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RBI allays concerns on RBL Bank and its financial health

The Reserve Bank of India on Monday allayed concerns regarding the financial health of private lender adding that it’s financial position remains satisfactory.

“There has been speculation relating to the RBL Bank Ltd. in certain quarters which appears to be arising from recent events surrounding the bank,” RBI said in a statement. “We would like to state that the bank is well capitalised and the financial position of the bank remains satisfactory.”

The regulator also clarified that appointment of additional director in private banks is undertaken as and when it is felt that the board needs closer support in regulatory and 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 RBI stated.

On Saturday the private lender said in a regulatory filing that it’s Managing Director and Chief Executive Officer Vishwavir Ahuja has proceeded on leave with immediate effect. Ahuja’s exit came close on the heels of another important announcement. The banking regulator had decided to appoint its chief general manager Yogesh K Dayal as an additional director on the RBL board, for a period of two years with immediate effect.

As on September, the private lender had a capital adequacy ratio of 16.33% and a provision coverage ratio of 76.6%. The liquidity coverage ratio of the bank is 153% as on December 24, 2021 as against regulatory requirement of 100%

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