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Rakesh Jhunjhunwala, RK Damani approach RBI with request to buy 10% stake in RBL Bank

The central bank is in the process of examining the request, CNBC TV 18 reported.

December 27, 2021 / 07:51 AM IST

Ace investor Rakesh Jhunhunwala and D-Mart founder RK Damani have approached the Reserve Bank of India (RBI) with the request to buy 10 percent stake in private lender RBL Bank, CNBC TV 18 reported on December 26.

The move by Jhunjhunwala and Damani was made prior to the RBI action against the bank.

The central bank is in the process of examining the request, the news channel said.

Jhunjhunwala and Damani were yet to react to the CNBC TV 18 report at the time of writing this report.

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The report comes a day after RBL Bank made two major disclosures - appointment of RBI chief general manager Yogesh Dayal as additional director on its board; and the bank's long's term managing director & CEO Vishwavir Ahuja proceeding on leave with immediate effect.

RBL, in a regulatory filing on December 25, noted that it "welcomed" the appointment of Dayal, a veteran central banker with over 25 years of experience, as a member of its board.

On the announcement related to Ahuja's leave, the bank said that his vacated charge would be assumed with immediate effect by Rajeev Ahuja, the incumbent executive director who has been appointed as the "interim MD & CEO".

Also Read | RBL Bank's interim CEO Rajeev Ahuja says bank has full support of RBI, asset quality issues addressed

Along with these announcements, RBL apparently attempted to calm investors by claiming that its business and financial trajectory continues to be on improving trend.

"The financials of the bank remain robust with healthy capital adequacy of 16.3 percent, high levels of liquidity as reflected through liquidity coverage ratio of 155 percent, stable net NPA of 2.14 percent, credit deposit ratio of 74.1 percent and leverage ratio of 10.0%, for the quarter ended September 30, 2021," it said.

Rajeev Ahuja, in a press briefing earlier on December 26, said the bank's management is being supported by the RBI. The recent developments, which includes the change in leadership and appointment of Dayal on the bank's board, has no links to the lender's financial performance, he said.

“Frankly, in terms of change of leadership, it (RBI appointing additional director on the board) has nothing to do with the developments within the bank. All business fundamentals are intact,” Ahuja said.

The bank is well capitalised and does not have any immediate capital requirements, the new RBL CEO said, adding the lender will continue with its investments.

The bank does not need capital for the next eight to 12 months, Ahuja said. "We are going to accelerate many of our investments in technology," he further noted.
Moneycontrol News
first published: Dec 26, 2021 08:02 pm
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