RBL Bank sets up panel to search for CEO and CEO

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RBL Bank commissioned a search panel, made up of two members of the board of directors, the chairman of its nomination and remuneration committee and an external expert, to find a suitable candidate for the post of CEO and CEO. general of the lender, according to a regulatory file.

On December 25, the bank’s board of directors appointed Rajeev Ahuja as interim managing director and CEO, after putting Vishwavir Ahuja on leave. Rajeev’s appointment was subject to regulatory and other approvals.

The day before, on December 24, the Reserve Bank of India (RBI) appointed its managing director Yogesh K Dayal to the lender’s board of directors as an additional director, a move considered unusual in the case of private sector banks. .

“The board, during its meeting held today, on December 30, 2021, set up a research committee (composed of the chairman of the nomination and remuneration committee, two members of the board and an external expert) to identify and assess the position of managing director and CEO, ”RBL Bank said in the dossier.

The potential candidate can be both internal or external to the bank.

The board has decided to appoint a reputable recruiting firm for this purpose, the bank said.

“The bank will endeavor to complete the succession process at an early date,” he said.

Earlier today, the bank announced that it had received approval from the RBI to appoint Rajeev Ahuja as managing director and interim CEO for three months or until a regular candidate is on board.

Rajeev, during his first interaction with reporters and investors on December 26, said the bank was financially sound and had the full backing of its board of directors and the Reserve Bank of India (RBI).

The umbrella bank, for its part, also came to the bank’s rescue the next day, claiming that its financial situation was satisfactory.

Depositors, as well as investors, should not be paying attention to speculation about the sudden change in business at the head of the bank, the RBI had said.

However, despite clarification from the RBI, the bank’s shares were sold on Monday. The script lost as much as 18% at the close of trade on BSE on the first day of this week, before hitting an intra-day low of over Rs 132 each on BSE.

The bank’s shares closed Thursday at Rs 130.40 each on BSE, down 9.63% from the previous close.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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