Consider Incorporating private RBL Bank with state- possessed lender, says AIBEA
RBL’s CEO goes on leave after the RBI appointed Yogesh K Dayal as an fresh director of the bank.
The government must cover the interests of depositors at RBL Bank and consider incorporating it with a state- possessed one, said an assiduity trade union on Sunday after the central bank made operation changes at the private lender.
RBL said last night that Vishwavir Ahuja, its managing director and principal administrative officer, had gone on leave after the Reserve Bank of India appointed Yogesh K Dayal as an fresh director of the bank.
“ We’re upset and concerned about the developments that are taking place in the affairs of RBL BankLtd., the Kolhapur grounded private Bank,” said the All India Bank Workers Association (AIBEA) in a letter to Finance Minister Nirmala Sitharaman.
Action for RBL is important in light of the problems encountered by private lenders like YES Bank and Lakshmi Vilas Bank last time. RBL’s total advances have doubled in the last many times. From about Rs crores in 2017, advances have crossed Rs crore now, AIBEA said.
The bank’s GrossNon-Performing Means (GNPAs) of the Bank have swelled from only Rs 357 crore in 2017 to further than Rs crore. Its operating profit has increased, but the bulk of it has been acclimated towards provision for bad loans. RBL’s net profit is veritably stingy, said C H Venkatachalam, general clerk of AIBEA.
There are also reports that RBL has been over indulging in retail credit,micro-financing and credit cards and accordingly has burnt its cutlet performing in weakening the financials, AIBEA said.
RBL Bank has assured investors that it’s “ well placed to execute its business plan and strategy as communicated during our earnings call dated October 28, 2021.”
“ The business and fiscal line continues to be on perfecting trend, post absorbing the challenges due to Covid 2 epidemic,”the bank said in form with BSE.
RBL said its financials are “ robust with healthy capital acceptability of16.3 per cent, high situations of liquidity” as reflected through Liquidity Coverage Rate of 155 per cent. The netnon-performing means (NPA) were stable at2.14 per cent, for the quarter ended September 30, 2021. “ In addition, the Bank has also bettered the granularity of its deposits and advances,” it said.