As per half yearly audited results as on Sept 2021, RBL Bank has maintained a comfortable Capital Adequacy Ratio of 16.33 per cent and Provision Coverage Ratio of 76.6 per cent, RBI said.
Reacting to the speculations relating to the RBL Bank Ltd in certain quarters which appears to be arising from recent events surrounding the bank, the Reserve Bank of India (RBI) on Monday said that RBL Bank is well capitalised and its financial position remains satisfactory.
As per half yearly audited results as on September 30, 2021, RBL Bank has maintained a comfortable Capital Adequacy Ratio of 16.33 per cent and Provision Coverage Ratio of 76.6 per cent, RBI said in a statement.
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, the statement said.
RBI added that there is no need for depositors and other stakeholders to react to the speculative reports. RBI bank’s financial health remains stable.
RBI’s statement came after RBL Bank's Vishawvir Ahuja resigned as MD & CEO of the bank, and the private lender appointed Rajeev Ahuja as the interim Managing Director and Chief Executive Officer of the bank with immediate effect.
RBI has also appointed its Chief General Manager Yogesh K Dayal as an additional director on the board of RBL Bank, accorng to PTI report.
“Further, it is clarified that the 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 statement added.
On 26 December, RBL Bank's interim chief executive and managing director Rajeev Ahuja on Sunday sought to allay concerns around the health of the private sector lender, stressing that the events over the weekend are not linked to the quality of advances or asset quality, reported PTI.
Rajeev, an executive director with the lender who was elevated by the board after his predecessor Vishwavir Ahuja went on leave following the appointment of an additional director by the RBI on the bank, asserted that the bank will post better profits in the December quarter than the preceding September quarter.
He said the bank will stick to all the targets spelled out at the earnings call in September, but conceded that microfinance lending is an area that requires more attention.