RBL Bank Board No Longer Having a Director From RBI
The Reserve Bank of India(RBI) will no longer be having a director on RBL Bank's board. RBI had appointed Yogesh Dayal as additional director who is now going to conclude his two- year term.
"The Board has placed on record its deep appreciation for the invaluable contribution made by Yogesh Dayal during his tenure as an Additional Director (appointed by RBI) on the Board of the Bank," RBL Bank said in a stock exchange filing.
RBI’s chief general manager Dayal's appointment to the board of RBL in December 2021 was surrounded by a heap of rumors where stakeholders questioned the financial position of the private lender, which the RBI had however denied and said RBL Bank's financial health is quite stable and it is well capitalised.
A sudden exit of Chief Executive Officer and Managing Director Vishwavir Ahuja by way of medical leave and RBI’s subsequent appointment of Dayal as additional director on the bank's board by the RBI was also seen with suspicion.
The private sector bank had declared on 30 December 2021, that the RBI had sanctioned Rajeev Ahuja's appointment as an interim MD and CEO for three months starting from 25 December 2021 or until there is an appointment of a permanent MD and CEO.
Although, RBI making appointments in board is not new and RBI has previously made board appointments for banks which typically occurred with banks facing difficulties like Ujjivan Bank, YES Bank and Dhanlaxmi Bank.
RBL Bank had appointed veteran banker R Subramaniakumar as its new managing director(MD) and chief executive officer(CEO) in June 2022.
