RBL Bank has tasked a search panel, comprising two board members, chairman of its nomination & remuneration committee and an external expert, to find a suitable candidate for the lender’s MD and CEO post, according to a regulatory filing.
The bank’s board on December 25 elevated Rajeev Ahuja as an interim MD and CEO with immediate effect, after sending Vishwavir Ahuja on leave. Rajeev’s appointment was subject to regulatory and other approvals.
A day earlier, on December 24, the Reserve Bank of India (RBI) appointed its Chief General Manager Yogesh K Dayal on the lender’s board as an additional director, a move seen as unusual in the case of private sector banks.
“The board at its meeting held today ie December 30, 2021, has constituted a search committee (comprising of chairman of the nomination and remuneration committee, two members of the board and one external expert) to identify and evaluate for the position of MD & CEO,” RBL Bank said in the filing.
The potential candidate can be both from within or outside the bank.
The board had decided to appoint a reputed recruitment firm for the purpose, the bank said.
“The bank will endeavour to complete the succession process at an early date,” it said.
Earlier in the day, the bank informed about receiving the RBI’s approval to appoint Rajeev Ahuja as its interim MD and CEO for three months or until a regular candidate was onboarded.
Rajeev in his first interaction with reporters and investors on December 26 had said that the bank was financially sound and that it had full support from its board of directors and the Reserve Bank of India (RBI).
The apex bank, on its part, also came to the bank’s rescue the very next day, stating that its financial position was satisfactory.
The depositors, as well as the investors, should not pay heed to the speculation around the sudden change of affairs at the helm of the bank, the RBI had said.
However, despite the RBI’s clarification, the stock of the bank faced a sell-off on Monday. The scrip shed as much as 18 per cent at the close of trade on BSE on the first day of this week, before touching an intra-day low of over Rs 132 apiece on the BSE.
Shares of the bank on Thursday closed at Rs 130.40 apiece on the BSE, down 9.63 per cent from the previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
