The Reserve Bank of India has appointed Yogesh Dayal as an additional director on the board of RBL Bank. The private sector lender’s Managing Director and CEO Vishwavir Ahuja has proceeded on leave with immediate effect.

“…the Reserve Bank of India vide its letter …dated December 24, 2021, informed that in exercise of powers conferred under Section 36 AB of the Banking Regulation Act, 1949, appointed Yogesh K Dayal, Chief General Manager, Reserve Bank of India as an Additional Director on the Board of the Bank,” RBL Bank said in a stock exchange filing on Saturday.

The appointment is for a period of two years, effective December 24, 2021 till December 23, 2023 or till further orders, whichever is earlier, it further said.

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“The Board of Directors of the Bank at its meeting held today -- December 25, 2021 accepted the request of Vishwavir Ahuja to proceed on leave with immediate effect,” it said in another stock exchange filing.

The board has appointed Rajeev Ahuja (currently the Executive Director) as interim MD and CEO of the bank with immediate effect, subject to the regulatory and other approvals.

While RBL Bank welcomed the appointment of Dayal to the board, it stressed that it is well placed to execute its business plan and strategy and is doing well post the second wave of the Covid pandemic.

Dayal is a career central banker and is currently Chief General Manager in charge of the Department of Communication, RBI.

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“The business and financial trajectory continues to be on improving trend, post absorbing the challenges due to Covid 2 pandemic,” it said, adding that the financials of the bank remain robust.

It has highlighted its healthy capital adequacy of 16.3 per cent, high levels of liquidity as reflected through liquidity coverage ratio of 155 per cent, stable net NPA of 2.14 per cent, credit deposit ratio of 74.1 per cent and leverage ratio of 10 per cent for the quarter ended September 30, 2021.

In addition, the bank has also improved the granularity of its deposits and advances, it further said.

For the quarter ended September 30, 2021, RBL Bank reported a 78.6 per cent drop in its standalone net profit to Rs 30.8 crore fiscal due to higher provisions and lower interest income.

Under Section 36AB of the Act, the RBI can appoint additional directors if it is of the opinion that it is necessary to do so in the interest of banking policy or in the public interest or in the interests of the banking company or its depositors.