The Reserve Bank of India (RBI) will soon greenlight the next CEO and managing director of Mumbai-headquartered RBL Bank, two people with direct knowledge of the matter told CNBC-TV18.
The list sent by the board of directors of the bank has two names, that of a lady and a man, and according to the sources, one is currently the head of a foreign bank in India and the another is a former head of a public sector bank.
In a surprise move last Christmas, the board sent then chief executive and CEO Vishwavir Ahuja on leave, and Rajeev Ahuja was named interim director. The bank and the RBI did not disclose the reason, but the street took the move as a sign of trouble and the bank’s shares lost significant value.
What we know about the selected candidates
The lady had spent a lot of time in another private bank during her first visit. This private bank is known for producing many CEOs. The gentleman proved himself by turning a fraud-ridden housing finance company into a trustee under bankruptcy law. He is widely regarded in the industry as the man who led to the successful resolution of the first financial services company to be sent to bankruptcy court.
Sources told CNBC-TV18 the role could go to the head of the foreign bank. While some in the market may wonder why she would quit a lavish job to join a mid-sized private bank, that shouldn’t really come as a surprise, given that the foreign bank has seen at least three former CEOs leave to lead companies. other private banks. banks.
The appointment is expected to take place in the coming weeks, as Rajeev Ahuja’s term is expected to end in just over a month.
RBL Bank under Vishwavir Ahuja
The bank experienced significant growth under Vishwavir Ahuja, who began his stint at RBL in July 2010. Net profit fell from Rs 12 crore in FY11 to Rs 867 crore in FY19 before entering negative territory in FY22.
After 2018-19, RBL Bank was under investors’ radar for higher non-performing assets than its peers as some of its corporate lending bets failed to pay off.
After the initial pain in December, shortly after Vishwavir Ahuja exited, the bank said it was able to stabilize deposit outflows in January. Amidst this turmoil, the task of the new CEO is cut out – that of stabilizing the ship.
First post: STI