The Board of Directors of the Bank at its meeting held yesterday i.e December 25, 2021, accepted the request of Mr. Vishwavir Ahuja to proceed on leave with immediate effect, the bank said in a filing.

The Board appointed Rajeev Ahuja as interim Managing Director & Chief Executive Officer of the Bank with immediate effect, subject to the regulatory and other approvals.

“We wish to mention that the bank is well placed to execute its business plan and strategy, as communicated during our earnings call dated October 28, 2021. The business and financial trajectory continues to be on improving trend, post absorbing the challenges due to Covid 2 pandemic,” the bank said.

The financials of the bank remain robust with a 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 a leverage ratio of 10 percent, for the quarter ended September 30, 2021, it said.

In addition, the bank has also improved the granularity of its deposits and advances, RBL Bank said.

Bank employee unions’ umbrella body AIBEA had written a letter to Finance Minister Nirmala Sitharaman

Bank employee unions’ umbrella body AIBEA had written a letter to Finance Minister Nirmala Sitharaman expressing concern that everything was not right at RBL Bank and it was going the Yes Bank and Lakshmi Vilas Bank way.

“We are worried and concerned about the developments that are taking place in the affairs of RBL Bank Ltd, the Kolhapur-based private bank.”

“The sequence of events leading to the sudden exit of Vishwavir Ahuja along with induction of Dayal from RBI on the board as an additional member indicates that everything is not ok with the bank,” AIBEA said in its letter to the Finance Minister.

Mr. Vishwavir had been heading the private sector bank for the last decade.

While the board recommended his continuation, it is learned that RBI has agreed only for a short term up to 2022, AIBEA said further.

There are also reports that the bank has been overindulging in retail credit, micro-financing, and credit cards and consequently has burnt its finger resulting in weakening the financials of the bank, it said.

“In the background of the problems encountered by private banks like Yes Bank and Lakshmi Vilas Bank last year, we urge upon you to immediately intervene in the matter in the interest of the depositors of this private sector bank and consider necessary steps including the merger of this bank with a public sector bank,” AIBEA’s letter to Ms. Sitharaman urged.