RBL Bank’s shares fell by around 23 per cent on the National Stock Exchange (NSE) on Monday, hitting an intra-day low of Rs 85.20, before ending Rs 87.60 per share. The shares had started trading at Rs 102.25 earlier during the day.
Analysts blamed the dismal performance of RBL Bank’s shares on the bourses to the management change announced by the lender on June 11.
The shares of the bank tanked on Monday, which was the first day of trading after the Reserve Bank of India (RBI) approved R Subramaniakumar’s appointment as the Managing Director and Chief Executive Officer (MD & CEO) of RBL Bank.
“The RBI has approved the appointment of Mr R Subramaniakumar as Managing Director & CEO of the Bank for a period of three years with effect from date of his taking charge,” RBL Bank had said in an exchange filing on Saturday, June 11, 2022.
Earlier, Mr Subramaniakumar was the former managing director and chief executive director of 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 He was also appointed as the administrator of Dewan Housing Finance Co Ltd after the mortgage financier’s board was superseded.
On December 25, 2021 RBI had announced its decision to appoint its official, Communication Department Head Yogesh Dayal, as a board member at RBL bank.
Soon after RBI’s announcement, RBL Bank informed the exchanges on the same day that its former MD & CEO Vishwavir Ahuja had gone on leave with immediate effect.
The bank then named Executive Director Rajeev Ahuja as the interim MD and CEO of the bank.
“The (recent) developments are not on account of asset quality, advances issues. The bank has the full support of the RBI,” Rajeev Ahuja had told reporters, two days after taking over as the interim chief of the bank.