Economy

The RBI assures depositors and stakeholders that RBL’s financial position is satisfactory

Despite worry in some quarters about RBL Bank in the aftermath of recent events, the Reserve Bank of India declared on Monday that the private sector lender is well capitalised and its financial condition is “acceptable.”

Despite worry in some quarters about RBL Bank in the aftermath of recent events, the Reserve Bank of India declared on Monday that the private sector lender is well capitalised and its financial condition is “acceptable.”

Depositors and other stakeholders do not obliged to react to speculative reports, according to the Reserve Bank of India (RBI).

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

RBL Bank’s Vishawvir Ahuja stepped down as MD and CEO, and Rajeev Ahuja was named temporary Managing Director and Chief Executive Officer with immediate effect, according to the RBI.

Yogesh K Dayal, the Chief General Manager of the Reserve Bank of India, has been named as an extra director on the board of RBL Bank.

RBI Says, Assuring Depositors and Stakeholders

“The Reserve Bank wants to stress that the bank is well capitalised and has a strong financial position.” According to half-yearly audited statistics, as of September 30, 2021, the bank had a satisfactory Capital Adequacy Ratio of 16.33 percent and a Provision Coverage Ratio of 76.6 percent.

As of December 24, 2021, the bank’s Liquidity Coverage Ratio (LCR) was 153 percent, compared to the statutory threshold of 100 percent.

“Furthermore, it is clarified that Additional Director/s in private banks are appointed under Section 36AB of the Banking Regulation Act, 1949 as and when it is judged that the board requires closer regulatory/supervisory support,” the RBI stated.

image courtesy of rblbank.com

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