RBI Says That RBL Bank's Financial Position Is 'Satisfactory', In An Effort To Assure Depositors and Stakeholders
Mumbai, Dec 27 (PTI) 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 & 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 per cent and Provision Coverage Ratio of 76.6 per cent,' 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 per cent.
'Further, it is clarified that appointment of Additional Director/s 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.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.