Investors Approach RBI to Buy 10% Stake in RBL Bank: Report

The report said that the investors approached RBI with proposals to buy a 10 per cent stake in the bank. Earlier on Saturday, the Reserve Bank of India appointed Yogesh Dayal as an Additional Director on the Board of the RBL Bank.

Mumbai: A number of well-known investors including Rakesh Jhunjhunwala and D-Mart’s founder RK Damani has reportedly lined up to buy a stake in RBL Bank and also sought Reserve Bank’s permission, said a CNBC TV 18 report. The media report said that the investors approached RBI with proposals to buy a 10 per cent stake in the bank and RBI is looking at the request. Earlier on Saturday, the Reserve Bank of India appointed Yogesh Dayal as an Additional Director on the Board of the RBL Bank.

And, this move by the ace investors was reported just a day after the appointment of RBI chief Dayal as additional director on RBL’s board, and its managing director Vishwavir Ahuja proceeded on leave. Neither Jhunjhunwala nor Damani have made any statement regarding their request to RBI. On Friday, RBL Bank’s stock ended the session at Rs 172.50, a 3.06 per cent decline. The lender at present has a market capitalisation of Rs 10,340 crore.

Meanwhile, the Board of the RBL Bank accepted the request of Vishwavir Ahuja, CEO of the bank to proceed on medical leave and appointed Rajeev Ahuja, the existing Executive Director of the bank as the Interim Managing Director and CEO subject to regulatory and other approvals. In a statement on Sunday, the bank said: “We would like to reiterate that these developments are not in any manner a reflection on the fundamentals of the Bank.”

“As we have been communicating to all of you the business momentum and financial performance trajectory have been improving since the second quarter of this financial year as we recovered from the effects of the pandemic.” It said that current management team led by Rajeev Ahuja has full support from RBI. “We have absorbed the challenges on our asset quality which were largely due to the pandemic.”

“Capital adequacy was 16.3 per cent and will be in a similar range this quarter. Liquidity Coverage ratios have been well above regulatory requirements – it was 155 per cent for the September quarter.”

The statement further said slippages had peaked in Q2 and will be improving this quarter and next as guided previously. “The NPA position of the bank will also be on an improving trend. We want to point out here that we have been upfront and transparent on any challenges that we have faced in our various business segments in the past.”

The statement added that the Board has elevated an existing member of the management team to the interim MD and CEO role which should allay concerns on the strategy and smooth functioning of the bank as well as the strength of the overall franchise. “These developments are not on account of any concern on advances, asset quality and deposits level of the bank. The bank has the full support of the RBI.”

(Inputs from Agencies)