Inside the change of guard at RBL Bank
The lender has reposed faith in a public sector veteran to bring its retail operations and governance standards up to scratch. The markets aren’t convinced yet.
Why read this story?
Editor's note: On Monday, when shares of RBL Bank fell 22%, there was a sense of deja vu. Back in December 2021, when Vishwavir Ahuja, then CEO and managing director of the bank, “proceeded on leave with immediate effect”, the financial markets had reacted in similar fashion. Vishwavir Ahuja’s exit was preceded by a rare intervention by the Reserve Bank of India, one that saw the central bank appoint one of its chief general managers, Yogesh Dayal, to the board of the bank. For the markets, this brought back memories of the collapse of Yes Bank, and that is why, when they opened on 27 December 2021, RBL Bank’s shares fell 18.3%, despite assurances by interim CEO Rajeev Ahuja on the stability of the bank over the preceding weekend. To stem the slide and allay investors’ fears, RBI issued a release stating that all was well at the bank. That said, its intervention wasn’t sudden. It came after almost 20 months of back and forth with Vishwavir Ahuja on key issues pertaining to the health of RBL Bank. Six months on, with …
More in Business
You may also like
Why Kotak Mahindra Bank is in a hurry to swallow IDBI
As growth flatlines, acquisition of the government-controlled lender may be the only way out for the Uday Kotak-promoted bank to stay relevant.
Ujjivan has to change its DNA for a universal banking licence
Cutting its decades-old reliance on microfinance loans is the only way the SFB can meet the regulator’s conditions for transitioning to a full-fledged bank
From India and Pakistan, two new banks for the Emirates
The acquisition of RBL and First Women Bank, Amazon Now in the Emirates and other updates from the week.