RBL Bank Shares Tumble 20 Per Cent, Investors Approach RBI To Buy 10 Per Cent Stake

RBL Bank Latest News: The shares of RBL Bank hit the lower circuit on Monday as shares fell around 22 per cent from the previous close of Rs 172.5. The shares were trading at Rs 135.30, as of 10:15 AM.

New Delhi: RBL Bank shares plunged as high as 20 per cent, on Monday, after the CEO of the bank Vishwavir Ahuja proceeded on a ‘medical leave’. According to media reports, RBI appointed Rajeev Ahuja as the new CEO and interim Managing Director of the bank. Several well-known investors approached RBI to allow them to buy a 10 per cent stake in the bank.

New MD Ahuja said that the developments are not on account of any concern on advances, asset quality and deposits level of the bank. He said, “The bank has the full support of the RBI.” On the rising NPAs and poor financial health of the bank, a statement by the bank read, “We have absorbed the challenges on our asset quality which were largely due to the pandemic.”

Shares Fall More Than 20 Per Cent

The shares of RBL Bank hit the lower circuit on Monday as shares fell around 22 per cent from the previous close of Rs 172.5. The shares were trading at Rs 135.30, as of 10:15 AM, according to data on BSE’s website. The share opened at Rs 155.25 on Monday, 10 per cent below the previous close.

According to Bloomberg’s report, this is the highest intraday fall since March 23, 2020.

Investors Approach RBI

Investors including Rakesh Jhunjhunwala and RK Damani approached the Reserve Bank Of India to buy a 10 per cent stake in the bank, according to CNBC TV18. RBI is, presently, looking at the proposal.