Rajeev Ahuja, new managing director and acting CEO of private sector lender RBL Bank, said on Sunday that the bank and its management had the full support of the Reserve Bank of India (RBI) after the RBI nominated its candidate to the board of directors and general manager and long term CEO. Vishwavir Ahuja went on leave six months before the end of his term.
The exit of the bank’s managing director came after the RBI on Friday appointed Yogesh K Dayal, chief managing director, RBI, as an additional director to the bank’s board of directors for a period of two years until December 23, 2023 or until further notice, whichever is earlier. The board of directors appointed Rajeev Ahuja, currently executive director, as the bank’s managing director and interim CEO with immediate effect.
“I can assure you that the bank and its management have the full support of the RBI. I was the successor the board chose yesterday, and the RBI candidate approved it, â€Rajeev Ahuja said on a conference call Sunday. “These developments are not due to concerns about advances, the quality of assets and the level of the bank’s deposits. We want to allay any concerns you may have in this regard. The bank has the full support of the RBI, â€he said.
“The board has elevated an existing member of the management team to the role of managing director and interim CEO, which should allay concerns about the strategy and proper functioning of the bank as well as the strength of the franchise.” overall. The bank’s management team is also fully engaged with Rajeev Ahuja to move the bank forward, â€the bank said. RBL Bank said the bank’s finances remain strong.
“I don’t want to anticipate why Vishwavir Ahuja went on leave six months before the end of his term,” said the new CEO. On Saturday, the council accepted Vishwavir Ahuja’s request to go on leave. The banking unions have expressed concern about the development of RBL Bank (formerly Ratnakar Bank). “In the context of the problems faced by private banks like Yes Bank and Lakshmi Vilas Bank last year, we urge you to immediately intervene in the interest of the depositors of this private sector bank and consider the necessary measures. including the merger of this bank with a public sector bank, â€CH Venkatachalam, secretary general of the Bank Employees Association of India, said in a letter to the Ministry of Finance.
Earlier this year, RBL sought approval from the RBI to appoint Ahuja for another three-year term as head of the bank. However, the regulator had authorized RBL to extend its mandate by one year from June 30, 2021.
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