Know why after the appointment of the new CEO and the intervention of RBI, there was such a big fall in the stock of RBL Bank.

RBL Bank Update: Is another private sector bank going through a crisis, due to which there is restlessness in the stock market? As soon as the stock market opened on Monday, there was a big decline in the shares of RBL Bank. The stock of RBL Bank fell 20 percent to its 52-week low of Rs 130.20 and fell to the lower circuit in the stock.

The market panicked over the appointment of a new CEO

In fact, on December 25, the board of RBL Bank, after accepting the resignation of Vishwavir Ahuja from the post of CEO, allowed him to go on leave and appointed Rajiv Ahuja as the new interim CEO and managing director. Since then, the market of speculation about the financial health of the bank has become hot.

Doubt deepened by RBI’s intervention

But the biggest news for the bank came when the RBI appointed Yogesh Dayal, who was posted as Chief General Manager, as additional director. Yogesh Dayal’s tenure will be for two years from 24 December 2021 to 23 December 2023.

Bank’s increased NPA

Many types of problems are being told about RBL Bank. In fact, due to the Corona period, NPAs have increased in the bank’s retail loan segment and micro finance lending. NPAs have also increased in the credit card segment. Due to which concerns are being raised about the balance sheet of the bank. However, after the intervention of RBI, the expectation of the bank coming out of the crisis has increased.

will be bailed out

The news came in the market that Rakesh Jhunjhunwala, the Big Bull of the stock market and RK Damani, the founder of D-Mart, can buy a stake in RBL Bank. For this he has sought permission from RBI. However, Rakesh Jhunjhunwala has denied these reports.

Brokerage houses cut target

ICICI Securities has given a sell advice on downgrading the shares of RBL Bank and has reduced the target from Rs 181 to Rs 131.

Motilal Oswal has expressed concern about the operating performance of RBL Bank after this decision of RBI. At the same time, the brokerage house has expressed the apprehension of taking similar steps by the RBI in other private banks.

CLSA expressed surprise over the appointment of additional director by RBI and said that such decisions are taken by RBI when a bank is in trouble. This will create an atmosphere of instability. The next six months are very important for RBL Bank, this will ascertain the truthfulness of the management’s claim of better performance of the bank. CLSA has reduced the target of RBL Bank from Rs 230 to Rs 200 per share.