react to speculative reports: RBI

RBL Bank well capitalised, depositors need not react to speculative reports: RBI

The Reserve Bank of India (RBI) has said that depositors and stakeholders associated with RBL Bank need to steer clear of any speculative reports while adding that the bank’s financial health is stable.

The Reserve Bank appointed RBI Chief General Manager Yogesh Dayal as the additional director of the RBL Bank for two years from December 24 this year to December 23, 2023 The Reserve Bank appointed RBI Chief General Manager Yogesh Dayal as the additional director of the RBL Bank for two years from December 24 this year to December 23, 2023

The Reserve Bank of India (RBI) has said that depositors and stakeholders associated with RBL Bank need to steer clear of any speculative reports while adding that the bank’s financial health is stable. “The Reserve Bank would like to state that the bank is well capitalized and the financial position of the bank remains satisfactory,” the Central bank said in an official communiqué dated December 27.

The central bank’s statement also read, “As such, there is no need for depositors and stakeholders to react to the speculative reports. The bank’s financial health remains stable.” It further cited half-yearly audited reports as on September 30 this year and said that the bank has “maintained a comfortable Capital Adequacy Ratio of 16.33 per cent and Provision Coverage Ratio of 76.6 per cent.”

The statement maintained that RBL Bank’s Liquidity Coverage Ratio (LCR) of the bank is 153 per cent as on December 24 against regulatory requirement of 100 per cent. The RBI, however, said that appointment of Additional Director in the bank has been done in keeping with Section 36AB of the Banking Regulation Act, 1949 and also when it is believed that the board of a bank needs closer support from the central bank in regulatory or supervisory matters.

The Reserve Bank appointed RBI Chief General Manager Yogesh Dayal as the additional director of the RBL Bank for two years from December 24 this year to December 23, 2023. “This is to inform you that the Reserve Bank of India, vide its letter no DOR. GOV. No. S 3096/ 08.49. 001/ 2021-22 dated December 24, 2021, informed that in exercise of powers conferred under Section 36AB of the Banking Regulation Act, 1949, appointed Yogesh K Dayal, Chief General Manager as an Additional Director on the Board of the Bank for a period of two years w.e.f. December 24, 2021 till December 23, 2023 or till further orders, whichever is earlier,” the RBL Bank said in an exchange filing.

Besides appointment of Yogesh Dayal as RBL Bank’s additional director, the 12-year-old tenure of Vishwavir Ahuja at the bank also came to an abrupt end as he decided to proceed on leave and the board of the bank appointed Rajeev Ahuja as an interim MD and CEO. Shares of RBL Bank went down by 17 per cent to Rs 145.3 on the BSE, with many citing the sudden exit of Vishwavir Ahuja has a possible reason that could have spooked investors.

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