RBI to no longer have a director on RBL Bank’s board

The Reserve Bank of India will no longer have a director on RBL Bank’s board as the central bank-appointed additional director Yogesh Dayal concluded his two-year term.

“The Board has placed on record its deep appreciation for the invaluable contribution made by Mr. Yogesh Dayal during his tenure as an Additional Director (appointed by RBI) on the Board of the Bank,” RBL Bank said in a stock exchange filing.

RBI chief general manager Dayal’s appointment to RBL’s board back in December 2021 had come amid plethora of rumors surrounding the financial position of the private lender, which the RBI had however denied and said RBL Bank’s financial health was stable and it was well capitalised.

However, its then Managing Director and Chief Executive Officer Vishwavir Ahuja had made a sudden exit on medical leave and RBI subsequently appointed Dayal as additional director on the bank’s board by the RBI.

The private sector bank had announced on December 30, 2021, that the Reserve Bank had sanctioned Rajeev Ahuja’s appointment as the interim MD and CEO for three months starting from December 25, 2021, or until the appointment of a permanent MD and CEO.

Although the RBI has previously made board appointments for banks, these instances typically occurred with banks facing difficulties, like YES Bank, Ujjivan Bank and Dhanlaxmi Bank.In June 2022, RBL Bank had appointed veteran banker R Subramaniakumar as its new managing director and chief executive officer.