Shares RBL Bank fell on the stock markets on Monday
Shares of RBL Bank fell about 23 percent on the National Stock Exchange (NSE) Monday, reaching an intra-day low of Rs 85.20 before closing at Rs 87.60 per share. The shares had started trading at Rs 102.25 earlier in the day.
Analysts blame the dismal performance of RBL Bank’s stocks on the management change announced by the lender on June 11.
Shares of the bank plunged on Monday, the first day of trading after the Reserve Bank of India (RBI) approved the appointment of R Subramaniakumar as Managing Director and Chief Executive Officer (MD & CEO) of RBL Bank.
“The RBI has approved the appointment of Mr. R Subramaniakumar as general manager and CEO of the bank for a period of three years from the date of his acquisition,” RBL Bank had said in an exchange request on Saturday, June 11, 2022. †
Previously, Mr. Subramaniakumar was the former general manager and general manager of the state-run Indian Overseas Bank. He was also appointed as administrator of Dewan Housing Finance Co Ltd after the board of the mortgage lender was replaced.
On December 25, 2021, RBI announced its decision to appoint its official, Communications Department Head Yogesh Dayal, as a board member at RBL bank.
Shortly after the announcement of RBI, RBL Bank informed the exchanges on the same day that its former MD & CEO Vishwavir Ahuja had taken immediate leave.
The bank then appointed executive director Rajeev Ahuja as the bank’s interim MD and CEO.
“The (recent) developments are not because of asset quality, problems with advances. The bank has the full support of the RBI,” Rajeev Ahuja had told reporters, two days after he took over the interim head of the bank. .
