Central bank move on India’s RBL Bank causes jitters

The Reserve Bank of India’s weekend intervention in RBL Bank has triggered rumors regarding the health of the privately-owned lender.

The central bank on December 25 appointed its own staffer, Chief General Manager Yogesh Dayal, as an additional director on RBL Bank’s board for a two-year term. At the same time, RBL Bank said its Chief Executive Officer Vishwavir Ahuja will go on leave and Executive Director Rajeev Ahuja will take over as interim chief.

While RBL Bank didn’t offer any clarity behind the banking regulator’s move, Rajeev Ahuja tried to reassure customers and investors by claiming that the central bank has full faith in the bank’s management and its financial position. He also assured the December quarter is expected to be better than the preceding one.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *