RBI Appoints Additional Director On RBL Bank Board
The Reserve Bank of India has appointed chief general manager Yogesh Dayal as an additional director on RBL Bank Ltd.'s board. The appointment is valid for two years between Dec. 24, 2021 to Dec. 23, 2023 or until further orders, the bank said in an exchange notificaton.
Dayal is currently in-charge of communications at the RBI.
The regulator tends to appoint an additional director on a bank board for enhanced supervision. It has the powers to do so under provisions of the Banking Regulation Act.
"The board welcomes the appointment of Mr. Yogesh K Dayal to the board of the bank. The bank shall benefit from this addition considering his rich experience with the highly respected regulator," RBL Bank said in an exchange notification on Saturday.
RBL Bank added that it is well placed to execute its business plan and strategy as communicated earlier.
Previously, the RBI has also refused to allow a three year extension for RBL Bank's managing director and chief executive officer Vishwavir Ahuja, even though the bank's board recommended it. The regulator allowed only a one year extension. Ahuja, who has been leading the bank since 2010, will see his extended term end in June 2022.
The private sector lender saw its asset quality and profitability impacted during the second quarter, largely owing to the delinquencies in its microfinance book.
For the quarter ended Sept. 30, the private bank reported a net profit of Rs 31 crore, down 78% year-on-year. The gross non-performing asset ratio of the bank stood at 5.4%, as compared with 4.99% in the April-June quarter. Net restructured assets for the bank stood at 3.39% of total advances as of Sept. 30, compared with 1.8% as of June 30. Capital adequacy ratio for the bank stood at 16.3%, as compared with 16.5% a year ago.