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Here’s Why RBI Intervened In RBL Bank’s Top Mmgt; Stock Dives Over 8% on Thursday


By Malvika Gurung

Investing.com — Shares of the much-in-talks private lender RBL Bank Ltd (NS:) have tanked 8.35% to Rs 132.25 at 12:45 pm on Thursday, after falling almost 10% in early trade amid negative news reports.

As per a media report, the reason for the central bank RBI’s interference in RBL Bank’s top management was a Rs 300-crore loan that was written off within 7 months of being sanctioned. This has emerged as the key reason for the central bank’s intervention.

As per the report, the loan was given as a part of consortium lending in 2018 and RBI has been seeking details concerning the exposure in the company for the last few months from the risk management team of RBL Bank, cited CNBC TV-18.

As a result, RBI had to supersede the top management of the lender and appointed its chief general manager, Yogesh K Dayal as an additional director of the bank’s board.

Evidently, the discrepancies going on in the top management of RBL Bank has spooked investors despite the bank and RBI confirming that the bank remains well placed and capitalised.

Around 10:45 am on Thursday, the stock plummeted almost 10% to Rs 130.9, hitting a fresh 52-week low at Rs 130.5. The banking stock has declined almost 26% this week, after falling almost 23% on Monday.



Read More : Here’s Why RBI Intervened In RBL Bank’s Top Mmgt; Stock Dives Over 8% on Thursday

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