RBL bank shares drop

RBL Bank Ltd.’s stock fell to its lowest intraday level in history as investors were concerned after the Reserve Bank of India appointed an additional director to the lender’s board of directors and its CEO left on “medical leave.”

While RBL Bank did not provide any explanation for the banking regulator’s decision, it did reassure investors about its asset quality and earnings guidance. Still, other analysts are skeptical, claiming that the RBI’s decision is symptomatic of “severe problems” and raises questions about the lender’s management’s stability and continuity.

RBL Bank’s stock fell like 25% to a 52-week low of Rs 130.2 per share at 10:30 a.m. on Monday.

On December 25, the RBI named Yogesh Dayal, the central bank’s principal general manager in charge of communications, as an additional director on RBL Bank’s board for two years or until further orders. Simultaneously, RBL Bank announced that its Managing Director and Chief Executive Officer Vishwavir Ahuja steps down with immediate effect, Executive Director Rajeev Ahuja taking over as interim MD and CEO.

Vishwavir Ahuja had secured board permission for a three-year extension as MD and CEO, but the RBI only approved a one-year extension. His term was scheduled to expire in June 2022.

The watchdog, according to Rajeev Ahuja, has high confidence in the bank’s managerial and financial condition. He stated the December quarter’s result is projected to be stronger than that of the previous three months in a conference call with reporters on Sunday.

He also said the bank was uninformed of any leadership inquiries affecting its clients.

See also  Stock market nifty Realty index falls 0.73%

After the RBI issued a statement advising depositors and other stakeholders not to react to speculative speculations, the shares recovered some of their losses. The bank is “fully capitalized,” according to the RBI, and its financial status is “satisfactory.”

According to the banking regulator, the RBI appointed an additional director when the lender’s board of directors required assistance in regulatory and supervisory problems. The financial health of RBL Bank is stable.’

As of 1 p.m., the stock had lost more than 13% of its value. According to Bloomberg data, 14 analysts have a ‘buy’ rating for the private bank, eight have a ‘hold’ recommendation, and six have sell suggestions. A 45 percent increase gets predicted by the 12-month consensus price target.

The stock’s Relative Strength Index was 25, indicating that it got oversold. Its trading volume for this time of day was 2.6 times the 30-day average volume.

Keep connected with us for more such updates!!

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

Leave a Reply

Your email address will not be published.