Shares of much-in-talks private lender RBL Bank Ltd (NS: RATB) plunged 8.35% to Rs 132.25 at 12:45 p.m. Thursday, after falling nearly 10% early in the session on negative news.
According to a press report, the reason for the central bank’s interference with senior management at RBL Bank was a loan of Rs 300 crore which was written off within 7 months of the sanction.
This emerged as the main reason for the central bank’s intervention. According to the report, the loan was made as part of the consortium loan in 2018, and RBI has sought details of the company’s exposure in recent months from RBL Bank’s risk management team, cited CNBC TV-18.
As a result, RBI had to replace the senior management of the lender and appointed its chief managing director, Yogesh K Dayal, as an additional director of the bank’s board invested and capitalized.
At around 10:45 a.m. Thursday, the stock plunged nearly 10% to Rs 130.9, hitting a new 52 week low at Rs 130.5.
The banking stock has declined almost 26% this week, after falling almost 23% on Monday.