RBI to no longer have director on RBL Bank board as additional director’s term ends

Reserve Bank of India will no longer have a director on the board of RBL Bank following the end of term of additional director Yogesh K Dayal, the private sector notified the exchanges.

The central bank had in December 2021 had appointed Dayal, Chief General Manager of RBI, as an additional director on the board of the bank for two years till December 23, 2023 or till further orders, whichever was earlier.

Dayal’s appointment had come amid the sudden exit of Vishwavir Ahuja as MD and CEO in December 2021 due to medical reasons. Executive Director Rajeev Ahuja  then took over as interim MD and CEO, following which the RBI approved the appointment of R Subramaniakumar as the head in July 2022 for a period of three years.

The management change had led to some concerns regarding the health of the private sector bank, with reports then suggesting regulatory concerns regarding the top management and the high share of riskier unsecured loans in the bank’s portfolio. However, the central bank had later clarified that the bank’s financial health remains stable.

The lender posted a net profit of ₹294 crore for Q2 FY24, up 46 per cent y-o-y and 2 per cent sequentially. Gross NPA ratio stood at 3.12 per cent and net NPA ratio at 0.78 per cent as of September 2023.