The Reserve Bank of India on Monday issued a statement stating that 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 said the bank is well capitalised and the financial position of the bank remains satisfactory. 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, according to the RBI.
RBI said in its statement, 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.
"As such, there is no need for depositors and other stakeholders to react to the speculative reports. The bank’s financial health remains stable," the statement said.
RBL Bank shares fall
The shares of the private lender fell sharply to hit a 52-week low after hitting a lower circuit of 20 per cent on the stock exchanges.
At 2.20 PM, shares declined Rs 31.05 or 17.96 percent to Rs 141.85 on the NSE.
On Sunday, RBL Bank's interim chief executive and managing director Rajeev Ahuja on Sunday sought to allay concerns around the health of the private sector lender, stressing that the events over the weekend were not linked to quality of advances or asset quality. Ahuja, an executive director with the lender who was elevated by the board after his predecessor Vishwavir Ahuja went on leave following the appointment of an additional director by the RBI on the bank, asserted that the bank will post better profits in December quarter than the preceding September quarter.
He said the bank will stick to all the targets spelled out at the earning call in September, but conceded that microfinance lending is an area which requires more attention.
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