Financial Position Satisfactory, Depositors Needn’t React To Speculative Reports Around RBL Bank Claims RBI
New Delhi, Dec 27: Amid concerns around financial health of RBL Bank, banking sector regulator Reserve Bank of India (RBI) on Monday said that the bank is well capitalised and the financial position of the bank remains satisfactory.
The RBI stated that there is no need for depositors and other stakeholders to react to the speculative reports. It also underscored that the bank’s financial health remains stable.
“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,” the central bank said in a statement.
The RBL Bank shares crashed about 13% on the BSE to Rs 149.45 a piece on Monday around 1PM, days after a sequence of events which suggested all is not well with the lender.
RBI on Saturday appointed Yogesh K Dayal as an Additional Director on the Board of the Bank for a period of two years till December 23, 2023 or till further orders, whichever is earlier.
Subsequently, the Board of Directors of the Bank accepted the request of Vishwavir Ahuja to proceed on leave with immediate effect. It appointed Rajeev Ahuja (currently the Executive Director) as interim Managing Director & Chief Executive Officer of the Bank with immediate effect, subject to the regulatory and other approvals.
The RBI appeared to be allaying investor fears surrounding the RBL Bank today.
“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,” the RBI said.
“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,” it further said.
