RBI says RBL Bank’s financial position ‘satisfactory’

MUMBAI: The Reserve Bank of India on Monday said that RBL Bank is well capitalised and its financial position remains “satisfactory”, amid speculations relating to the private sector lender in certain quarters in wake of recent events surrounding the bank.

In a statement, the Reserve Bank of India (RBI) also said there is no need for depositors and other stakeholders to react to speculative reports.

The bank’s financial health remains stable, it said.

The statement from the RBI comes amid RBL Bank’s Vishawvir Ahuja stepping down as MD and CEO of the bank, and the lender appointing Rajeev Ahuja as the interim Managing Director and Chief Executive Officer of the bank with immediate effect.

The Reserve Bank of India has also appointed its Chief General Manager Yogesh K Dayal as an additional director on the board of RBL Bank.

“The Reserve Bank would like to state that 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% and Provision Coverage Ratio of 76.6%,” the central bank said.

It also said that the Liquidity Coverage Ratio (LCR) of the bank is 153 per cent as on December 24, 2021 as against regulatory requirement of 100%.

“Further, it is clarified that appointment of Additional Director or Directors 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,” the RBI added.