RBL Bank shares drop by 20% after MD Vishwavir Ahuja steps down

This stepping down really did a number on the bank shares as the RBL’s shares today tumbled down by 20% in Monday’s intra-day trade.

In a surprise turn of events, RBL bank’s chief executive officer and managing director Vishwavir Ahuja went on leave with immediate effect on December 25, and the central bank appointed Yogesh K Dayal as an additional director in the board of RBL bank who is currently Chief General Manager in RBI and in-charge of communications. 

This stepping down really did a number on the bank shares as the RBL’s shares today tumbled down by 20% in Monday’s intra-day trade. AS of 11.03 am IST, the private lender’s stock fell as much as 19.32% to its lowest price band of Rs 139.50 on the BSE index.

 According to media reports, RBI appointed Rajeev Ahuja as the new CEO and interim Managing Director of the bank. The shares of RBL Bank even fell around 22 per cent from the previous close of Rs 172.5 today. The shares were trading at Rs 135.30, as of 10:15 AM, according to data on BSE’s website. The share opened at Rs 155.25 on Monday, 10 per cent below the previous close.

“We wish to mention that the bank is well placed to execute its business plan and strategy, as communicated during our earnings, call dated October 28, 2021. The business and financial trajectory continues to be on improving trend, post absorbing the challenges due to Covid pandemic,” the bank said.

“The Reserve Bank of India appoints Mr Yogesh K Dayal, Chief General Manager, Reserve Bank of India as an additional director on the board of the RBL Bank for a period of two years w.e.f December 24, 2021, till December 23, 2023, or till further orders, whichever is earlier,” the bank said in its press release. 

Equity benchmark Sensex tanked over 400 points in early trade on Monday, tracking losses in index majors Reliance Industries, Infosys and HDFC Bank as concerns over Omicron-induced restrictions put investor sentiment into peril. The 30-share index plunged 444.83 points or 0.78 per cent to 56,679.48 in the opening trade. Similarly, the Nifty tumbled 128.40 points or 0.76 per cent to 16,875.35.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time