The company’s board of directors accepted Vishwavir Ahuja’s request for immediate release.
RBL Bank shares hit a 52-week low at Rs 138, stuck at 20% circuit low in early trading on December 27 after the Reserve Bank of India appointed Yogesh K Dayal as director of the Board of Directors of RBL Bank. Bank. Bank of India has appointed Yogesh K Dayal, Managing Director, Reserve Bank of India as an additional director to the board of directors of RBL Bank for a period of two years from December 24, 2021 to December 23, 2023 or until further orders, according to first, ”the bank said in its press release.
In another development, the company’s board of directors at its meeting held on December 25, 2021 accepted Vishwavir Ahuja’s request to proceed on leave with immediate effect. The Board of Directors has appointed Rajeev Ahuja (currently Chief Executive Officer) as Acting Chief Executive Officer and Chief Executive Officer of the bank with immediate effect, subject to approval.
The other conditions of his appointment, such as his salary, would remain unchanged. CNBCTV18 reported on December 26, ahead of the RBI’s action, that leading investor Rakesh JhunJhunwala and DMart founder RK Damani had approached the RBI with a request to buy a 10 percent stake in RBL Bank.
However, today Jhunjhunwala denied CNBCTV18 any interest in buying a stake in the lender. The central bank is reviewing the request, the news channel said. Damani has yet to react to the CNBC-TV18 report at the time of writing.
Here’s what brokers have to say about the stock and the company:
Motilal Oswal Current developments have raised concerns about the bank’s ability to maintain a turnaround in operational performance, while also raising concerns about stocks. similar from the regulator medium-sized banks, where operational performance was sub-optimal. We have therefore checked our rating and remain vigilant for new developments and await more clarity on the results of 3QFY22.
CLSA In a surprise gesture, the RBI appointed an additional director to the board of directors of RBL. in trouble. This decision will cause uncertainty in the short term. The next 6 months will be crucial to validate the recurrence of management performance. We maintain a rating of “outperformance” and reduce the target to Rs 200 against Rs 230 per share.
ICICI Securities Down Evaluation on “Sell” and cut the target to 131 RS by RS 181. The uncertainty ends as the RBI induces an additional administrator, while MD and CEO have trampled At 10:01 am, RBL Bank was trading at Rs 138, down from Rs 34.50, or 20% of BSE.