RBL Bank Shares Fall 21% Today: What Led to this Drop and What’s Next? Details Here

Policybazaar Plunges 10% on CEO Yashish Dahiya’s Stake Sale Plan

RBL Bank announced the appointment of veteran banker R Subramaniakumar as its new MD & CEO after which the shares saw a fall of over 21 per cent. What should investors do now?

  • Last Updated:June 13, 2022, 14:48 IST

The stock price of RBL Bank hit a record low of Rs 89.30 as it tumbled 21.39 per cent on the BSE in Monday’s intra-day trade after the Reserve Bank of India (RBI) approved R Subramaniakumar’s appointment as the managing director & chief executive officer (MD & CEO) of the private sector lender. “…A meeting of the Board of Directors will be convened to approve the appointment of Mr. R Subramaniakumar as an Additional Director and as the Managing Director & CEO of the Bank and the approval of the shareholders shall be obtained thereafter,” the Bank said in its stock exchange filing on Saturday.

Previously, Subramaniakumar was the former managing director and chief executive director of the state-run Indian Overseas Bank. He was also appointed as the administrator of Dewan Housing Finance Co Ltd after the mortgage financier’s board was superseded. “Given his profile, he comes across as a troubleshooter with decent success at IOB/DHFL. However, his selection as MD & CEO of a private bank, despite interim management’s assurance on asset quality and plans to reorient the bank on the path of growth, is a little surprising,” said analysts at brokerage Emkay in a note.

Last year in December, RBL’s then MD & CEO Vishwavir Ahuja went on indefinite leave. Executive director Rajeev Ahuja was appointed as the interim Managing Director & Chief Executive Officer. Ahuja’s departure had come after the RBI appointed one of RBL’s chief general managers, Yogesh Dayal, on the lender’s board as an additional director.

What Investors Should Know?

According to analysts at Kotak Institutional Equities, RBL Bank has addressed one concern, however, issues on the strategy of the bank given its reliance on high-yielding product segments, employee retention, and recovery in return ratios and growth remain unclear.

Read all the Latest News , Breaking News , watch Top Videos and Live TV here.

Source link

%d bloggers like this: