RBL Bank Stock Bled Red Over CEO Going On Medical Leave
The latest report by Edelweiss Securities says that the bank may make an exit from the Nifty Bank index by National Stock Exchange (NSE) in its upcoming review due in March 2022.
The news of private sector lender RBL Bank CEO Vishwavir Ahuja going on a medical was not received well by the market. Bears made their presence felt by smashing down the shares of RBL to a record 52-week low of Rs 130.20 apiece, down nearly 25% from the last trading day's low on National Stock Exchange (NSE).
On top of that, the latest report by Edelweiss Securities says that the bank may make an exit from the Nifty Bank index by National Stock Exchange (NSE) in its upcoming review due in March next year, while Bank of Baroda may replace it.
"RBL Bank could get excluded from Nifty Bank," the Edelweiss report said.
"We continue to believe in the forthcoming Nifty Bank Review that Bank of Baroda holds a very strong chance of replacing RBL Bank," the brokerage added. Edelweiss will confirm the prediction in the first half of January 2022.
For the uninitiated, in the second half of February, the NSE will announce the change in indexes, and the rebalancing of indexes will happen on the last day of March 2022.
RBL Bank, on Saturday, had announced that the Reserve Bank Of India (RBI) appointed Yogesh Dayal, chief general manager at RBI, as an additional director for two years till December 23, 2023.
RBL's board has accepted the request from Vishwavir Ahuja, managing director and chief executive officer, to go on medical leave with immediate effect, the company said on Saturday. Rajeev Ahuja has been named as interim managing director and CEO.
In a press conference on Sunday evening, Rajeev mitigated concerns regarding the private lender’s financial health, emphasising that the events that occurred over the weekend were not connected to the quality of advances or asset quality.
He claimed that the bank’s board had already chosen him as the successor to Vishwavir, and RBI-appointed additional director Yogesh Dayal also gave his assent to his selection as MD and CEO, at a meeting held over the weekend, adding the RBI backs the bank’s management and its strategy.